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1 Minutes of the 2 nd National Meet of Mining Ministers held on 27 th May, 2016 at Jaipur under the Chairmanship of Hon’ble Union Minister of Steel and Mines, Shri Narendra Singh Tomar (Minutes 16 pages & Annexures 23 pages) The 2 nd ‘National Meet’ of the Ministers in-charge of Mining Department of the State Governments was convened under the Chairmanship of Hon’ble Union Minister of Steel and Mines, Shri Narendra Singh Tomar, in Jaipur on 27 th May, 2016 to discuss the key issues pertaining to the mining sector in India. The list of participants is given at Annexure-I. (1) Shri Balvinder Kumar, Union Secretary (Mines), welcomed the Hon’ble Union Minister of Steel and Mines, all the Hon’ble Ministers from the State Governments and all the officers of the State Governments and other participants. He mentioned that the Ministers and officers of the Mining Department of various States have gathered for this meeting to discuss the key issues of the mining sector and review implementation of various provisions of MMDR Amendment Act, 2015 and rules framed there under. Briefly introducing the agenda points Secretary (Mines) invited Hon’ble Union Minister of Steel and Mines to deliver the key note address. (2) Hon’ble Union Minister of Steel and Mines, Shri Narendra Singh Tomar, heartily welcomed the Ministers of State Governments, senior officials and all other delegates. He mentioned that India is blessed with abundant mineral resources and currently the mining sector contributes about 2.4% to GDP of the country that can be enhanced further. He lauded the importance of the mineral sector as being one of the leading employment providers in the country. He mentioned that slowdown in the mining sector is owing to various Supreme Court judgements and Shah Commission observations have been adequately addressed through MMDR Act, 2015. This was essential to usher in greater transparency that would take away discretion and biases. More than a year has passed since the reforms have been initiated. During this period, the Central Government has brought out enabling rules and the templates for auction, based on which several blocks have been taken up for auction by the State Governments. These auctions have not only brought in greater transparency and but also generated higher revenue for the States. (3) The Hon’ble Minister of Steel and Mines further highlighted the following key points-

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Page 1: Minutes of the 2nd National Meet of Mining Ministers held ... · b) Chhattisgarh: Honble Minister, Shri Amar Agrawal, appreciated the good results achieved after the amendment of

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Minutes of the 2nd National Meet of Mining Ministers held on 27th May, 2016 at

Jaipur under the Chairmanship of Hon’ble Union Minister of Steel and Mines, Shri

Narendra Singh Tomar

(Minutes 16 pages & Annexures 23 pages)

The 2nd ‘National Meet’ of the Ministers in-charge of Mining Department of the

State Governments was convened under the Chairmanship of Hon’ble Union Minister

of Steel and Mines, Shri Narendra Singh Tomar, in Jaipur on 27th May, 2016 to discuss

the key issues pertaining to the mining sector in India. The list of participants is given

at Annexure-I.

(1) Shri Balvinder Kumar, Union Secretary (Mines), welcomed the Hon’ble Union

Minister of Steel and Mines, all the Hon’ble Ministers from the State Governments

and all the officers of the State Governments and other participants. He mentioned

that the Ministers and officers of the Mining Department of various States have

gathered for this meeting to discuss the key issues of the mining sector and review

implementation of various provisions of MMDR Amendment Act, 2015 and rules

framed there under. Briefly introducing the agenda points Secretary (Mines)

invited Hon’ble Union Minister of Steel and Mines to deliver the key note address.

(2) Hon’ble Union Minister of Steel and Mines, Shri Narendra Singh Tomar, heartily

welcomed the Ministers of State Governments, senior officials and all other

delegates. He mentioned that India is blessed with abundant mineral resources

and currently the mining sector contributes about 2.4% to GDP of the country that

can be enhanced further. He lauded the importance of the mineral sector as being

one of the leading employment providers in the country. He mentioned that

slowdown in the mining sector is owing to various Supreme Court judgements

and Shah Commission observations have been adequately addressed through

MMDR Act, 2015. This was essential to usher in greater transparency that would

take away discretion and biases. More than a year has passed since the reforms

have been initiated. During this period, the Central Government has brought out

enabling rules and the templates for auction, based on which several blocks have

been taken up for auction by the State Governments. These auctions have not only

brought in greater transparency and but also generated higher revenue for the

States.

(3) The Hon’ble Minister of Steel and Mines further highlighted the following key

points-

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a) e-Auction of major mineral blocks: 47 major mineral blocks were notified by 9

State Governments out of which 6 blocks have been auctioned successfully – 2

blocks in Jharkhand, 3 blocks in Chhattisgarh and 1 block in Odisha. The Central

Government had provided all necessary support and hand holding to the State

Governments in conducting auction. Now this process should be expedited

which will help in growth of the mining sector, revenue generation to the States

and country as a whole.

b) Setting up of District Mineral Foundations (DMF) and National Mineral

Exploration Trust (NMET): DMF has been constituted in most of the States and

fund collection has started in DMF accounts. It is expected that Rs. 6,000 crore

will be deposited into DMF fund annually which will be utilised for the local

area development and social upliftment of people affected by mining. This will

help in improving image of mining sector and will also encourage participation

of local people and holistic development. Collection of NMET fund has also

started in most of the States. He urged all the State Governments which have

not set up/ or have not commenced collections under DMF and NMET so far

should do it at the earliest and prepare action plan to deliver on key PMKKKY

objectives.

