Cabinet Approves Proposal for Mineral Reforms, Will Strengthen Auction-only Regime: Sources

The Cabinet on Wednesday approved a proposal for mega mineral reforms, a move that will boost mineral production in the country and bring more mineral blocks into auction, according to sources. The reforms include removing the distinction between captive and non-captive mines and introduction of an index-based mechanism by developing a National Mineral Index for various statutory payments, among others. “The year 2021 will see hectic activity on the mining side because the reforms which have been in waiting for some time, they are likely to be approved in the month of January which will involve some changes in the MMDR Act and some changes in the rules, all meant to liberate the sector,” Mines Secretary Anil Kumar Jain had said. “It is going to bring into play a large number of mining blocks so the production in most of the minerals resources will see quantum jump because of these mines which will become available for interested parties in the calendar year 2021,” he had added Under the Aatmanirbhar Bharat scheme, the Centre had in May last year announced enhancing private investments in the mineral sector and bringing in other reforms. They are also aimed at resolving legacy issues to move towards an auction-only regime for allocation of mineral resources, removing the distinction between captive and non-captive mines, developing a transparent National Mineral Index and clarifying the definition of illegal mining, among others.