Minerals Laws (Amendment) Ordinance, 2020

Jan 16, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Ministry of Mines on January 10, 2020, has issued the Minerals Laws (Amendment) Ordinance, 2020 to further amend the Minerals (Development and Regulation) Act, 1957 and Coal Mines (Special Provisions) Act, 2015.

The amendments in the Minerals (Development and Regulation) Act, 1957 are as under:

i.Insertion of Sections, namely:

a.Section 4B: Central Government may prescribe such conditions for efficiency in production by the holders of mining leases.

b.Section 8B: Provisions for transfer of statutory clearances

ii.Under Section 5(1) which specifies the restrictions on the grant of prospecting licenses or mining leases, after the proviso, another proviso has been inserted which specifies the conditions where previous approval of the Central Government will not be required for grant of reconnaissance permit, prospecting licence or mining lease.

iii.Under Section 8A which specifies period of grant of a mining lease for minerals other than coal, lignite and atomic minerals, proviso has been inserted where State Government may take an advance action for auction of the mining lease before the expiry of the lease period.

iv.Under Section 11, in the marginal heading after the words “or mining lease”, the words “or prospecting licence-cum-mining lease in respect of coal or lignite” has been inserted.

The amendments to the Coal Mines (Special Provisions) Act, 2015 are as under:

i.Under Section 5(1) which specifies the procedure for allotment of mines to Government Companies or Corporations:

a.For the words “or mining lease in respect of any area containing coal”, the words “mining lease or prospecting licence-cum-mining lease in respect of such Schedule I coal mine” has been substituted.

b.In the first proviso, for the words “in accordance with the permit, prospecting licence or mining lease, as the case may be”, the words “as may be determined by the central Government” has been substituted.

ii.Under Section 9 which specifies the priority of disbursal of proceeds, in the opening portion, for the portion beginning with the words “The proceeds arising out of land” and ending with the words “as may be prescribed.”, the following shall be substituted, namely:

The compensation for land and mine infrastructure in relation to a Schedule I coal mine as valued in accordance with section 16 shall be deposited by the successful bidder or allottee with the nominated authority and shall be disbursed maintaining, inter alia, the following priority of payments and in accordance with the relevant laws and such rules as may be prescribed.”

It will come into force at once.

[Ordinance No. 1 of 2020]



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