The Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 which will allow private sector to mine key atomic minerals including lithium, and deep-seated minerals including gold, silver, copper and zinc.
The bill was passed amid a walk-out by the Opposition members. Union Minister Pralhad Joshi moved the bill in Rajya Sabha and was passed by voice vote. The bill was already passed in Lok Sabha on July 28.
The bill amends Mines and Minerals (Development and Regulation) Act, 1957. The original Act for offshore mining does not provide for auctions of minerals.
The objective behind the bill is to mine rocks under the sea.
The Offshore Areas Mineral (Development and Regulation) Act was enacted in 2002, however, no mining activity could be carried out from the sea bed owing to several pending litigations.
What is Mines and Minerals (Development and Regulation) Amendment Bill, 2023
The bill will provide a grant of production lease to the private sector through auction through a competitive bidding process.
It aims at introducing a four-year timeline for commencement of production and dispatch after the execution of composite licence or production lease, and time-line of two years (extendable by one year) for re-commencement of production and dispatch after discontinuation.
According to the Statement of Objects and Reasons of the bill, it proposes to remove the provision for renewal of production lease and provide a fixed period of 50 years for production lease similar to the provisions of the Mines and Minerals (Development and Regulation) Act, 1957.
Besides, in the case of atomic minerals, the grant of exploration licence or production lease would be made only to a government or a government corporation.
It will enable the central government to frame rules for the conservation and systematic development of minerals in offshore areas and for the protection of the environment by preventing or controlling any pollution which may be caused by exploration or production operations.
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