c) National Mineral Exploration Policy (NMEP): Exploration work is crucial for

the growth of mining sector. So far, of the entire Obvious Geological Potential

(OGP) area identified by GSI, only 10% has been explored and mining is taking

place in 1.5–2% of the area. The OGP areas identified by GSI can create more

mining opportunities and large employment if the exploration is carried out

expeditiously by conversion of those areas into mining leases subsequently. A

cabinet note regarding NMEP has already been prepared. This policy is also

focused on attracting and seeking large private sector participation in taking up

exploration besides involving GSI, MECL and other notified exploration

agencies. Now, the State Governments have to play a greater role by referring

exploration projects which can be taken up through NMET.

d) Processing of saved ML applications under section 10A(2)(c): The State

Governments must expedite processing of the ML applications which were

saved by section 10A(2)(c) of the Act with the timeline up to 11.01.2017.

Wherever there is delay due to EC and FC clearances, the same could be brought

to the notice of the Central Government so that it could facilitate in expediting

necessary clearances from MoEFCC.

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e) System of Mining Plan preparation, certification & monitoring: As a measure of

further empowerment of the State Governments, the system of mining plan

preparation, certification & monitoring can be devised by the States taking up

of this responsibility to develop their capabilities.

f) Star Rating of the Mines: The star rating of mines (with built-in compliance

mechanism for environment and forest safeguards) introduced recently will

recognize good performers in the mining sector for their efforts and initiatives

in implementing the Sustainable Development Framework.

g) Use of Space Technology: Furthermore, newer technologies such as space

technology are being adopted for an efficient mineral regulation and

administration. The Ministry is working closely with ISRO to develop

applications to prevent illegal mining using space technologies. For making this

path breaking plan a success, close collaboration with the State agencies is

essential.

(4) Subsequently, the Union Secretary (Mines) made a presentation on “Overview of

Mineral Sector – Reforms and Challenges”. The same is attached as Annexure III.

Salient points mentioned by Union Secretary (Mines) during the presentation are

as follows-

a) Mineral sector reforms ushered in by the MMDR Amendment Act, 2015 include

grant of mineral concession through auction, DMF for social upliftment of

people and area affected by mining, NMET for incentivizing regional and

detailed exploration, extension of existing leases and stronger penal provisions

for checking illegal mining.

b) The Central Government notified enabling rules and published standard

templates and is providing all hand holding support to the State Governments

in carrying out auctions through its PSUs like MSTC for providing auctioning

platform, SBICAP for giving transaction advisory, MECON for carrying out

DGPS/Total Station survey, GSI & MECL for report digitisation and IBM for

technical support. The States may expedite preparation of blocks for auction.

c) PMKKKY to be implemented by DMF has been issued as a directive under

section 20A on September 16, 2016. States of Madhya Pradesh, Maharashtra,

Rajasthan and Tamil Nadu, which are yet to notify DMF Rules, should

accelerate the process. The States should expedite utilizing the DMFs being

collected so as to serve the interests of the affected people.

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d) The State Governments should consider constituting DMF for minor minerals

under the newly inserted section 15A in the MMDR Act.

e) NMEP is being formulated to provide an impetus to exploration in the country

through private sector participation. About 100 blocks have been identified by

GSI and the exploration contracts for these blocks will be awarded through

competitive bidding.

f) Simplification of procedures for exploration where the Ministry of Defence &

DGCA have agreed for relaxation of restrictions imposed earlier regarding

public dissemination of geo-scientific information available with various

government entities.

g) Star Rating for implementing the Sustainable Development Framework has

been introduced. The State Government to provide key support by asking the

lessees to implement the Star Rating for their mines.

h) Use of space technology to check illegal mining, this will have minimum human

intervention, access to remotest area and automatic detection. Mining

Surveillance System (MSS) is being implemented for major minerals. The State

Governments are requested to give the data of non-working mines of major

minerals and also the lease boundaries of minor minerals in the vicinity of the

major mineral leases. They were also requested to depute one mining officer to

BISAG, Gandhinagar to check accuracy of geo-referencing of leases.

i) The MSS may be replicated for all minor mineral leases also.

j) The Ministry had issued a directive to the State Governments on 17.08.2015

under Section 20A of the Act to implement transparent systems such as

auctions, for awarding minor mineral concessions. Most of the State

Governments have formulated rules for minor minerals where concession will

be granted in transparent manner. However, Andhra Pradesh, Chhattisgarh,

Haryana, Kerala and Jharkhand are yet to make the rules.

k) Extension of existing leases under Sub-Sections (5) and (6) of Section 8A of the

MMDR Amendment Act, 2015 needs to be expedited by the State Governments.

l) The saved cases under 10 A (2) (b) and 10 A (2) (c) need to be dealt with at the

earliest.

