Why in news?
Parliament recently passed The Mineral Laws (Amendment) Bill, 2020 for amendments in Mines & Mineral (Development and Regulation) Act 1957 and therefore the Coal Mines (Special Provisions) Act, 2015
Key Provisions
· Composite license for prospecting and mining: a replacement sort of license, known as prospecting license-cum-mining lease has been introduced.
o presently, separate licenses ar provided for prospecting and mining of coal and coal, known as prospecting license,
and mining lease, severally.
o The new sort of license are a composite license providing for each prospecting and mining activities.
· Removal of restriction on finish-use of coal: corporations are liberal to use extracted mineral each for captive use of end use plants (power, steel, cement etc.) and business sale within the open market.
· Eligibility criteria for auction of coal and coal blocks: the businesses that don't possess any previous coal mining expertise in India however ar financially sturdy and or have mining expertise in alternative minerals or in alternative countries will currently participate in auction of coal/lignite blocks
· Reallocation once termination of the allocations: Such mines is also reallocated through auction or allotment as is also determined by the central government. The central government can appoint a delegated shielder to manage these mines till they're reallocated.
· previous approval of the central government isn't needed in granting of intelligence allow, prospecting license or mining lease in respect of the minerals, in sure cases: These cases are-
o Associate in Nursing allocation order has been issued by the Central Government.
o a notification of reservation of space has been issued by the Central Government or the authorities.
· Advance action for auction: State Governments are allowed for taking Associate in Nursing advance action for auction of the mining lease before the ending of the lease amount.
· Transfer of statutory clearances to new bidders: the varied approvals, licenses, and clearances given to the previous renter are extended to the undefeated bidder for a amount of 2 years.
Benefits
· Broadening the taking part in field: The act can modify corporations, that don't have any mining expertise or that aren't engaged in an exceedingly fixed end-use, to form bids in auctions aboard the established players within the market.
· Decrease in coal Imports: The effective mining sector can lead India to use its own natural reserves, rather than mercantilism coal.
· economical method of allocation: A bidding company might currently bid for a prospecting licence-cum-mining lease for coal and coal moreover, thereby streamlining the method of allocation.
· Removal of Superfluous Approvals: many approvals allotted by the Central Government at numerous stages successively resulted in delays and repetition of the approval method.
· sander Transitions: sure provisions are introduced within the MMDR Act which can facilitate simple transfer of mining operations by the competent authority from one allottee to a different.
· Attracting Investment: corporations having mining expertise in alternative countries will currently participate in auction of coal/lignite blocks.
· Promoting easy Doing Business: The act deregulates the mining sector and clearly focuses on creating it additional profitable.
Issues
· Dilution of Eligibility Criteria: Mining sector could be a terribly specific sector which needs experience and by removing previous expertise restriction the analysis of bidders can become tough.
· Natural resources are often misused: With removal of the top use restriction together with permitting 100% FDI may result in misuse by foreign players.
· can be prejudicial for Environment: Increasing usage of coal for energy or for producing of power and over mining might end in setting degradation. Polluter's pay principle is additionally missing.
· way forward for Coal India Ltd. is in doubt: gap from the world for personal players might finish monopoly of Coal India and government might lose its strategic quality.
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