BHUBANESWAR: The Ministry of Mines has notified the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 which will pave way for transfer of mining lease of all types of mines and sale of 50 per cent of mineral produced from captive mines.
Amendment of the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016 was done after extensive consultations with State governments, industry associations, miners and other stakeholders with the objective of increasing mineral production and time-bound operationalisation of auctioned mines.
The other objectives include more investment in the mining sector, employment generation, increasing the pace of exploration and auction of mineral resources. With this amendment, the government has paved way for releasing additional minerals in the market by greater utilisation of capacities of captive mines. The allowance for sale of prescribed quantity of mineral will also motivate the lessees to enhance production from captive mines.
Further, payment of additional premium amount, royalty and other statutory payments in respect of the quantity sold shall boost the revenue of the State governments. Minimum area for grant of mining lease has been revised from 5 hectare to 4 hectare while for certain specific deposits, minimum 2 hectare is provided.
Partial surrender of mining lease area is allowed in all cases. At present, part surrender was allowed only in case of non-grant of forest clearance. Earlier, if the lessee wanted to transfer the lease, s/he had to surrender the entire lease.The amended rules allow transfer of composite licence or mining lease of all types of mines and provide for mutation of ML/CL in favour legal heirs in case of death of the lessee or licencee.
Further, the interest on delayed payments has been revised from existing 24 per cent to 12 per cent. Provisions have been added to allow disposal of overburden/waste rock/mineral below the threshold value, which is generated during the course of mining or beneficiation of the mineral. This will enable ease of doing business for the miners.
Penalty provisions in the rules have been rationalised. Previously, the rules provided for imprisonment of up to 2 years or fine up to Rs 5 lakh or both for violation of each and every rule irrespective of the severity of the violation.
Relief for miners
The amended rules allow transfer of lease of all types of mines
Minimum area for grant of mining lease revised from 5 ha to 4 ha
Partial surrender of mining lease area allowed in all cases
The move shall boost the revenue of State governments