Page 6 - The Mineral Development and Regulation Framework in India (English Version)
P. 6
Discussion Paper
and arbitrariness mainly due to the large number (MMDR Bill), was accordingly drafted in 2009–10 in
of approvals from various sectoral authorities, consultation with the stakeholders and introduced in
with each approval process having embedded Parliament in November 2011. The MMDR Bill 2011,
ambiguity and unclear discretion. The expected inter-alia, provided for the following regulatory and
flow of Foreign Direct Investment (FDI) into sectoral governance reform measures to support
exploration is not coming in because of the delays the reform in the concession grant system:
in the grant of concessions and perception of
insecurity of tenure. Setting up a scientific regulatory system through
National and State level Mining Regulatory
There is a huge backlog of applications for Authorities;
mining concessions; reportedly, over 60,000
applications are pending because of inability of Strengthening the sectoral technical agencies,
State Governments to decide the cases given the namely the Indian Bureau of Mines and the State
ambiguity and discretion in the existing system, Directorates;
and the lack of sectoral mechanisms to ensure
that State Governments decide cases within given Creation of a new revenue stream to directly
time limits. fund a Trust in each District, to be called the
District Mineral Foundation for the purposes of
Centre–State issues: States see the current method creating, managing, and maintaining local socio-
of allocation of concessions as not giving the economic infrastructure in the mining areas
States adequate revenues, since auction/bidding and providing for recurring payments to those
is not permissible. As such, they insist on value affected by mining- related operations; thus,
addition within the State or Joint Ventures with providing a safety net and new opportunities for
State Public Sector Units (PSU) in ways which livelihood generation;
may not be in furtherance of efficient and zero-
waste mining. Enabling registered co-operatives to obtain
mineral concessions on small deposits in order to
Benefit sharing with communities: As highlighted by encourage tribals and small miners to enter into
the Hoda Committee Report, traditionally, “the mining activities, thus enabling local communities
relationship between mining companies and local to directly participate in the exploitation of local
communities has a legacy of abuse and mistrust”. resources;
Compensation for lost land does not make project
affected people beneficiaries in the project. It Empowering the Central Government to
does not compensate for the lost livelihood institutionalize a statutory mechanism for
opportunities, and promote much less new ensuring sustainable mining with adequate
opportunities to share in the fruits of development, concerns for environment and socio-economic
which are expected to result from mining and issues in the mining areas including management
attendant activities. Exclusion of communities of cumulative and regional impacts, through a
from the benefit stream has resulted in difficulties National Sustainable Development Framework;
in obtaining a social licence to operate the mines.
Setting up of a National Mining Tribunal and
Legislative proposal State Mining Tribunals for redressal of grievances
against orders of Central Government or State
The existing law had to be brought in line with the Government, as the case may be, and in cases of
NMP 2008 and the governance issues mentioned delays in grant of mineral concessions;
above needed to be addressed. The Mines and
Minerals (Development and Regulation) Bill, i.e., Empowering the State Governments to set up
Special Courts for speedy prosecution of offences
relating to illegal mining, and to provide stringent
6 JANUARY 2015
and arbitrariness mainly due to the large number (MMDR Bill), was accordingly drafted in 2009–10 in
of approvals from various sectoral authorities, consultation with the stakeholders and introduced in
with each approval process having embedded Parliament in November 2011. The MMDR Bill 2011,
ambiguity and unclear discretion. The expected inter-alia, provided for the following regulatory and
flow of Foreign Direct Investment (FDI) into sectoral governance reform measures to support
exploration is not coming in because of the delays the reform in the concession grant system:
in the grant of concessions and perception of
insecurity of tenure. Setting up a scientific regulatory system through
National and State level Mining Regulatory
There is a huge backlog of applications for Authorities;
mining concessions; reportedly, over 60,000
applications are pending because of inability of Strengthening the sectoral technical agencies,
State Governments to decide the cases given the namely the Indian Bureau of Mines and the State
ambiguity and discretion in the existing system, Directorates;
and the lack of sectoral mechanisms to ensure
that State Governments decide cases within given Creation of a new revenue stream to directly
time limits. fund a Trust in each District, to be called the
District Mineral Foundation for the purposes of
Centre–State issues: States see the current method creating, managing, and maintaining local socio-
of allocation of concessions as not giving the economic infrastructure in the mining areas
States adequate revenues, since auction/bidding and providing for recurring payments to those
is not permissible. As such, they insist on value affected by mining- related operations; thus,
addition within the State or Joint Ventures with providing a safety net and new opportunities for
State Public Sector Units (PSU) in ways which livelihood generation;
may not be in furtherance of efficient and zero-
waste mining. Enabling registered co-operatives to obtain
mineral concessions on small deposits in order to
Benefit sharing with communities: As highlighted by encourage tribals and small miners to enter into
the Hoda Committee Report, traditionally, “the mining activities, thus enabling local communities
relationship between mining companies and local to directly participate in the exploitation of local
communities has a legacy of abuse and mistrust”. resources;
Compensation for lost land does not make project
affected people beneficiaries in the project. It Empowering the Central Government to
does not compensate for the lost livelihood institutionalize a statutory mechanism for
opportunities, and promote much less new ensuring sustainable mining with adequate
opportunities to share in the fruits of development, concerns for environment and socio-economic
which are expected to result from mining and issues in the mining areas including management
attendant activities. Exclusion of communities of cumulative and regional impacts, through a
from the benefit stream has resulted in difficulties National Sustainable Development Framework;
in obtaining a social licence to operate the mines.
Setting up of a National Mining Tribunal and
Legislative proposal State Mining Tribunals for redressal of grievances
against orders of Central Government or State
The existing law had to be brought in line with the Government, as the case may be, and in cases of
NMP 2008 and the governance issues mentioned delays in grant of mineral concessions;
above needed to be addressed. The Mines and
Minerals (Development and Regulation) Bill, i.e., Empowering the State Governments to set up
Special Courts for speedy prosecution of offences
relating to illegal mining, and to provide stringent
6 JANUARY 2015
