Is the Mines Ministry preparing an entirely new legislation and consigning the existing MMDR Act to oblivion in order to fructify the objectives of the new national mineral policy? That seems to be the case as the ministry seems to be veering towards the view that the existing act may simply be inadequate in reflecting the changing priorities of the mineral sector. The new legislation is set to be introduced in the winter session of Parliament.

The ministry is likely to adhere to the broad tenets of the Hoda Committee report while doing so, ministry sources said. The committee headed by former Planning Commission member Anwarul Hoda, while reviewing the Mineral Policy 1993, had suggested encouraging investment in exploration and changes in procedures for granting mineral concessions. It also extended quite a few suggestions for amending the Mines and Minerals (Development and Regulation) act 1957, but the ministry feels that the law is too archaic and “needs complete overhaul to meet the growing needs of minerals, especially that of iron ore in the country,” sources said, So mines minister B K Handique has favoured the enactment of a new legislation for the purpose. “The draft legislation is being finalised and is likely to be brought before the Parliament in its winter session,” he said.