(5) The Union Minister of Steel and Mines then invited Ministers of the State

Governments to present their valuable suggestions, experiences with recent

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auction and deliberate on important issues. The gist of views expressed by the

State Ministers is as under-

a) Nagaland: Hon’ble Parliamentary Secretary, Dr. Imtiwapang Aier expressed his

gratitude to the Hon’ble Minister of Steel and Mines and the Union Secretary

(Mines) for convening this meeting and informed that Nagaland is still in

nascent stage in mining sector. The State Government has framed Nagaland

Minor Mineral Rules, 2005. Nagaland has brought out a proposal of sustainable

mining of minor minerals for economic development of tribal people through

effective implementation of the Nagaland Minor Mineral Rules, 2015. He

requested the Central Government for financial support in respect of

exploration proposals referred by the State. Further, the State Government is

also proposing to set up vocational training centre for mining activities.

b) Chhattisgarh: Hon’ble Minister, Shri Amar Agrawal, appreciated the good

results achieved after the amendment of MMDR Act. Especially, Chhattisgarh

has been greatly benefited by the successful e-auction of three mineral blocks

and over the life of the leases, it will receive an aggregate royalty amount of

about Rs. 1,770 crore, a total premium amount of Rs. 4,700 crore will accrue to

the State Government. Further, 7 limestone blocks and 2 bauxite blocks have

been identified for auction shortly. He lauded provisions relating to the DMF

and NMET which will benefit mining affected people and exploration of areas

respectively. He thanked the Central Government for accepting all the 5

exploration projects which were sent for consideration under NMET fund. So

far, Rs. 300 crore has been deposited in DMFs and planning for utilization of

fund has also started. Draft Minor Mineral Rules have been prepared on 23.03.16

which will allow grant of concession only through auction. He suggested that

auction of blocks with G3/G4 level of exploration may also be allowed.

Production of at least 70% of quantity of mineral as approved under the mining

plan should be made compulsory. Further, there is practical problem in case of

captive mines where it is not possible to utilize 100% of minerals hence certain

relaxation should be allowed. At the insistence of Hon’ble Union Minister of

Mines, Chhattisgarh committed to showcase the implementation of at least one

project under PMKKKY before the ensuing mining conclave to be held on 4-5

July, 2016.

c) Odisha: Hon’ble Minister, Shri P K Mallik, expressed gratitude for inviting all

the States for this national meet. Odisha is a mineral rich State and is blessed

with variety of minerals. The State Government is taking all the initiative for

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sustainable mining and proper utilization of resources. This has resulted in

good growth in mineral production. Odisha is the first State to successfully

auction the iron ore block which has resulted in greater revenue to be accrued

to the State. More blocks of limestone, iron ore and bauxite have been identified

for auction during the current year. Exploration activities have been undertaken

in mineral rich potential areas. Blocks are explored to G2 level with help of GSI

and MECL so that they can be taken up for auction. He requested the Central

Government to strengthen GSI and MECL to step up exploration work and also

facilitate faster clearances from MoEFCC. The validity of the leases has been

extended in 63 cases of ML as per section 8A (5) and (6). DMF Rules have

already been notified and about Rs. 500 crore of funds are already collected. An

amount of Rs. 19.71 crore has been collected under NMET. Odisha Minor

Mineral Rules, 2004 is in the process of being amended which will provide for

the grant of minor mineral concession through auction. Gemstone Rules will

also be notified soon.

d) Uttar Pradesh: Hon’ble Minister, Shri Gayatri Prasad Prajapati, appreciated

efforts of the Central Government and for providing opportunity to discuss

important issues of mining sector. Limestone and coal is the only major mineral

in UP. There is continuous increase in demand of minor minerals like sand,

boulder, gravels etc. which the State Government is trying to meet. He drew

attention to issue faced by the State Government wherein it is unable to proceed

with the e-tender process for minor minerals due various litigations and Court

decisions, despite of repeated attempts by the State Government. The State

Government made a provision for allocation of mines through auction only and

this resulted in scope for higher revenue realization. There was a time when the

State had 1,200 MLs but currently it has only 250 MLs. Second important issue

related to axle load norms having reference to old technology and necessary

amendments required in Road Transportation Act and rules and called for

initiative on part of the Union Mines Ministry to organize a tripartite meeting

with Ministry of Road Transport for resolving of related issues.

e) Karnataka: Hon’ble Minister of Karnataka, Shri Vinay Kulkarni, thanked to

Hon’ble Minister of Steel and Mines for inviting him and welcomed the steps

taken by the Central Government and congratulated for the good results

achieved after amendment of MMDR Act. Fourteen iron ore blocks were taken

up for auction by Karnataka but due to the issues relating to the applicable

stamp duty, the process got delayed but hopefully the process will be completed

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by August 2016. He suggested that in order to have transparent price of

minerals, the Central Government should step forward and mandate the sale of

minerals to be carried out through e-auction. An amount of Rs. 11.62 crores has

been collected so far in DMF. He suggested that even for mining leases that are

granted through auction, DMF at 30% of royalty should be collected. There are

some cases of limestone in Karnataka where prior to amendment of MMDR Act,

private players have been facilitated by the state government to purchase land

for mining lease but with the amendment of the Act on technical ground of not

having LoI, they are not covered under the saving clause provided in the

MMDR Amendment Act. This issue needs to be addressed.

f) Madhya Pradesh: Hon’ble Minister of Madhya Pradesh, Shri Rajendra Shukla

expressed his gratitude to the Hon’ble Minister of Steel and Mines for convening

this national meet. NIT for 4 blocks has been issued on 4th May, 2016 and

auction process is currently under progress. Five more blocks have been

identified for which NIT will be issued by October 2016. GSI is carrying out

exploration at fast pace and 6 blocks are expected to be ready for auction within

a year or two. The State DGM has also explored 6 blocks which will be taken up

for auction subsequently. DMF account is opened in all the districts. Draft DMF

Rules are ready and the Law Department is vetting the same. Rules will be

notified shortly. An amount of Rs. 120 crore has been collected so far as DMF

contributions. He drew attention to the date of collection of DMF, coal mining

lease holders are contributing towards DMF from October 2015 onwards and

not from 12.01.15 as has been notified the Ministry of Mines. An amount of Rs.

