Ordinance to amend MMDR Act cleared by President

President Pranab Mukherjee has signed an ordinance to amend the Mines and Mineral (Development and Regulation) Act.

The Union Cabinet had approved the MMDR (Amendment) Ordinance, 2014, on January 5. According to the Mines Ministry officials, the ordinance was signed by the President late on January 12.

The ordinance would pave the way for the auction of iron ore and other non-coal mineral mines.

PTI adds: It will also enable creation of District Mineral Funds for the welfare of project-affected people.

The need for taking the Ordinance route was felt as the Government was finding it difficult to allocate mines because the Mines Ministry could not table a Bill in the winter session of Parliament to amend the Mines and Minerals Development and Regulation) Act, 1957.

Industry body the Federation of Indian Mineral Industries, however, has been opposing the auction route, saying it would sound the ‘death knell’ for the industry and could lead to cartelisation and waste.

While a draft Bill was put up on the Ministry’s website for public comments, the Mines and Minerals (Development and Regulation) (Amendment) Bill, 2014, could not be tabled during the winter session of parliament that ended last month.

The Ordinance would also enable greater decentralisation of power to States for allocation of resources.

The mining sector has been facing several issues like ban for the past few years.

The previous UPA Government had also brought a Bill in 2011 to amend the Act but it lapsed with the dissolution of the previous Lok Sabha.

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