Prime minister Narendra Modi led NDA government promulgated the mines and minerals development and regulation act 1957. The MMDR ordinance 2015 will allow in granting mining leases for both bulk minerals and notified minerals under. Earlier government approval was needed for notified minerals of first schedule. These minerals are iron ore, manganese, bauxite, copper and gold. In its tenure of 7months the NDA government has issued 9th ordinance including this. The ordinance was promulgated under article 123. Article 123 explained in brief in our earlier post Motor vehicle amendment act.
Amendments made in MMDR ordinance
The recent amendment in MMDR ordinance mandates grant of mines through license cum mining lease through a policy of auction. The mining leases and prosperity cum mining leases awarded through auction can be transferred after state government’s permission. If state government doesn’t convey any decision in this regard it will be taken as deemed approval. This will encourage private investment and modern technology in mining. The ordinance grants longer tenures over mines against the previous practice of 30 years. The leases will be auctioned instead of renewal after the end of lease period. Other than royalty lease holders will be required to pay a compensation amount which will be used for the benefits of the people ill affected by mining activities. The amount will be paid to a District mineral foundation (DMF). Illegal mine diggers will be penalised 5 lakh per hectare and 5 years imprisonment or both.