BHUBANESWAR: The Ministry of Mines has proposed further amendment in the Minerals Concession Rules (MCR)-2016 for time-bound operationalisation of mines, leases of which were transferred for captive purpose, and scale up production to meet the increasing demand of ore by metal industries.
The Ministry has proposed fourth amendment in the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules-2016 to repeal two rules, the Minerals (Transfer of Mining Leases Granted Otherwise than through Auction for Captive Purpose) Rules-2016 and Mineral (Mining by Government Company) Rules-2015, after suitably incorporating the provisions in the MCR-2016.
The Centre had notified the Minerals (Transfer of Mining Leases Granted Otherwise than through Auction for Captive Purpose) Rules-2016 with an objective to boost mergers and acquisitions in the mining and related sectors besides, generate employment and additional revenue for the State.
Apart from the transfer charges payable by the transferee equal to 80 per cent (pc) of the royalty, the mineral bearing states will collect 0.5 per cent of the estimated value of the mineral reserved in the captive mines from the transferee as an upfront payment.
The upfront payment will have to be submitted by the transferee within a period of 30 days of receipt of demand from the state government. Circulating the draft Fourth Amendment Rules-2021 among states, mining industries, industry associations and other stakeholders, the Ministry has sought their views by July 18 as a pre-legislative consultation.
"Extensive amendments have been made in the Mines and Minerals (Development and Amendment) Act-1957 (MMDR Act) by the MMDR Amendment Act-2021 with effect from March 28 with the objectives of increasing employment, investment in the mining sector, revenue for the states and production, and time-bound operationalisation of mines, increase the pace of exploration and auction of mineral resources," the draft said.
Draft law
Two mineral concession rules will be repealed
Its provisions will be incorporated in MCR-2016
July 18 is the deadline for submission of suggestions