May 18, 2024

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LS passes MMDR Amendment Bill

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Lok Sabha on Friday handed the Mines and Minerals (Development and Regulation) Amendment Bill, 2021, which shall take away restrictions of end-use for future auctions of mineral mining rights, enable operators of present captive mines to promote as much as 50 per cent of minerals extracted in a yr and empower the central authorities to conduct an public sale of mines if state governments don’t conduct auctions in a well timed method.
The Bill amends the MMDR Act, 1957, that gives a framework for the regulation of the mining sector in India.
Coal and Mines Minister Pralhad Joshi stated the modification Bill, which was launched in Lok Sabha on March 15, aimed toward boosting India’s complete mineral output, noting that progress within the output of the mining sector would result in a big improve in employment alternatives.

“Contribution by the mining sector to the GDP is only 1.75 per cent. One per cent growth in the mining sector generates almost 1 lakh (jobs) in direct employment and 5 lakh (jobs) in indirect employment,” Joshi stated, including that India produces minerals value Rs 1.25 lakh crore per yr and imports minerals value Rs 2.5 lakh crore per yr.
Joshi stated, “It has been said that the Centre is going to take the power of the auction. This has been said about the federal structure. But I want to say…The Government of India does not want any power. The entire revenue goes to the State Government.”
Observing that Foreign Direct Investment has been allowed with a view to draw overseas funding and know-how, Joshi stated, “This will bring the latest technology in the field of mining and will provide more efficiency in the coal mining sector…”
Addressing the Opposition’s issues relating to the dilution of states’ powers and income loss, the minister stated, “…All the revenues would go to the States alone, not even a single paisa would come to the Centre.”
Earlier, opening the dialogue on the Bill, Congress member Vincent Pala requested the federal government to exclude the Sixth Scheduled Areas from the ambit of the proposed amendments.
Supporting the Bill, YSRCP member N Reddeppa stated, “This Bill is in the direction taken by the Government to revive the economy following the pandemic. It will give a boost to the mining sector, especially commercial coal mining and attract more investment into the sector.”
TRS member Nama Nageswara Rao demanded that the state governments ought to be given extra powers beneath the amended Act.

BSP member Ritesh Pandey raised the difficulty of air pollution attributable to mining actions.
Later, the House rejected amendments moved by Congress Party member Jasbir Singh Gill and handed the Bill with a voice vote.

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