Mint Explainer: Govt proposes bigger role for private companies in mining
New Delhi: The union government is pushing through its legislative agenda in the monsoon session of Parliament. It introduced six bills and passed one in the Lok Sabha on Wednesday, and more are likely to be introduced in the coming days. One of the key bills facing Parliamentary scrutiny is the Mines and Minerals (Development and Regulation Amendment) Bill, 2023.
Mint takes a closer look at this key piece of legislation. The bill carries forward various reforms in the mining sector previously undertaken by the government. It promotes exploration of mineral resources by the private sector by offering a composite exploration license for deep-seated and critical minerals.
Reforms include removing lithium from the list of restrictive atomic minerals for which public-sector companies need the government’s permission to mine. The bill also empowers the union government to exclusively auction mining leases and composite exploration licences for certain high-value minerals such as gold, silver, platinum and copper. It will also dispense with the cumbersome forestry clearance process for mine reconnaissance and prospecting operations, making it easier for private firms to exploit the country’s mineral resources.
Other reforms include allowing states to grant composite mineral licences without having to get the union government’s permission. The MMDR Act provides for two types of mineral concessions to private entities through auctions – a mining lease for purely mining operations and a composite licence for prospecting operations followed by mining operations. It has no provision to grant a concession for undertaking the full range of exploration, from reconnaissance to prospecting.
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