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Mining industry opposes government proposal to auction mining leases

05 Dec 2014 Evaluate

The mining industry has strongly opposed government decision and route to auction mining leases for iron ore, bauxite and gold through an amendment to the country's 57-year-old MMDR Act. Miners claim the amendment, if implemented as proposed now, will irreparably damage the industry and hence have asked the government to re-consider their decision.

With this, the mines ministry has floated a draft of the Mines and Minerals (Development and Regulation) (Amendment) Act, 2014 on its website and is meeting stakeholder in the capital over from next few days. Seconding these views, Federation of Indian Mineral Industries, representing some of the country's largest miners, also believe that the move will 'sound the death-knell of the mining industry”.

However, Narendra Singh Tomar, who has taken over as new Union Minister of Labour and Employment hopes the amendments will improve transparency in allocation of mineral resources while eliminating delay and bring the exchequer its fair share of the value of these resources and attract private investment.

It plans to start with 'notified' minerals like iron ore, manganese, bauxite and limestone, whose reserves are better established and which in value terms account for 85% of India's production.

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