Centre relaxes mining rules to boost mining sector

mining sector, employment opportunities, Ministry of Mines

Photo: IANS

The Centre has eased rules for Mining to increase employment opportunities, investment in the mining sector and to increase revenues for the state governments.

The New rules notified by the Ministry of Mines have kept mining of Atomic and HydroCarbons Energy Minerals of the Concession in the amendments of the Mines and Minerals (Development and Amendment) Act, 1957 (‘MMDR Act’). The new rules are likely to increase the pace of exploration and auction of mineral resources in the country, said a senior officer of the Ministry of Mining.

“The amendment rules have been framed after extensive consultations with the State Governments, industry associations, miners, other stakeholders and the general public,” the officer said.


“The New rules inserted to provide a manner of sale of 50% of mineral produced from the captive leases. With this amendment, the Government has paved the way for releasing additional minerals in the market by greater utilization of mining capacities of captive mines. The allowance for sale of prescribed quantities of mineral shall also motivate the lessees to enhance the production from the captive mines,” the Ministry said.

“Provision added to allow the disposal of overburden/ waste rock/ mineral below the threshold value, which is generated during the course of mining or beneficiation of the mineral. This will enable ease of doing business for the miners. Further, the minimum area for the grant of mining lease has been revised from 5 hectares (ha). to 4 ha. For certain specific deposits, a minimum 2 ha is provided,” the notification stated.

The government has allowed partial surrender of mining lease area cases and rules have also been amended to allow transfer of composite licence or mining lease of all types of mine. The interest on delayed payments has also been revised from existing 24% to 12%,” the officer said.

The government has further rationalized the penalty provisions in the rules. Previously, the rules provided for a penalty of imprisonment up to 2 years or fine up to 5 lakh rupees or both for violation of each and every rule irrespective of the severity of the violation, the Ministry said.