The Lok Sabha on Friday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2021.
Introduced by Minister of Coal and Mines Pralhad Joshi in Parliament on Monday, the Bill proposed to conduct all future auctions of mineral mines without a captive use restriction and to allow existing captive coal mines to sell up to half of their production.
“The sale of minerals by captive plants would facilitate increase in production and supply of minerals, ensure economies of scale in mineral production, stabilise prices of ore in the market and bring additional revenue to the States,” the Bill said.
It provides for the payment of an additional amount to a State government for the extension and grant of mining lease of government companies.
The Bill also empowers the Central government to notify any mineral-rich area and conduct an auction if the State government “fails to notify the area or conduct auction in order to ensure auction of more number of mineral blocks on regular basis for continuous supply of minerals in the country.”
It has also proposed for the Central government powers to issue directions regarding the composition of the District Mineral Foundation and the utilisation of its fund.