2015 The act was amended by The
Mines and Minerals (Development and Regulation) Amendment Act, 2015 replacing the
ordinance promulgated on 12 January 2015. The bill sought to bring transparency to the allocation of mining licence process by auctions. In November 2014, the draft of the bill was released for public comments. On 12 January 2015, Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, was approved by the
President of India. It was the 7th ordinance by the
National Democratic Alliance government since it took power in May 2014. On 16 May 2014, the
Supreme Court of India cancelled licences of 26 mines in
Odisha state. These mines were being operating even though the state had not given them renewal leases. The state was given 6 months to resolve the issues. During this period, Odisha renewed 8 leases. On 6 January 2015, the
Government of Odisha decided to auction its remaining non-coal mining leases awaiting renewal. The state was granted 2 more months on 23 February to decide. However, introduction of the bill delayed Odisha's plans of auction. A National Mineral Exploration Trust will be set up to explore and promote non-coal minerals. It will have a starting fund of crore and will be funded by a 2% levy from mining license holders. The licences will have a validity of 50 years, compared to the previous 30 years. There will be no renewal of licences, only re-auction. The mining and prospecting-cum-mining licences may be transferred to another party by notifying the state government. The state government may charge a fees for such transfers.
Criticism In January 2015, after the ordinance was signed, a
mining industry lobby group Society of Geo-scientists and Allied Technologists (SGAT) said that the
prospecting-cum-
mining was useless as no one would apply for such a licence unless they had found a proven reserve by prospecting first.
2016 The Union Cabinet of India approved amendments in March 2016. The amendment will allow transfer of captive mining leases not granted through auction. Transfer of captive mining leases, granted otherwise than through auction, would allow mergers and acquisitions of companies and facilitate ease of doing business for companies to improve profitability and decrease costs of the companies' dependent on supply of mineral ore from captive leases. The transfer provisions will also facilitate banks and financial institutions to liquidate stressed assets where a company or its captive mining lease is mortgaged.
2024 The Supreme Court bench of nine members ruled that taxation powers on minerals and ores is exclusive domain of state governments. However, Parliament can impose upper bar to limit the taxation by states. MMDR Act is nothing to do with tax collection by the Union. It also ruled that royalty, which is in the domain of states, is not a tax . The power of states' taxation can extend on atomic minerals and dangerously inflammable resources (oil, natural gas, etc) covered in non-taxation (general) entries 6 and 53 of Union List respectively. However, the verdict while interpreting entry 54 of the
union list, has not clarified what is
public interest and when or how long it is to be applied. ==See also==