January 18, 2002

‘41’

MCR AND MCDR AMENDED FOR FACILITATION OF INVESTORS IN MINING SECTOR

    Following a full day session of the Tripartite Meeting of the Central Government, State Governments and the investors in the Mining Sector held on November 12, 2001 at New Delhi, Shri Ram Vilas Paswan, Minister of Coal and Mines after personally hearing the suggestions of the investors in the mining sector for removing the operational bottlenecks and paving the way for further investment in the mining sector took the initiative of getting the Mineral Concession Rules (MCR) 1960, and the Mineral Conservation and Development Rules (MCDR), 1988 amended on January 11, 2002. He called upon the State Governments to follow a transparent, free and fair policy in granting of mineral concessions, and reminded them that the Central Government expected that the performance of the States would justify the faith and trust imposed by the Centre.

The highlights of the amended provisions of the rules are as follows:

1. Under the amended provisions of the MCR, 1960, time limits have been prescribed for conveying a decision on an application for a mineral concession, which is 6 months for reconnaissance permits (PR), 9 months for prospecting licenses (PL) and 12 months for mining leases (ML). For any delay, the reasons would be recorded in writing.
2. Mining leases can not be granted unless a mining plan duly approved by the empowered authority is submitted. The authorities empowered to approve the mining plans would give a decision within 90 days, and such limits would also be applicable from the day modifications, if any, are carried out and submitted afresh to the empowered authorities.
3. Since December 1999, the State Governments are fully empowered to take decisions on first and any subsequent renewals of the mining lease. However, the Mines and Minerals (Development and Regulation) Act, 1957 has cast a duty upon the Central Government to ensure that all steps are taken for conservation and systematic development of minerals and for protection of environment. Accordingly it is now made necessary for the State Governments to consult the Indian Bureau of Mines (IBM) before granting second or subsequent renewal of mining lease in a time bound manner, and in case IBM does not give its comments within three months, it would be presumed that IBM has no objection to the renewal.
4. The provision of penalty under MCDR, 1988 have been made more stringent to ensure systematic and scientific mining.
5. The fee structure for various applications under MCR, 1960 and MCDR, 1988 have also been revised to make these pertinent to the cost of processing the applications.