Companies may be allowed to apply for mining leases without NoCs from land owners
The government is considering a proposal to allow metal and mining companies to apply for mining leases even without obtaining no objection certificate (NoC) from land owners, an official in the ministry of mines said.
By Subhash Narayan, ET Bureau |
NEW DELHI: The government is considering a proposal to allow metal and mining companies to apply for mining leases even without obtaining no objection certificate (NoC) from land owners, an official in the ministry of mines said.
The mining application criteria is being relaxed to attract investments in the mining sector, he said requesting anonymity. The proposal is part of amendments in the Mines and Minerals (development and regulations) Act, which is expected to be tabled in the next session of the Parliament. The Act is being amended to operationalise the new national mineral policy.
At present, all applicants for a particular mining area require separate NoCs before applying for a mining lease. Companies also need require NoCs from all households, settled in the proposed mining area, individually. ���There is no logic for all applicants to seek NoCs from all residents in the mining area separately,��� he said.
���As per the proposal, winner of the mining area will be given specified additional time to obtain NoCs, failing which ministry will not clear its application,��� he added. Changes will also apply in cases where only a single application is received for a particular mineral block. The current policy does not award mining lease in cases where there is a single applicant.
���The steel ministry has also favoured inclusion of this provision in its suggestions on changes in MMDR Act given to the mining ministry,��� another government official said asking not to be identified.
The Centre also plans to clip some powers of state governments through amendments in the MMDR Act. Apart from disciplining states to grant leases within a specified time period, the changes proposed in the Act also take away rights of state government to prematurely terminate a mining lease.
It is proposed that the provision on premature termination in the existing act would be deleted to prevent its misuse by the state government. ���Several provisions in the MMDR Act already empowers states to terminate a mineral lease prematurely for any violation of terms and conditions. This eliminates the need to have a separate provision dealing with premature termination,��� the official said.
The mining application criteria is being relaxed to attract investments in the mining sector, he said requesting anonymity. The proposal is part of amendments in the Mines and Minerals (development and regulations) Act, which is expected to be tabled in the next session of the Parliament. The Act is being amended to operationalise the new national mineral policy.
At present, all applicants for a particular mining area require separate NoCs before applying for a mining lease. Companies also need require NoCs from all households, settled in the proposed mining area, individually. ���There is no logic for all applicants to seek NoCs from all residents in the mining area separately,��� he said.
���As per the proposal, winner of the mining area will be given specified additional time to obtain NoCs, failing which ministry will not clear its application,��� he added. Changes will also apply in cases where only a single application is received for a particular mineral block. The current policy does not award mining lease in cases where there is a single applicant.
���The steel ministry has also favoured inclusion of this provision in its suggestions on changes in MMDR Act given to the mining ministry,��� another government official said asking not to be identified.
The Centre also plans to clip some powers of state governments through amendments in the MMDR Act. Apart from disciplining states to grant leases within a specified time period, the changes proposed in the Act also take away rights of state government to prematurely terminate a mining lease.
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It is proposed that the provision on premature termination in the existing act would be deleted to prevent its misuse by the state government. ���Several provisions in the MMDR Act already empowers states to terminate a mineral lease prematurely for any violation of terms and conditions. This eliminates the need to have a separate provision dealing with premature termination,��� the official said.
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