DAILY NEWS ANALYSIS

GS-III : Economic Issues Mine and minerals

27 March, 2021
5 Min Read

Minerals (Development and Regulation) Amendment Bill, 2021

This bill was introduced to streamline the renewal of the auction process for minerals and coal mining rights.

What are the key changes?

The amendment proposes to allow captive miners of both coal and other minerals to sell up to 50 per cent of their production after meeting the requirements of the end-use plant and on paying additional royalty to the state government.
- Operators are currently only allowed to use coal and minerals extracted from captive mines for their own industrial use.
- Experts note that this increased flexibility would allow miners to maximise output from captive mines as they would be able to sell output in excess of their own requirements.
The amendment also proposes to fix additional royalty payments to states for the extension of mining leases for central public sector enterprises.
- Disagreements over the additional royalty to be paid by state-owned NMDC to the Karnataka government for the extension of mining rights at the Donimalai mine had led to NMDC suspending operations at the mine for over two years.
- NMDC recently resumed operations after an interim agreement on the additional royalty to be paid to the Karnataka government.
Experts noted that state governments may object to the fixing of an additional royalty to be paid by CPSEs for such extensions as this may lead to lower revenues compared to a transparent auction process.
Another key change the Bill proposes is to empower the central government to conduct auctions or re-auction processes for the grant of a mining lease if a state government fails to complete the auction process in a specified period, decided after consultations between the Centre and state.
Experts noted that industry players may welcome the move as it would likely lead to greater transparency in the auction process as there is a perception that state governments may in some cases prefer some bidders, and try to delay or cancel mining rights if their preferred bidders do not win mining rights.

Could the amendment face legal challenges?

Experts said the amendment if passed, was likely to face legal challenges, particularly from state governments where the BJP and its allies are not in power.
“If an act is passed in which any state government’s discretionary power is taken away or their rights or benefits are infringed.

Source: IE

Join Our Telegram

National Bank for Financing Infrastructure and Development Bill, 2021

The Insurance (Amendment) Bill, 2021

Pradhan Mantri Suryodaya Yojana

06 Feb, 24
SHARE

Recently, Prime Minister announced Pradhan Mantri Suryodaya Yojana under which 1 crore households will get rooftop solar power systems. India’s Status of Current Solar Capacity India currently stands at 4th place globally in solar power capacity. As per Ministry of New an

Foreign Contribution Regulation Act (FCRA)- NGO

06 Feb, 24
SHARE

The Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled this month. What is FCRA? Key provisions of FCRA, 2010 Key aspects Description

Voice clone-AI

06 Feb, 24
SHARE

Voice clone fraud has been on the rise in India. AI voice cloning – It is the process of creating a synthetic replica of a person’s voice through machine learning and speech synthesis technology.It is called as voice deepfakesor audio deepfakes. Objective – To achieve a high level of na

Science communication- how to promote

06 Feb, 24
SHARE

Steps taken by India to promote Science Communication Publications and Information Directorate (PID) - An organisation under Council of Science and Industrial Research (CSIR) established in 1951 for publishing and disseminating scientific information in India. National science magazines- The PI

Universal Basic Income (UBI)- Analysis

05 Feb, 24
SHARE

Universal Basic Income (UBI) can strengthen welfare architecture and unlock the nation’s latent demographic potential. UBI - It is an income support mechanism typically intended to reach all or a very large portion of the population regardless of their earnings or employment status. Objective- To provide enough to co

Quick Links Testimonials FAQ

Crash Course

Regular Modules 2024

Mains

Optional

Minerals (Development and Regulation) Amendment Bill, 2021

Minerals (Development and Regulation) Amendment Bill, 2021

Pradhan Mantri Suryodaya Yojana

Foreign Contribution Regulation Act (FCRA)- NGO

Voice clone-AI

Science communication- how to promote

Universal Basic Income (UBI)- Analysis

DNA

06 Feb,2024

GS-III

PT Pickups

Toppers

Search By Date

Top Editorials

UPSC Courses

Saarthi Mentorship Programme

Important Tags

Articles:Geography And Environment

Articles: History Culture Society

Articles: Governance & National Issues

Articles: IR & IO

Articles: Economic Development & Economic Issues

Articles: S&T Internal Security

Articles: Ethics & Others

Articles: Others

Newsletter Subscription

SMS Alerts

Important Links