MINES AND MINERALS (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2010
(1) This Act may be called the Mines and Minerals (Development and Regulation) Amendment Act, 2010.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
In the Mines and Minerals (Development and Regulation). Act, 1957 (67 of 1957) (hereinafter referred to as the principal Act), after section 11, the following section shall be inserted, namely:-
"11A. Procedure in respect of coal or lignite.-The Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal or lignite, select, through auction by competitive bidding on such terms and conditions as may be prescribed, a company engaged in,-
(i) production of iron and steel;
(ii) generation of power;
(iii) washing of coal obtained from a mine; or
(iv) such other end use as the Central Government may, by notification in the O
The Mines and Minerals (Development and Regulation) Amendment Act, 2010 (Act No. 34 of 2010) introduced significant amendments to the principal Mines and Minerals (Development and Regulation) Act, 1957. Section 2 of this Amendment Act deals with the amendment of the definition clause and related provisions in the principal Act, aimed at strengthening the regulatory framework for mineral development and addressing illegal mining activities.
Section 2 of the Mines and Minerals (Development and Regulation) Amendment Act, 2010 pertains to the amendment of Section 2 of the principal Act, which contains the definitions. The Amendment Act brought changes to various definitions and also inserted new provisions, including Section 11A, which deals with the allocation of areas for mining leases or composite licences through auction.
The scope of Section 2 of the Amendment Act extends to:- Regulation of mines and mineral development across India- Preservation of natural environment in mining areas- Control of floods and prevention of pollution related to mining activities- Avoiding danger to public health and safety in mining operations
The Amendment Act introduced stringent penalties for illegal mining activities:- Monetary Penalty: Increased from Rs. 25,000 per hectare to Rs. 5 lakh per hectare- Imprisonment: Term of imprisonment increased from 2 years to 5 years [Source: "Stringent Penalties for Illegal Mining Activities"]
Legislative Intent - The Amendment Act seeks to streamline the process of auctioning licenses for mines and strengthen the regulatory framework for mineral development. [Source: "The principal object behind the Amendment Act is to streamline the process of auctioning the licenses of mines"]
Central Government Authority - The Central Government is empowered to grant reconnaissance permits, prospecting licences, or mining leases in respect of areas containing coal and other specified minerals. [Source: "The Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal"]
Standard Lease Duration - The amendment established a standard 50-year lease duration for non-coal and non-atomic minerals, fundamentally altering concession timelines. [Source: "This amendment fundamentally altered concession timelines by establishing a standard 50-year lease duration for non-coal and non-atomic minerals"]
Prospecting Operations Definition - The Act clarifies that prospecting includes regional, aerial, geophysical, or geochemical surveys and geological mapping, but does not include pitting operations. [Source: "prospecting of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping, but does not include pitting"]
Government Company Allocation - Section 2 inserted new provisions allowing allocation of mining areas to government companies or corporations for mining operations. [Source: "Section 2 - Insertion of new section 11A ... where such area is considered for allocation to a Government company or corporation for mining"]
Royalty Obligations - Holders of mining leases granted on or after the commencement of this Act are required to pay royalty in respect of any mineral removed or consumed. [Source: "The holder of a mining lease granted on or after the commencement of this Act shall pay royalty in respect of any mineral removed or consumed by"]
Overriding Effect - The Act contains provisions that override other existing laws for the purpose of granting mining leases or composite licences. [Source: "Notwithstanding anything contained in this Act, the Central Government shall, for the purpose of granting mining lease or composite licence"]
District Mineral Foundation - The Amendment Act introduced provisions for District Mineral Foundation to work for the interest and benefit of persons and areas affected by mining-related operations. [Source: "The object of the District Mineral Foundation shall be to work for the interest and benefit of persons, and areas affected by mining related operations"]
Environmental Protection - The Act includes provisions for the regulation of mines and mineral development, preservation of natural environment, control of floods, and prevention of pollution. [Source: "regulation of mines and minerals development, preservation of natural environment, control of floods, prevention of pollution, or to avoid danger to"]
Application to Specific Minerals - Section 2 provisions apply to minerals other than those specified in Part A and Part B of the First Schedule, with specific rules governing their allocation. [Source: "The provisions of this section shall apply to minerals other than those specified in Part A and Part B of the First Schedule"]
Commencement Provisions - The Amendment Act specifies that it shall come into force on such date as the Central Government may appoint by notification in the Official Gazette. [Source: "It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint"]
Enhanced Deterrence - The significant increase in penalties (from Rs. 25,000 to Rs. 5 lakh per hectare and imprisonment from 2 to 5 years) reflects the legislature's intent to curb illegal mining activities through enhanced deterrence. [Source: "Stringent Penalties for Illegal Mining Activities. 25 thousand per hectares to Rs. 5 Lakh per hectare and the term of imprisonment has been increased from 2 years to 5 years"]
Optimal Resource Utilization - The amendment enables miners to ensure optimal mining of mineral resources while reducing environmental hazards and increasing safety in mine workings. [Source: "This will enable the miners to ensure optimal mining of mineral resources, reduce environment hazards and increase safety in mine workings"]
Subsidiary Legislation - The Central Government is authorized under the Act to make rules for carrying out the purposes of the Act, particularly regarding grant of mineral concessions. [Source: "The Central Government may, for the purpose of granting reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal"]
Maritime Application - The Act also provides for development and regulation of mineral resources in territorial waters, continental shelf, and exclusive economic zone. [Source: "The OAMDR Act provides for development and regulation of mineral resources in the territorial waters, continental shelf, exclusive"]
In section 13 of the principal Act, in sub-section (2), after clause (c), the following clause shall be inserted, namely:-
"(d) the terms and conditions of auction by competitive bidding for selection of the company under section 11A;".
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