18 crore has been remitted into NMET account. He also praised initiative of MSS

to prevent illegal mining. Electronic auction platform is developed for minor

minerals and auction has been carried out for sand which resulted in large

revenues to the State Government. He thanked the Central Government for

providing necessary support in carrying out auction by way of providing hand

holding through SBICAP and also expeditious exploration by GSI and MECL.

g) Punjab: Hon’ble Minister of Punjab, Shri Madan Mohan Mittal, appreciated

efforts of the Central Government. A lot of things have been decentralized.

Initially, a lot of illegal mining was taking place due to delay in clearances, but

now this has been checked. Reverse bidding has been implemented to control

price rise of the minerals. This was great measure to control mineral prices and

to make appropriate quantity of minerals available. Tax was imposed on the

mineral bearing vehicles which were transporting mineral out of the State. He

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sought assistance from the Central Government regarding EC/FC clearances to

the State Government, as this is causing great delay in auctioning and also

starting of mining operations in the State. He further suggested that meetings

with MoEFCC may be convened to take up this issue.

h) Haryana: Hon’ble Minister of Haryana, Shri Naik Singh Saini, appreciated

efforts of the Central Government in bringing transparency in the mining sector.

In Haryana, most of the minerals are minor minerals that are used for

construction purposes. The State Government is granting mineral concessions

through auction from a long time. New Haryana Minor Mineral Concession

Rules and Illegal Mining Rules, 2012 were notified on 20.06.2012 after repealing

of 1964 rules. He also drew attention towards delay in getting EC/FC clearances.

i) Rajasthan: Hon’ble Minister of Rajasthan, Shri Raj Kumar, welcomed the

national meet and providing opportunity to discuss issues. He also welcomed

all the participants to Rajasthan. Fourteen mineral blocks have been made ready

for auction out of which NIT of 8 blocks have been issued. For remaining 6

blocks, request is made for relaxation. He requested that 8 more major minerals

may be notified as minor minerals. DMF Rules will be notified by next month.

Collection of NMET fund has started. Five exploration projects have been

forwarded to taken up through NMET. Drafting of Minor Mineral Rules is in

advance stage and will be notified shortly.

(6) The Union Minister of Steel and Mines while proposing a vote of thanks stated that

the discussions carried out today were very fruitful and was helpful in

understanding the views and insights of the State Governments. All have given

valuable suggestions for development of mining sector and the Central

Government will make all necessary endeavours. He also emphasized that more

mineral blocks need to be taken up for auction. A tripartite agreement may be

made among NMET, MECL and State Governments which will help in faster

exploration of the geologically potential areas. Such an agreement has already

been executed with Maharashtra and it will be executed with Madhya Pradesh and

Odisha today.

(7) In the post lunch Technical Session, the Union Secretary (Mines) asked all the

participants to speak about the agenda items in regard to their State. State-wise

gist is as under-

a) Andhra Pradesh: NIT has been issued for 6 limestone blocks in the first round

and the online e-auction will commence in May 2016. During the stakeholders’

meetings, the stakeholders expressed that the auction system is new; hence, it

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will take some time for bidders to adapt to it. Exploration, survey and

demarcation work is currently under progress in 12 other blocks (10 limestone

& 2 gold). DMF Rules were notified and DMFs constituted in all districts. DMF

account opening is in process and collection is expected to start shortly.

Collection of NMET fund in the State has already started. Extension of existing

leases under Sub-Section 5 and 6 of Section 8A of the MMDR Amendment Act,

2015 is under process. There are 42 cases of Section 10A (2)(c) cases which are

pending in the State. Action taken by the state government in respect of these

cases will be shared with Ministry of Mines.

b) Telangana: A MoU has been signed between State Government and GSI for

upgrading exploration from G4 to G2 in 11 mineral blocks. GSI conveyed that

only 1 block will be taken up for this field season and rest will be taken up

during next season. DMF Rules have been notified and DMFs in all districts are

yet to be constituted. Collection of DMF fund is yet to start whereas NMET fund

collection has started.

c) Gujarat: Exploration has been completed for 10 blocks, out of which 4 blocks

have been identified for auction in the second phase which is likely by the next

month and the remaining 6 blocks will be taken up subsequently after 3-4

months. As the aforementioned 4 blocks contain marl, a major mineral whose

selling price is not available for preparation of tender documents, the State has

requested the Central Government and IBM for publishing price of marl.

During the discussions with the cement manufacturers regarding lower

participation by bidders in the first phase of auctions, it came out that distance

of limestone from the market/plant is major issue along with restriction of

captive use. DMF Rules have been notified and DMFs have been set up.

Collection of fund in DMF and NMET will start soon after tying up with the

banks.

d) Jharkhand: 2 blocks out of 3 have been auctioned successfully in the first phase

of auctions and LoIs have been issued. NIT for 3rd block which was unsuccessful

will be issued shortly. Three more blocks will be taken up for auction in second

phase by next month. DMF Rules have been notified. DMFs have been

constituted in 14 out of 24 districts and accounts are opened in 4 districts.

