Wednesday 22 April 2015

Mining lease auction: State govts may get more powers

According to MMDRA Act, 2015, “the state government may in its discretion identify a specific end use” as a prerequisite for auction of mining lease” 

Coal extraction-mine excavator
The central government is proposing to give state governments the powers to reserve end-use of any mine put up for mining lease (ML) auction, according to a media report.

Under the mineral auction rules mentioned in the Mines and Minerals (Development and Regulation) Amendment (MMDRA) Act, 2015, “the state government may in its discretion identify a specific end use” as a prerequisite for auction of ML.”

The concept of a composite licence, prospecting licence (PL)-cum-ML, for an area where there is inadequate evidence of mineral contents has been added in the recently passed MMDRA Act, the report added.

PL is granted for exploring, locating and proving mineral deposits. ML is required finally to extract minerals.
Before the enactment of MMDRA Act, the state governments had the discretionary powers to hand over these licences.

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