Government of India
Ministry of Mines
New Delhi, 5th August 2009
The Central Government had enunciated a new National Mineral Policy in March 2008. In order to give effect to the direction envisioned in the new Mineral Policy, the Ministry of Mines circulated a draft Cabinet Note on legislative changes, after due consultations with the important mineral producing State Governments vide Ministry’s O.M. of even number dated 14.1.2009. The Ministry had received comments in this consultation, which were duly considered.
2. However, while taking the amendments for legislative vetting, it was suggested in the discussions that the existing law had already been amended several times and in order that the objects and reasons emanating from the Mineral Policy to be clearly reflected, repeal of the prevailing Mines and Minerals (Development and Regulation) Act, 1957, and drafting of a new legislation would be preferable. As per this suggestion, the Ministry of Mines has now framed a new Mines and Minerals (Scientific Development & Regulation) Act, available on the web site of Ministry.
3. Some of the important features of the new draft Act which aim to develop mineral sector of the country in a holistic manner are :
- Powers to grant of concession are being fully devolved onto the State Governments, excepting in respect of minerals in Part ‘A’ and ‘B’ of the First schedule to the present Mines and Mineral Development Act, 1957.
- The concerns of the State Government regarding fair compensation are being addressed by enabling generation of additional revenues to the State through auction of ore bodies.
- Incorporation of a Sustainable Development Framework to protect the concerns of host population.
- Creation of a Mineral fund at National and State level for local area and mining infrastructure development.
4. In this respect, comments on the draft new Act are invited from the stakeholders. Comments may be sent by the 31st August 2009 by email at email@example.com .
Under Secretary to the Government of India