Collection of DMF fund will start shortly. Collection of NMET fund has already

started. He further requested that Revisionary authority may like to expedite

the hearing of cases where stay has been granted.

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e) Chhattisgarh: Three blocks out of 5 have been auctioned successfully and

auction of remaining 2 blocks has been annulled due to insufficient number of

bidders (less than 3), which is mainly due to higher stripping ratio. Geological

Report updation and DGPS survey of area is currently under progress in 9

blocks (G2 level explored) identified for second round of auction. NIT is likely

to be issued for the same in early June. DMF Rules have been notified and DMFs

have been incorporated. Collection of fund has started in DMF and NMET.

f) Karnataka: On-going auction process has been extended due to legal issues

relating to the stamp duty. Cabinet discussion is being obtained regarding

amendment of the Stamp Act. The auction of the notified blocks will be done as

per the schedule given. The exploration of 15 mineral blocks is expected to be

completed by June 2016 and 12 mineral blocks by Jan 2017. Eight mineral blocks

will be taken up for auction by December 2016. Nine new mineral blocks have

been identified for exploration, 5 blocks are being explored by GSI at G4 level.

GSI may be advised to carry out exploration up to G2 level else, MECL may be

appointed for the same. DMF Rules have been notified and DMFs have been

constituted. Collection of NMET has already started.

g) Rajasthan: The State Government has started identifying mineral blocks other

than limestone for auction like iron ore, manganese, gold, copper, rock

phosphate and potash. Nineteen mineral blocks have been identified. Seven

blocks are identified for ML and 12 for CL. NIT for these 8 blocks have been

issued. The cement grade limestone prices notified by IBM are higher than SMS

grade limestone which is an aberration as the cement grade limestone is an

inferior grade of limestone when compared to the SMS grade limestone and

cement grade limestone gets sold at a lower price in the market than the SMS

grade limestone. IBM has explained the methodology adopted for computing

the selling prices of limestone and clarified why such difference has occurred in

case of limestone. The relaxation of 6 blocks having G4 level of exploration has

been sought from the central government for auctioning as PL-cum-ML to save

the difficulty in exploration. AS (Mines) clarified that the exploration would

have to carried out in case if the PL-cum-ML is also to be auctioned, but the

lower exploration level may have its impact on the realisation of the fair value

through auction of the block. DMF Rules in Rajasthan are yet to be notified and

DMFs yet to be constituted.

h) Odisha: One iron ore block was auctioned successfully out of 3 blocks which

were put for auction. DGPS survey is being carried out for 2 mineral blocks.

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Exploration work of upgrading 13 blocks from G3 level to G2 level has been

assigned to GSI, MECL and Director of Geology. The State Government is in the

process of seeking the Central Government permission to auction CL of

limestone and manganese blocks which are explored till G3 level. DMF Rules

have been notified and DMF in all districts have been constituted. Collection of

DMF and NMET fund has been started.

i) Madhya Pradesh: NIT of 4 blocks will be issued within a week. In second phase,

5 blocks have been identified and expect that the same will be put for auction

by October 2016. Exploration work for 4 blocks is being carried out by MECL, 6

blocks by GSI and 6 blocks by State DGM. Once these blocks are fully explored,

same will be taken up for auction. DMFs have been constituted in all the districts

and collection has started though DMF Rules are yet to be notified. Collection

of NMET fund has also started.

j) Punjab: The Hon’ble High Court has directed the State to obtain EC/FC

clearances prior to auction of minor mineral mines for which State is trying hard

since 2009. The clearances obtained in the name of State need to be transferred

to the holder then only concession can be granted. The State has submitted 42

cases for transfer to MoEFCC so far (i.e. clearances to be transferred in the name

of prospective concession holders), which are pending with MoEFCC since

19.01.2016. The process is taking long time and the help of the Central

Government is sought in this regard. It was decided that government of Punjab

will send a detailed proposal to Ministry of Mines for extending suitable

assistance by way of getting clarification from MoEFCC. Drafting of DMF Rules

is currently under progress and will be submitted to cabinet for approval. Minor

Mineral Rules 2013 have been notified on 8.03.2013. State has appointed Nodal

Officers in the districts for the redressal of mining complaints in effective

manner.

k) Uttar Pradesh: The State has started auction of minerals in 2012 but not able to

auction any lease till date. No lease has been sanctioned till date due to various

High Court orders. The State has prepared new rules, UP Minor Mineral Rules.

As per court order, the State prepared tender for entire State and submitted to

the court but as per court directive the auction process was stalled. Almost no

mining is taking place in the entire State due to the High Court and NGT orders.

l) Maharashtra: NIT for 6 fresh mineral blocks along with 4 old mineral blocks,

which were put up for auction earlier in first phase, will be issued by 30.06.16.

