New Delhi, Oct 18: The Centre is considering overhauling the Mines and Minerals (Development and Regulation) Act, 1957, and replacing it with a comprehensive new mining law aimed at improving ease of living and ease of doing business.
An inter-ministerial committee, chaired by the Additional Secretary in the Ministry of Mines, will draft the proposed legislation, sources said.
The committee will undertake a comprehensive review of the existing Act, examine international best practices and incorporate relevant provisions into the proposed law.
It will also consider future trends and technological developments in the mining sector.
Given the sector’s importance to the economy, technological advancement, the country’s strategic requirements and the vision of Viksit Bharat by 2047, the government has proposed a comprehensive overhaul of the law, sources added.
The proposed legislation is expected to simplify the language of the existing Act, align its provisions with related laws and constitutional requirements, and introduce structural and substantive reforms to improve clarity, enforceability and efficiency.
The committee will consult stakeholders, including state governments, before preparing the draft Bill.
The Ministry of Mines administers the MMDR Act, which has been amended periodically to address the evolving needs of the mining and minerals sector, sources said.
In recent years, the Centre has sought to review the country’s regulatory framework across sectors to introduce reforms aimed at improving ease of living and ease of doing business.
The MMDR Act is the principal central legislation governing the development and regulation of mines and minerals in India. It empowers the Centre to regulate mining and mineral development in the public interest and frame rules for mineral conservation and systematic development.
The Act distinguishes between major and minor minerals, with the Centre regulating major minerals and state governments regulating minor minerals.
Under the Act, state governments grant mineral concessions, including prospecting licences and mining leases, in accordance with the applicable central legal framework and rules. The Centre also prescribes royalty rates, which states collect from leaseholders.
PTI