Question : Amendments to MMDR Act- 1957

(a) whether the Government proposes to amend the Mines and Minerals (Development and Regulation) Act, 1957 to ensure that all mining rights for major minerals are auctioned transparently;

(b) if so, the details thereof; and

(c) the extent to which the amendments in the said Act are likely to prevent illegal transfer of captive lease?

Answer given by the minister

(a) to (c): The Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 was amended through the MMDR Amendment Act, 2015, which is deemed to have come into force with effect from 12th January, 2015.

The most important provision of the MMDR Amendment Act, 2015 is the grant of mineral concessions for major minerals through auction by competitive bidding which is a transparent and non-discriminatory method for grant of mineral concessions.

The MMDR Amendment Act, 2015 provided for the transfer of mineral concessions which are granted through auction only.

The MMDR Act, 1957 was further amended through the MMDR Amendment Act, 2016 to allow transfer of captive mining leases granted otherwise than through auction for ease of doing business. Subsequently, the Minerals (Transfer of Mining Lease Granted Otherwise than through Auction for Captive Purpose) Rules, 2016 were framed and notified in the Official Gazette vide notification No. G.S.R. 560(E) dated 30th May, 2016. The transfer of a mining lease granted otherwise than through auction being used for captive purpose is allowed only under the provisions of the said rules.

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