Parliament Approves Key Amendments to Mining Regulations

The Indian Parliament has approved significant amendments to the Mines and Minerals (Development and Regulation) Act, a move aimed at enhancing the country’s mining sector and boosting revenues. The amendments were passed on Tuesday, with Union Coal and Mines Minister G Kishan Reddy addressing the upper house, the Rajya Sabha, to outline the expected benefits of these reforms.

Minister Reddy highlighted the financial transformation in the mining sector over the past decade, noting that state governments previously earned Rs 68,000 crore from mining activities. Today, that figure has surged to Rs 6.85 lakh crore, demonstrating the impact of recent reforms. Additionally, he mentioned that increased domestic coal production has helped the country save approximately Rs 60,000 crore in foreign exchange outflow.

Growth in Mineral Production

Reddy pointed out the substantial growth in iron ore production as a key indicator of the sector’s expansion. In 2014, iron ore production was recorded at 152 million tonnes. By the latest figures, this has nearly doubled to 289 million tonnes. This impressive increase underlines the effectiveness of the reforms implemented in the mining industry.

The latest amendments to the Mines and Minerals (Development and Regulation) Act include several notable changes. One significant proposal is to enhance contributions from mining lease holders to a dedicated trust that will fund exploration of critical minerals and the development of supply chains. This initiative aims to bolster the country’s ability to secure and manage essential mineral resources.

Moreover, the amendments allow for the accrued funds to be utilized for overseas acquisitions of critical mineral assets. This strategic move is designed to ensure that India can maintain a steady supply of necessary minerals for its growing economy.

Enhanced Oversight and Future Prospects

The amendments also introduce provisions for operating a domestic minerals exchange, which is expected to streamline trading activities within the sector. Minister Reddy announced plans for a comprehensive audit of the District Mineral Foundation (DMF) expenditures. This audit aims to ensure that funds are utilized effectively and contribute to the development of local communities affected by mining activities.

These changes reflect the government’s commitment to fostering growth in the mining sector while ensuring sustainable practices and improved financial returns for state governments. As India continues to expand its mining capabilities, the focus on critical minerals will play a pivotal role in supporting economic development and enhancing national security.