These blocks being taken up for auction include 3 bauxite, 2 tungsten, 1

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limestone, 1 copper, 1 iron ore and 1 manganese. As there is no State specific

price for tungsten and copper therefore ‘All India Prices’ published by IBM are

being considered for preparation of tender documents. Draft of DMF Rules is

ready but DMF Rules are yet to be notified and DMFs at district level will be

constituted subsequently. NMET fund collection has already started. The State

has digitised all major mineral leases in State to curb illegal mining. Monitoring

of leases through satellite is being carried out since last 2 years with the help of

MRSAC.

m) West Bengal: The State is in touch with MECL and GSI for identification of

blocks for auction. Blocks of lead and zinc ore and pyrolusite mineral have been

identified. Further, exploration of pyrolusite is needed as technology is not

available in India. The State has notified DMF Rules in March 2016.

n) Tamil Nadu: The State has identified 2 molybdenum blocks which are at G3

level. MECL and GSI have carried out some exploration work on these blocks.

There are ongoing litigations in case of an iron ore block and a limestone block.

DMF Rules for both major and minor mineral are with the Department of Law.

NMET is also in the process of being implemented. MECL sought for 12 blocks

where it is willing to carry out exploration, the details have been furnished to it.

Minor Mineral Rules have been amended. There is an online mining tenement

register to curb illegal mining and the same has been integrated with e-permit

system also. There are 142 cases for extension of mining leases, being taken up

on case by case basis. Ten cases under 10 A(2)(c), 3 cases have been sent for

environmental clearances, 2 cases are in court and 2 cases are with the State

Government.

o) Sikkim: The Forest Department of State regulates the minerals in the State.

Minor Mineral Rules have been drafted and are currently with the Law

Department for vetting. There is no incidence of illegal mining in the State.

p) Jammu & Kashmir: Limestone is the only major mineral in the State and the

blocks are already leased out. There are few blocks which are under exploration

and once G2 level exploration is completed, they will be taken up for auction.

Draft DMF Rules have been framed and will be notified after approval from the

Cabinet. NMET collection will start from next month. Rules have been framed

for minor minerals and curbing of illegal mining activities.

q) Meghalaya: Minerals are not abundant hence it may not be economical for large

scale mining. In the State, land is not owned by the government so land needs

to be acquired or leased out from private and tribal people. The tribal people

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claim that as the land belongs to them so are the minerals, this is the main barrier

against auction of mineral concessions. A proposal is made for exemption of

section of MMDR Act which is currently being vetted by the Law Department

and will be sent to the Cabinet and the Central Government for approval. DMF

Rules and Minor Mineral Rules have been framed and have been sent to the

Law Department for vetting.

r) Kerala: The DMF Rules have been drafted and the same will be notified shortly.

The State has started collecting and remitting NMET fund. Minor Mineral Rules

have been notified on 07.01.15. Mining plan has been made mandatory for

minor mineral with a relaxation for existing minor mineral quarries below 5 ha

for a further period of 3 years. The State has enacted same penal provisions as

prescribed in the MMDR Act, 1957. For major minerals, the system established

by IBM is being used and for minor minerals, the system established by State is

being used. E-governance project has been launched –awarding e-permit, filing

online application, processing etc. The State has entered into an MoU with the

Ministry of Mines for implementing the Mining Tenement System. There is only

1 case of deemed extension, which is being expedited.

s) Assam: Major mineral blocks of iron ore, limestone, granite, sillimanite and

quarzite are identified a few years back but reassessment is needed. Currently,

reassessment work is under progress and once it is completed, these blocks will

be notified for auction. Draft of DMF has been prepared and will be placed

before the Cabinet for approval. As soon as the new government approves the

draft DMF Rules, the same will be notified and DMFs will be set up in 27

districts of Assam. Notification of NMET has been circulated amongst lease

holders but so far only Coal India has responded and started depositing money.

Mining plan has been made mandatory in Assam and monitoring is done

through Forest Department and DGM of Assam. Adoption of IT in mineral

legislation and administration has been initiated and project is under progress

through the IT Department of Assam.

t) Manipur: There is no operational mine in the State hence DMF and NMET had

not been constituted so far. Manipur has limestone and chromite ore. In respect

of e-auction, State has identified some blocks of limestone and one block will be

taken up for auction very soon. However, for chromite, level of exploration as

per UNFC has not been achieved, hence could not be notified without further

exploration. Minor Mineral Rules are being amended and administration of

minor mineral will be taken over by the Commerce and Industries Department.

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u) Bihar: Limestone is only major mineral in the State but most of the area comes

under forest and eco-sensitive zones. The State is already conducting auction of

minor mineral since 2009. In order to curb illegal mining, task force have been

formed. Electronic platform as adopted by Odisha for collection of NEMT, DMF

and royalty has been adopted in Bihar also and currently training is under

progress.

v) Himachal Pradesh: One block has been identified and currently compilation of

exploration/geological data is under progress. Proposal has been sent for the

conduct of DGPS and revenue survey as required under Mineral (Auction)

Rules, 2015. NMET collection has started and amount of Rs. 2.06 crore has been

deposited so far. Amendment of Minor Mineral Rules has been completed and

auction process of minor minerals has started. The State has recently conducted

auction of quarries in 3 districts. For 44 ML, period of 30 years have been

extended.

w) Uttarakhand: The State has forwarded a request to the Central Government for

permission to notify 3 limestone blocks, 1 base metal and 1 phosphorite. Setting

up of NMET and DMF is in progress. A committee has been set up for

implementation of surveillance system to check illegal mining.

