Cabinet approves new Mines and Minerals Development and Regulation Bill (2011)

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The Cabinet has taken a decision to place a proposal with Parliament to introduce the Mines and Minerals (Development and Regulation) Bill (MMDR Bill), 2011, in terms of the National Mineral Policy, 2008 and also repeal the existing Mines and Minerals (Development and Regulation) Act, 1957. 

The new MMDR Bill, 2011, aims to introduce better legislative environment for attracting investment and technology into the mining sector -

• States may call for applications in notified areas of known mineralization for prospecting based on technical knowledge, value addition, end-use proposed ore-linkage etc., and invite financial bid;
• States may grant direct mining concessions through bidding based on a prospecting report and feasibility study;
• State Government may set up a minimum floor price for competitive bidding;
• Special provisions for allowing mining of small deposits in cluster, where cooperatives can apply;
• National Mining Regulatory Authority is there for major minerals, State Governments may set up similar Authority a State level for minor minerals;
• Imposition of a Central cess and a State cess, and setting up of Mineral Fund at National and State Level for capacity creation;
• For the purpose of sharing the benefits of mining with persons or families having occupation, usufruct or traditional rights in mining areas, and for local area infrastructure creation;
• Sustainable and scientific mining through provision for a Sustainable Development Framework;
• Consultation with local community before notifying an area for grant of concession, and for approval of Mine Closure Plans;
• Enhanced penalties for violation of provisions of the Act, including debarment of person convicted of illegal mining for future grants and termination of all mineral concessions held by such person; and
• Establishment of Special Courts at the State level for speedier disposal of the cases of illegal mining.