The Lok Sabha Tuesday approved the Mines and Minerals (Development and Regulation) Amendment Bill, aimed at bolstering India’s mineral sector and securing supply chains for critical resources. The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957, and introduces an exploration licence for specified minerals.
The bill was passed amidst opposition sloganeering demanding discussion on Election Commission’s SIR drive.
It introduces an exploration licence for 29 specified minerals, including atomic minerals like lithium, beryllium, niobium, titanium, tantalum, and zirconium. This licence will be granted by the state government through competitive bidding.
The Central government will prescribe details such as the manner of auction, terms and conditions, and bidding parameters for exploration licences through rules.
The exploration licence will be issued for five years, extendable by up to two years, and allows activities in an area up to 1,000 square kilometres.
If resources are proven after exploration, the state government must conduct an auction for mining leases within six months. The licensee will receive a share in the auction value of the mining lease.
By introducing exploration licences and streamlining auction procedures the law aims to promote sustainable development by ensuring the efficient utilization of mineral resources and aligning with India’s economic development and national security goals.
The amendment Act introduces key changes to India’s mining sector, focusing on critical minerals and exploration licences.