Narendra Singh Tomar to seek states’ views on amendments to Mines & Minerals Act

By Meera Mohanty

BHUBANESHWAR: Hoping to find quick solutions to a sector battling to recover from serious regulatory failures, Union Minister of Steel, Mines, Narendra Singh has initiated a discussion with state Chief Minister on amendments to the Mines and Minerals (Development & Regulation) Act 1957 and relevant rules. In a letter addressed to Chief Ministers, Tomar who will also be visiting key mineral rich states such as Karnataka has sought states’ views.

A replacement Bill to the MMDR Act 1957 was tabled in the parliament, but never cleared. Its most contentious issue was a profit sharing clause that asked coal miners to poart with 26 per cent of profits and miners of major minerals such as iron ore and bauxite miners to deposit an amount equal to royalty towards the development of local areas. The bill however, also proposed greater decentralization of power to states, to allocate resources and critically introduced the option of buying and selling of mineral rights.

The Chief Ministers of Goa, whose mineral sector has come to a grind, and Rajasthan whose quarries battle constantly changing regulations are meeting the Minister on July 3, and July 14. Tomar is visiting Karnataka on July 4. “Expressing concern over the negative public perception with regard to mining,” Tomar said a ministry release has urged States to come together to evolve “a transparent and efficient system of allocation of leases, along with a robust regulatory framework that best serves India’s interests.”