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Parliament passes  The Mineral Laws (Amendment) Bill 2020
COAL & MINING

Parliament passes The Mineral Laws (Amendment) Bill 2020

The Rajya Sabha and Lok Sabha recently passed The Mineral Laws (Amendment) Bill 2020 for amendments in Mines & Mineral (Development and Regulation) Act 1957 and The Coal Mines (Special Provisions) Act 2015. The Mineral Laws (Amendment) Bill 2020 will...

The Rajya Sabha and Lok Sabha recently passed The Mineral Laws (Amendment) Bill 2020 for amendments in Mines & Mineral (Development and Regulation) Act 1957 and The Coal Mines (Special Provisions) Act 2015. The Mineral Laws (Amendment) Bill 2020 will usher in a new era in the Indian coal and mining sector, especially to promote ease of doing business. Union Coal & Mines Minister Pralhad Joshi said that this Bill will transform the mining sector in the country, boosting coal production and reducing dependence on imports, according to a release by PIB.The amended provisions clearly provide that companies that do not possess any prior coal mining experience in India and/or have mining experience in other minerals or in other countries can participate in the auction of coal or lignite blocks. This will not only increase participation in auctions but facilitate the implementation of FDI policy in the coal sector.As per the PIB release, now, companies that are not ‘engaged in specified end-use� can also participate in auctions of Schedule II and III coal mines. The removal of the end-use restriction will allow wider participation in the auction of coal mines for a variety of purposes such as own consumption, sale or for any other purpose, as may be specified by the Central Government.The Bill also allows prospecting licence-cum-mining lease (PL-cum-ML) for coal or lignite, which increases the availability of coal and lignite blocks, and coal blocks of varying grades in a wide geographical distribution will be available for allocation.The successful bidders or allottees have now been entitled to utilise mined coal in any of its plants or plants of its subsidiary or holding company. Amendments also provide for allocation of the coal mine to the next successful bidder or allottee, subsequent to termination of its allocation along with the matters incidental to it. A provision has also been made for appointment of a designated custodian for management of the mines, apart from Schedule II mines, which have come under production and whose vesting or allotment order has been cancelled.With the amendments, environment and forest clearances along with other approvals and clearances will automatically get transferred to the new owners of mineral blocks for two years from the date of grant of the new lease. This will allow new owners to continue with hassle-free mining operations. During the period, they may apply for a fresh licence beyond two years, said the release.The auction of lease of mines can now be started before expiry of the lease period. This will enable the state government to take advance action for auction of mineral blocks so that the new lease holder could be decided before the existing lease expires. This will help in seamless production of minerals.The new provisions will also augment the exploration of deep-seated minerals and minerals of national interest by allowing Non-Exclusive Reconnaissance Permit holders to apply for composite licence or Mining Lease (PL-cum-ML).Various repetitive and redundant provisions of the MMDR Act and CMSP Act have also been omitted for ease of doing business.The Bill replaces the ordinance for amendment of the MMDR Act 1957 and CMSP Act, which was promulgated on January 10, 2020.

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