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Monday, March 14, 2011

Indian government update on land for mining to private companies

Monday, 14 Mar 2011

Mr Dinsha Patel Indian minister of state (independent charge) for mines informed the Lok Sabha that the state governments are competent to grant mineral concessions including Reconnaissance Permit, Prospecting Licence and Mining Lease under the provisions of the Mines and Minerals Act 1957 subject to prior approval of the central government.

Subsequent to the prior approval of the central government, mining leases etc are executed by the state governments with the mining agencies after following the due procedures ie obtaining forest and environment clearances and approval of mining plan from the Indian Bureau of Mines.

Whilst processing the proposals recommended by the State Governments for prior approval of the Central Government, the Ministry of Mines examines the same in the light of the provisions of the MMDR Act, 1957, the Mineral Concession Rules, 1960 and the guidelines framed in this regard and where necessary, in consultation with the State Governments and specialized agencies like the Indian Bureau of Mines, the Geological Survey of India and the Department of Atomic Energy. The Ministry of Mines is conscious of its responsibility to ensure that the mineral concession regime functions in a transparent and efficient manner. In this regard, the Ministry has, in consultation with the State Governments, issued the following guidelines:-

1. Comprehensive guidelines dated June 24th 2009, in order to bring more clarity in processing the mineral concession proposals. The guidelines also seek to ensure application of uniform criteria by the State Governments while examining and recommending proposals to the Central Government.

2. Guidelines dated February 9th 2010 on ‘special reasons’ to be adopted by all State Governments while recommending a mineral concession proposal in favour of a later applicant in a non notified area.

3. Guidelines dated October 13th 2010 regards maps in order to ensure that the areas recommended by the State Governments for mineral concessions are clearly demarcated.

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