Saturday, October 1, 2011

Mines and Mineral Development and Regulation (MMDR) Bill

The Mines and Minerals (Development & Regulation) Bill, 2011, has been approved by the Cabinet today, will replace a 54-year old law governing the sector.The main provisions of the bill are :

1)The Bill for the first time mandates coal companies to share 26 per cent of their net profits towards people residing in their project areas and non-coal miners to shell out money equivalent to royalty.

2)A National Mineral Regulatory Authority (NMRA) will be set up to combat illegal mining. The authority will be empowered to look into cases of illegal miningIt will have powers to investigate and prosecute offenders.

3)A Mineral Funds will be setup at national and state level for capacity creation.

4)This bill provides for consultation with local community before notifying an area for grant of mining leases.

5)The bill also provides for Imposition of a Central cess and a State cess.

6)Special Courts will be established at the State level for speedier disposal of the cases of illegal mining

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