(8) The Union Secretary (Mines) summarised the key commitments given by the

States and underlined the issues on which there is need of specific attention by the

State Governments. They are as under-

a) Commitments given by the States in respect to the auction of mineral blocks,

which have been compiled as Annexure II, should be expedited.

b) The States of Gujarat, Maharashtra, Rajasthan, Odisha, Jharkhand &

Chhattisgarh informed that though they had expeditiously put up the mineral

blocks for auction, but the e-auction of 17 mineral blocks had to be deferred due

to insufficient number of applications of initial bids. The States informed that

the key Issues have been identified viz. the quantity and grade of ore, quality

of the mineralization studies, land ownership pattern, general dull market

scenario and restrictive end use conditions imposed by the states in the bidding

documents. The States assured that they are already in the process of resolving

these issues and would be re-tendering he blocks soon.

c) Most of the states have already constituted DMF. Rest of the States committed

that they would also complete the process of notifying the rules in 1 month’s

time.

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d) Chhattisgarh has committed to showcase the implementation of at least one

project under PMKKKY before the mining conclave to be conducted on 4-5 July,

2016.

e) The States have come forward in adopting auctions for minor minerals as per

the directive issued by the Ministry under Section 20A to implement transparent

systems for giving minor mineral concessions on 17.08.2015. Many States have

already established the system for grant to minor mineral leases through

auctions. Some States like UP, Punjab, Haryana, etc. expressed the difficulty in

the auctioning of minor mineral leases due to litigations in various courts and

also difficulties in regard to obtaining of environmental clearances.

f) Extension of existing leases under Sub-Section 5 and 6 of Section 8A of the

MMDR Amendment Act, 2015 was discussed in the meeting and states like

Andhra Pradesh, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh,

Maharashtra, Odisha, Rajasthan and Tamil Nadu were asked to expedite the

cases on which the state governments have agreed.

g) The Star Rating of Mines system started by the Ministry of Mines is likely to

initiate a self-driven mechanism of compliance of all statutory provisions and

incorporating best practices in mining. All states appreciated this novel idea and

committed to support the endeavor of the Central Ministry.

h) States gave their unanimous commitment to support the Government of India

initiative of development of Mining Surveillance System (MSS) for major

minerals. They promised to give the lease maps of the minor mineral leases

which fall within the 500m perimeter of major mineral lease, besides giving the

lease data of left over major mining leases (mostly non-working). The concerned

regional offices of IBM may collect the same from the respective Sate

Governments within 15 days time.

i) The States agreed to extend the Mining Surveillance System (MSS) for detecting

illegal mining activities in respect to minor mineral leases, as it can be easily

replicated for all minor minerals, where illegal mining is more rampant.

j) The States committed to expedite the processing of seamless transition cases

from RP to PL & PL to ML, which have also been saved under Section 10A(2)(b)

of the amended MMDR Act, 2015. The list of the same may be made available

to the Ministry with the present status and timeline in respect to each case.

k) The mining lease applications saved under Section 10A (2)(c) of the amended

MMDR Act, 2015 were also discussed and it was emphasised by the secretary

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(Mines) that the time limit for eligibility is till 11.01.2017. States of Andhra

Pradesh, Chhattisgarh, Goa, Gujarat, Jharkhand, Karnataka, Madhya Pradesh,

Odisha, Rajasthan, Tamil Nadu and Telengana were asked to expedite the

matter within the stipulated time limit. All States need to give the list of cases

under section 10A (2)(c) to the Central Government in the prescribed proforma already

circulated. This will enable the Ministry to take up the cases with MoEFCC.

(9) The Union Secretary (Mines) thanked all the State government representatives for

their active participation. He also thanked the Rajasthan Government and GSI for

extending necessary support in organising such a large event.

(10) The meeting ended with thanks to the Chair.

List of Annexures

Annexure I : List of Participants (3 pages)

Annexure II : State-wise summary of blocks for to be put up for auctions (1 page)

Annexure III

Total – 23 pages

: Presentation on “Overview of Mineral Sector – Reforms and

Challenges” by Shri Balvinder Kumar, Union Secretary (Mines)

(19 pages)

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Annexure I

List of Participants (Annexed to the minutes of the 2nd National Meet of Mining Ministers held on 27th May, 2016 at Jaipur)

S. No. State Name Designation

1. Ministry of Mines

Shri Balvinder kumar Secretary, Mines

Shri R. Shridharan Additional Secretary

Shri Niranjan K Singh Joint secretary

Shri Subhash Chandra Joint secretary

Shri Sudharkar Shukla E.A

Shri Prithul kumar Director

Shri Dr. J. Bagchi Director (T), MoM

Shri A.K.Mallik Under Secretary

Smt. Kirti Assistant Director

2. Andhra Pradesh Shri M Girija Shanker Secretary (Mines)

3. Assam Smt. Dipti Das Director (I/C)

4. Bihar

Shri Sanjay Kumar Dy. Director, Deptt. of

Mining & Geology, Govt. of

Bihar

5. Chhattisgarh

Shri Amar Agrawal

Minister, commerce &

Industry, Chhattisgarh.

