The Mineral Laws (Amendment) Bill, 2020

Mar 13, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Parliament on March 12, 2020, has passed the Mineral Laws (Amendment) Bill, 2020 to further amend the Mines and Minerals (Development and Regulation) Act, 1957 and Coal Mines (Special Provisions) Act, 2015. This Bill facilitates seamless transfer of all valid rights, approvals, clearances, licenses and the like for a period of two years to a new lessee in case of minerals other than coal, lignite and atomic minerals. The Bill will also help to remove end users restrictions and permits the foreign direct investment in entities engaged in coal mining activities for sale of coal.

The major changes brought about by the Bill are discussed below:

1. For grant of reconnaissance permit, prospecting licence or mining lease, previous approval will of the Central Government not be required. The removal of restrictions will enable other players also to participate in competitive bidding for Mining Concessions, subject to meeting the bidding criteria specified therein.

2. The Government removes the end-use restrictions (only companies engaged in a 'specified end-use' were considered eligible to bid in the auction of Mining Concessions) on minerals.

3. The use of coal also expands in the plants of the subsidiary or holding company of the allottees along with the use of coal in the allottee's plants engaged in common specified end-use.

4. The allottees will receive compensation for the land and mine infrastructure under reallocation of coal mines.

5. The holder of an non-exclusive reconnaissance permit (NERP) may make an application for grant of mining lease or prospecting license-cum-mining lease through the auction process as per the prescribed procedure, after undertaking specified levels of exploration.

This Bill repeals the Mineral Laws (Amendment) Ordinance, 2020 which was promulgated on January 11, 2020.

[Bill No. 60 of 2020]


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