Centre to control mining in the country from now on

NEW DELHI: The Centre will gain greater control over the natural mineral resources of states after the Mines and Minerals (Development and Regulation) Amendment Bill was passed by Parliament. The Rajya Sabha passed the Bill by a voice vote on Thursday, a day after it was cleared by the Lok Sabha.

The new provisions are expected to have a significant impact on Kerala, where mining is a major source of non-tax revenue. The Bill, which aims to increase the production of critical minerals, could affect the mining of granite, laterite, sand and clay in the state.

The Centre, however, said the Bill aims to reduce the heavy tax burden on the mining sector. It said states impose taxes and cesses at varying rates after mining operations begin, increasing mining costs and discouraging mineral extraction. The amendments to the Mines and Minerals (Development and Regulation) Act, 1957, are also aimed at ensuring the availability of minerals for industrial use and opening up the sector to private investment.

Private mining in Kerala

1. Under the new provisions, the Centre will have the authority to lease out areas, including mineral-rich regions such as Chavara, for the extraction of rare and critical minerals.
2. The Centre will have greater control over mineral mining in coastal and forest areas, potentially opening up opportunities for private companies to mine minerals along Kerala's coast.
3. The state's powers over revenue from mineral-bearing land could also be affected, with the Centre gaining greater control over the collection of royalties, cesses and licence fees.

More freedom for mining and sale

Existing mining leaseholders will be allowed to extract minerals such as lithium, graphite, nickel, cobalt, gold and silver without paying additional royalties or charges. The Bill also allows them greater freedom to sell the minerals they extract. The Centre said the Bill is aimed at curbing illegal mining and reducing India's dependence on imports of strategic and critical minerals to promote self-reliance.

"The Bill would help reduce illegal mining and ensure greater self-sufficiency in strategic minerals."
-Kiren Reddy, Union Minister

"The Bill was introduced without consulting the states and without considering a Supreme Court ruling related to the taxation of mineral resources."
- N.K. Premachandran MP.