With an aim to fast track the reforms process, the government, after approving key reforms for coal and insurance sectors recently through ordinance route, may soon take the same route to pave the way for auction of iron ore and other minerals as the proposed amendments to the MMRDA Act have been pending since long.
As mining sector is one of the chosen segments for the ‘Make in India’ programme, the government has planned to circulate the new bill seeking promulgation of ordinance for bringing changes in Mines and Minerals (Development and Regulation) Act, 1957. A large number of mines have remained shut and the Mines Ministry is of the view that due to absence of a set of guidelines, the government is unable to take decisions. Meanwhile, the ordinance will pave the way for decision-making.
Mines Ministry has prepared a draft amendment Bill and is now considering moving a proposal to the Cabinet to adopt the ordinance route as the Winter Session of Parliament is over. The Bill sought to introduce competitive bidding through the auction route for iron ore and other minerals and also focuses on attracting private investment and latest technology and eliminating delay in administration. Meanwhile, the provisions for the auction route for the allocation of mines and creation of District Mineral Fund for the welfare of the project-affected people would remain. The Ordinance would also provide for greater decentralization of power to states for allocation of resources.
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