Federation of Indian Mineral Industries seeks lease extensions
The Federation of Indian Mineral Industries (FIMI) has sought the immediate extension of leases of over 300 non-captive mines in the country, expressing concerns that there might be a crisis situaion when these licenses are set to run out next year.
The proposal was made in a presentation by FIMI before a high-level committee of the Niti Aayog. FIMI submitted that a crisis situation in the mining industry had developed after a January 2015 amendment was made in the MMDR Act, 1957. This had provided for auctions as the only way to allocate concessions for a fixed period of 50 years to private companies, both captive and non-captive.
The Niti Aayog committee had been set up last month to identify key challenges and negate their impact in the mining sector.
However, FIMI said that government companies, both Centre or State-owned, are “allowed extension of existing leases for a period of 20 years at a time beyond the stipulated period of 50 years”. This, FIMI says, will lead to a crisis-like situation and litigation.
Demanding remedial measures, FIMI said, “Till Amendment Act, 2015, there was no distinction between captive, non-captive and government companies. They were at par in all respects including tenure of leases. Mining — public or private, captive or non-captive — is one and should be taken as such in MMDR Act”.
The industry body also said that it is not possible for a prospective buyer to bid for an unsold quantity not required in the domestic market or exported because of the 30 per cent export duty. This will, therefore, lead to litigation and chaos and disruption of raw material supplies to steel plants, it said.