Union Ministry of Mines on Tuesday amended the Minerals (Mining by Government Compes), Rules 2015 allowing the State government to extend any lease granted to the government company by 12 months prior to the expiry of the lease.
"In a step towards ensuring raw material security and seamless renewal of mining leases allocated to the government compes, Ministry of Mines on Tuesday amended the Minerals (Mining) by Government Compes) Rules, 2015 substituting "may, for reasons to be recorded" in rule 3, in sub-rule (2) and rule 4, in sub-rule (3) with "shall, for reasons to be recorded," said an official statement.
"This implies that for all mining leases for minerals granted to the government compes, the State government upon an application made to it in this regard by the government company or corporation at least twelve months prior to the expiry of the mining lease, shall, for reasons to be recorded in writing, extend the period of the mining lease for further period of up to twenty years at a time," added the statement.
This issue was taken up by Minister of PNG and Steel Dharmendra Pradhan with Minister of Mines Pralhad Joshi.
In another recent order, SAIL has also been allowed to offload in a year up to a quantity equivalent to a maximum of 25 per cent of total iron ore production in the previous year subject to clearance from the respective State governments, where the mines are located, after following due procedure.
It is pertinent to mention here that as per the provision of Section 8A(6) of Mines and Minerals (Development & Regulation) Act, 1957 (in short, MMDR Act, 1957), the lease of 31 working mines of iron ore is expiring on March 31, 2020.
Recent orders passed by the Ministry of Mines are important steps towards ensuring raw material security for the Indian steel industry and effective management of the situation in wake of probable disruptions in March 2020. It will also ensure the price stabilization of raw materials and will have a positive effect on the secondary steel sector.
( With inputs from ANI )