Page 7 - The Mineral Development and Regulation Framework in India (English Version)
P. 7
Discussion Paper
punishments for contravention of certain provisions reconnaissance has been done or where earlier
of the proposed legislation; reconnaissance has failed to detect mineralization.
Unlike the current system of Reconnaissance
Empowering the State Governments to debar a Permits, the RLs would be “non-exclusive” rather
person convicted for illegal mining from obtaining than on a first-come-first-served basis, for reasons
concessions in future, and to cancel existing well brought out in the Hoda Committee Report.
concessions in his favour, to disincentivize illegal
mining; A new Concession instrument called the High
Technology Reconnaissance cum Exploration
Empowering the Central Government to intervene Licence (HTREL), designed specifically to attract
in the cases of illegal mining where the concerned high risk venture capital to locate minerals
State Government fails to take action against illegal occurring in depth and needing high-tech
mining; and importantly; geophysics for their discovery. To incentivize risk
takers, the licence would have to be on a first-
That while applications that have acquired a vested come-first served basis, with transferability and
right on account of some previous approval will assurance of mining rights in case of a mineral
be protected, all other pending applications will discovery.
be extinguished, and the new procedure of the
Act shall be applied uniformly in future. Prospecting Licences, which unlike the current
system of either first-come-first-served or
invitation to apply, would also be given out on a
bidding basis. As in MMDR Act, 1957, a prospecting
licence would include general exploration and
detailed exploration.
Mining Leases, which in the MMDR Bill can
only be obtained through the prospecting route,
unless it is put to bid on the basis of the data
already available. Currently, mining leases can be
directly applied for on the basis of “evidence of
mineralization”, which disincentivizes scientific
prospecting.
The Mines and Minerals (Development and Regulation)
Bill 2011 after introduction in the Parliament in
The main Schema of the concession grant system
proposed in the Bill was as follows:
Reconnaissance Licences (RL) to locate
mineralization in areas where either no
JANUARY 2015 7
punishments for contravention of certain provisions reconnaissance has been done or where earlier
of the proposed legislation; reconnaissance has failed to detect mineralization.
Unlike the current system of Reconnaissance
Empowering the State Governments to debar a Permits, the RLs would be “non-exclusive” rather
person convicted for illegal mining from obtaining than on a first-come-first-served basis, for reasons
concessions in future, and to cancel existing well brought out in the Hoda Committee Report.
concessions in his favour, to disincentivize illegal
mining; A new Concession instrument called the High
Technology Reconnaissance cum Exploration
Empowering the Central Government to intervene Licence (HTREL), designed specifically to attract
in the cases of illegal mining where the concerned high risk venture capital to locate minerals
State Government fails to take action against illegal occurring in depth and needing high-tech
mining; and importantly; geophysics for their discovery. To incentivize risk
takers, the licence would have to be on a first-
That while applications that have acquired a vested come-first served basis, with transferability and
right on account of some previous approval will assurance of mining rights in case of a mineral
be protected, all other pending applications will discovery.
be extinguished, and the new procedure of the
Act shall be applied uniformly in future. Prospecting Licences, which unlike the current
system of either first-come-first-served or
invitation to apply, would also be given out on a
bidding basis. As in MMDR Act, 1957, a prospecting
licence would include general exploration and
detailed exploration.
Mining Leases, which in the MMDR Bill can
only be obtained through the prospecting route,
unless it is put to bid on the basis of the data
already available. Currently, mining leases can be
directly applied for on the basis of “evidence of
mineralization”, which disincentivizes scientific
prospecting.
The Mines and Minerals (Development and Regulation)
Bill 2011 after introduction in the Parliament in
The main Schema of the concession grant system
proposed in the Bill was as follows:
Reconnaissance Licences (RL) to locate
mineralization in areas where either no
JANUARY 2015 7
