By Our Correspondent
BHUBANESWAR/NEW DELHI: Union Mines, Coal and Parliamentary Affairs Minister Pralhad Joshi on Thursday claimed that Minerals (Evidence of Mineral Contents) Second Amendment Rules, 2021 and the Mineral (Auction) Fourth Amendment Rules, 2021 to amend the Minerals (Evidence of Mineral Contents) Rules, 2015 [MEMC Rules] and the Mineral (Auction) Rules, 2015 [Auction Rules], respectively will boost both production and supply of minerals across the Country.
In a series of tweets, Union Minister Joshi said taking forward Mineral Reforms, amendment to the MEMC Rules and Mineral Auction Rules have been notified.Now any individual can carve out mineral blocks based on the available geoscience data and request the state govt for auction of Composite licence.
“Once the proposal is received concerned State Govt will examine & approve such blocks. On recommendation from State, it will be notified.As an incentive to the proposer for identifying mineral blocks, 50% discount will be offered on the bid security amount for proposed blocks.This amendment will encourage more participation in mineral auction and promote competition. As a result, mineral exploration will get a boost thereby increasing production and mineral supply in the country,” Union Minister Pralhad Joshi tweeted @JoshiPralhad.
It may be noted here that the Ministry of Mines has notified the Minerals (Evidence of Mineral Contents) Second Amendment Rules, 2021 and the Mineral (Auction) Fourth Amendment Rules, 2021 to amend the Minerals (Evidence of Mineral Contents) Rules, 2015 [MEMC Rules] and the Mineral (Auction) Rules, 2015 [Auction Rules], respectively, Union Mines Ministry said.
The amendment rules have been framed after extensive consultations with the State Governments, industry associations, miners, other stakeholders and general public.
Amendment in the MEMC Rules will enable any person, who is intending to participate in auction, to propose suitable blocks for auction for composite licence where mineral potentiality of the blocks has been identified based on the available geoscience data. A committee constituted by State Government shall assess the mineral potentiality of the blocks so proposed and recommend the block for auction. Further, amendment in the Auction Rules provide that in case the blocks proposed by any person are notified for auction, the said person would be provided incentive of depositing only half of the bid security amount in auction of the blocks proposed by him.
These amendments would encourage more participation in auction and promote competition. This will facilitate State Governments in identifying more blocks for auction of composite licence.
Background:
The Minerals (Evidence of Mineral Contents) Rules, 2015 have been recently amended in June, 2021, inter alia, to provide for auction to grant a composite licence in respect of areas where at least Reconnaissance Survey (G4) level has been completed or where mineral potentiality of the block has been identified based on the available geoscience data but resources are yet to be established. These amendments were aimed at identifying more mineral blocks for auction and thereby increasing pace of exploration and production resulting in improving the availability of minerals in the country and increase employment in the sector.
Simultaneously, the Mineral (Auction) Rules, 2015 were amended, inter alia, to prescribe bid security, performance security and other eligibility conditions to enable auction of such blocks for composite licence. Geological Survey of India (GSI) has also made freely available the database of baseline geoscience data for geological potential area in OCBIS portal for assistance of prospective bidders and other stakeholders.
The present amendment in the Rules will supplement the recent policy reforms taken in the mineral sector and facilitate auction of more blocks, thereby increasing production and mineral supply in the country.
