Centre notifies amended minerals concession rules

• The government has notified the amended mineral conservation and development rules, a move will that will not only improve mine planning practices, security and safety in mines but also ensure better supervision of mining operations.
• The Mineral Conservation and Development Rules (MCDR) have been framed under section 18 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).
• The rules pertain to conservation of minerals, systematic and scientific mining, development of minerals in the country and for the protection of environment.

New rules framed in consultation with stakeholders

• The new rules have been formulated after extensive consultations with state governments, industry associations, miners, other stakeholders and the general public.
• With the amended rules, the government has paved the way for the release of additional minerals into the market by maximizing the mining capacity of captive mines.
• It also provides for the manner in which 50 per cent of the minerals produced from captive mines can be sold.

Major provisions and impact

Boost to revenue of state governments

• New rules inserted provide for manner of sale of 50% of mineral produced from the captive leases.
• With this amendment, the Government has paved the way for releasing of additional minerals in the market by greater utilization of mining capacities of captive mines.
• The allowance for sale of prescribed quantity of mineral shall also motivate the lessees to enhance the production from the captive mines.
• The allowance for the sale of minerals in prescribed quantity will also motivate the lessees to increase production from captive mines, the statement said.
• In addition, the additional premium amount, royalty and other statutory payments in respect of the quantity sold will boost the revenue of the State Governments.
• Provisions have also been added to allow the disposal of overburden/ waste rock/ mineral below the threshold value arising during mining or beneficiation of mineral.

Minimum area for mining lease revised

• The minimum area for grant of mining lease has been revised from 5 hectares (ha) to 4 hectares.
• For certain specified deposits, a minimum of 2 hectares is provided.
• Partial surrender of the mining lease area has been allowed in all cases.
• Till now, partial surrender was allowed only in case of non-grant of forest clearance.
• The amended rules also allow the transfer of composite licenses or mining leases for all types of mines.

Revised Penal Provisions

• Penalty provisions in the rules have been rationalized.
• Previously, the rules provided for penalty of imprisonment upto 2 years or fine upto 5 lakh rupees or both for violation of each and every rule irrespective of the severity of the violation.
• Amendment in the rules categorized the violations of the rules under the following major heads:

1. Major Violations: Penalty of imprisonment, fine or both.
2. Minor Violations: Penalty reduced. Penalty of only fine for such violations prescribed.
3. Violation of other rules has been decriminalized.

Interest on delayed payment revised to 12%

• Interest on delayed payment revised from existing 24 per cent to 12 per cent.
• The rules relating to the period of mining leases granted to government companies and their payment have been included in the MCR, 2016.

Digital reporting

• Lessees having annual excavation plan of one million tonne or more or having leased area of 50 hectare or more are required to submit drone survey images of leased area and up to 100 meters outside the lease boundary every year.