MMDR ACT

 What is MMDR Act?

The mines and mineral act(1957) is an act of the parliament of India ,enacted to regulate the mining sector in India.

It was amended  .in 2015,2016,2021 and 2022.

This act forms the basic frame work of mining regulation in India.

The MMDR amendment 2021

Removing the distinction between captive and merchant mines .It allows all captive mines to sell up to 50% of minerals produced during the year after meting the requirement of attached plant .All future auctions will be without any end use restriction.

Captive mines

They are mines that are owned by companies .The coal or mineral produced from these mines is for the exclusive use of the owner company of the mines. The company can't sell coal or mineral outside . Some electricity generation companies used to have captive mines.

Merchant mines

Also called non captive mines. Here the coal or mineral produced can be used for it's own consumption or can be sold out side.

Why MMDR?

These rules provide the framework granting concessions for major minerals through an online auction process. This act  also defines requirement  for labour safety and working conditions in mines and contains provisions for the management and conduct of mining operations .

 Minor minerals 

• Boulder
• Shingle
• Chalcedony
• Pebbles
• Lime shell
• Kankar and limestone
• Brick earth
• Marble
• Sand
• Bentonite
• Slate 
• Quartzite
• Sand stone e.t.c 

Major minerals

• Lignite
• Uranium
• Gold
• Coal
• Tungsten
• Lead -Zinc
• Magnesium
• Diamond
• Iron-Ore

Impact of amendment

1. Major boost to auction of minerals.
2. Increased production.
3. Improved ease of doing business.
4.  Increased contribution of mineral production to GDP.

Recent context

The union cabinet had also approved the amendment to second schedule of the MMDR act in march 2022 to specify the royalty rates of certain minerals including potash, emerald and platinum to ensure better participation in the auction.

Kerala Government has opposed the new set of proposed amendment to MMDR act, saying that the amendments are breach of state's rights, as minerals come under the purview of states.

The center had invited suggestions from the public to draft amendments to MMDR act.

so friends any suggestions?