The National Mineral Policy cleared by the Cabinet over a month back continues to remain in paper, with the mines ministry still unable to arrive at a consensus on a variety of issues with mineral rich states. In consonance with the policy, the Mines and Mineral Development and Regulation Act (MMDR Act) requires a host of amendments. The working group set up for this purpose is, however, still working on a final Bill. Once the Bill is drafted, it will be cleared by the Cabinet and later introduced in Parliament.

“The Bill is being prepared in consultation with the states and we are ensuring that all voices are heard. The mining policy remains the broad framework in accordance to which new applicants need to firm up their plans henceforth. But, provisions will only come into effect only after the MMDR Act is amended,” said a senior Mines ministry official.

“The new policy has proposed a host of reforms like seamless transition from reconnaissance to prospecting to mining lease and an independent tribunal for attending to applicants’ grievance for which provisions have to be made in the Act. Further, terms like Large Area Prospecting License have been redefined while rights of mine owners in case of delays have been expanded,” the official added.

Though the mines minister said that the states had been taken into confidence while framing the policy, sharp differences persist between the Centre and the states, especially on matters relating to authority. Mineral rich states such as Jharkhand, Chattisgarh, Orissa and Karnataka alleged that the new policy cleared by the Cabinet did not address their concerns. Proposals such as seamless transition of leases and export of iron ore have seen differences between the Centre and the states. “It is fine to consider the whole country as one in principle, but in reality, mineral is state property and it is in our best interest that it be utilised in the best possible manner in our own state,” an official with the Jharkhand government said.

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