PANAJI
In a move aimed at speeding up the operationalisation of auctioned mineral blocks, the Central government has proposed amendments to allow partial execution of mining leases by separating forest and non-forest areas of a mineral block.
The Union Ministry of Mines has proposed amendments to the Mineral (Auction) Rules, 2015, under the Mines and Minerals (Development and Regulation) Act, 1957 and for which stakeholders including State government views are sought.
“The Ministry is considering further amendment to the Mineral (Auction) Rules 2015 to introduce various provisions to fast-track operationalization of auctioned mines, like allowing part execution of mining lease separately for forest and non-forest areas, carrying out various auction process through a unified mining portal, automatic issue of letter of intent, reducing the period from issuance of letter of intent and execution of mining lease, increasing upfront payment for certain mineral, etc,” the Ministry said in a communication to the State governments.
As per the amendment, a preferred bidder may be permitted to exclude a portion of a mineral block that falls under forest land, provided such portion is located at the edge or corner of the block and accounts for less than 20 per cent of the total estimated mineral resources.
Alternatively, the rules allow for execution of mining leases in parts --separately for non-forest and forest areas -- if the State government is satisfied that the mineral block does not contain deep-seated minerals.
In cases of part execution, the Mine Development and Production Agreement (MDPA) will be signed in two stages. The first agreement will cover the non-forest area, enabling early commencement of mining operations, while the second will be executed for the entire block after obtaining all statutory clearances, approvals and no-objection certificates for the forest portion.
The Ministry has also proposed the introduction of a unified digital portal to streamline the mineral auction process, with the objective of ensuring timely completion of auctions and faster issuance of letters of intent.
Officials said the proposed amendments are expected to remove procedural bottlenecks, reduce delays caused by forest clearances and provide a significant boost to the mining sector by enabling quicker start of operations in auctioned blocks.
In Goa, so far, of the total 12 mineral blocks auctioned, only five have commenced the operations while seven are in process of acquiring environmental clearance, forest clearance and other statutory permissions.