Shri Subodh kumar Singh Secretary (Mines)

Smt. Reena kangale Director, Geology & Mining

6. Goa

Shri Prasanna Acharya Director, Mines & Geology,

Goa

7. Gujarat

Shri Arvind Agrawal ACS, Government of Gujarat

Shri D.M. Patel Geologist, Gujarat

Shri Ajay Patel Project Manager

8. Haryana

Shri Nayab Singh Saini Minister

Shri Arun Kumar Gupta Director General

Shri Pravesh Sharma State Mining Engineering

9. Himachal Pradesh

Shri Anil kumar Rana Geologist, Geological Wing,

H.P

Shri Rajneesh Sharma State Geologist, Govt. of H.P

10. J&K Shri Farooq Ahmed khan Director, DGM

11. Jharkhand

Shri U.P. Singh ACS, Government of

Jharkhand

Smt. Kumari Anjali Director Geology, Jharkhand

12. Karnataka

Shri Vinay kulkarni Minister Mines & Geology

Shri Nilaya Mitash Principal secretary (MSME

& Mines)

13. Kerala Shri D.P. Sreekumaar Director

14. Madhya Pradesh

Shri Rajendra Shukla Minister

Shri Sheo Shekhar Shukla Secretary

Shri Vineet Austin Director Geology& Mining

Shri Ashok Sharma OSD, Mining Minister, Govt.

of M.P

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15. Maharashtra Shri R.S Kalamkar Director, DGM, Maharashtra

16. Manipur Shri KH. Dilip Singh OSD, Mines

17. Meghalaya Shri Wilfred Khyllep Secretary, Mining &

geology, Meghalaya

18. Nagaland

Shri De. Imtiwapang Aier Parliamentary Secretary

Shri Roviseilie Nalchro Joint Director, G & M ,

Nagaland

Shri O. koratemjem OSD, Government of

Nagaland

Shri Imjung M. Panger Secretary, G&M, Nagaland

19 Odisha

Shri Prafulla Kumar Mallik Minister

Shri R.K.Sharma Principal secretary, Steel &

Mines, Odisha

Shri Pramod kumar Behra P.S to Minister, Steel &

Mines, IESI Odisha

Shri Deepak Mohanty Director of Mines, Odisha

20 Punjab

Shri Madan Mohan Mittal Minister industry &

Commerce

Shri Amit Dhaka Director Mining, Punjab

Sushminder Singh State Geologist

Shri Mhinderpal PS to Mining minister,

Punjab

21 Rajasthan

Shri Raj Kumar Rinwa Minister

Shri Deepak Upreti Principal secretary, Mines &

Petroleum, Government of

Rajasthan

Shri K.L.Swami J.S.Mines, Rajasthan

Shri D.S.Maru Director, Mines, Rajasthan

Shri Bhanu Prakash MD,RSMML

22 Sikkim

Shri G.T. Lepcha Joint Director, Mining &

Geology

Shri D.P Sharma CCS- DMMG, Sikkim

23 Tamil Nadu Shri Atul Anand Commissioner, Geology &

Mining Tamil Nadu

24 Telangana

Shri K. Ilambarithi VC & MD

Shri B.R.V. Susheel kumar Director, department of

Mining & Geology,

Telangana

25 Uttar Pradesh

Shri Gayatri Prajapati Minister, Mining, U.P

Shri Dr. Gurdeep Singh Principal Secretary, Mining,

U.P

Shri Amit Kaushik Mines Officer, DGM, U.P

Shri Satish kumar Singh Mines Officer, DGM, U.P

Shri Rupeshwar Prajapati A.P.S

26 Uttrakhand

Shri Anil Kumar Joint Director, Govt. of U.K

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27 West Bengal Shri Rajeev kumar Secretary, Commerce &

Industry

28 IBM

Shri R.K.Sinha CG, IBM

Shri Darshan Deep

Bhardwaj

Senior ACOM, IBM

29 MECL

Shri Dr. Gopal Dhawan CMD, MECL

Shri Yogesh Sharma G.M (BD&P/E), MECL,

New Delhi

30 GSI Shri Harbans Singh Director General, GSI

32 SBI CAPS

Shri S.V. Prasad VP, SBICAP

Shri Gautam Agrawal DM, SBICAP

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Annexure II

State-wise summary of blocks for to be put up for auctions (Annexed to the minutes of the 2nd National Meet of Mining Ministers held on 27th May, 2016 at Jaipur)

State

Leftover Blocks of 1st

Phase to be put up on

auction

Blocks being prepared for Auction

in 2016-17 *

Andhra Pradesh Ongoing auction of 6 blocks

to be completed in July 12 blocks (10 limestone + 2 gold )

Gujarat 5 blocks to be retendered

10 blocks out of which NIT of 4

blocks to be issued this year and

remaining 6 in latter part of financial

year

MP

Ongoing 4 blocks (3

limestone+ 1 diamond)

auction to be completed by

July

21 blocks – 5 blocks to be notified in

2016 and rest will be notified when

exploration completed.

Odisha

7 blocks (3 iron ore + 1

manganese + 1 bauxite + 2

limestone)

-

Jharkhand 4 blocks (2 limestone + 2

gold) -

Karnataka Ongoing 14 blocks of iron ore

to be completed in August

27 blocks identified out of which 8

blocks will be put up for auction by

December. For another 15 blocks,

GR preparation given to MECL.

Chhattisgarh 2 blocks to be retendered 9 blocks (7 limestone + 2 bauxite)

Rajasthan

Total 14 blocks out of which

for 8 blocks NIT already

issued (7 blocks of limestone

+ 1 of base metal)

12 blocks (iron ore, manganese,

copper, gold, rock phosphate,

potash)

Maharashtra 4blocks to be re-tendered 5 blocks (1 manganese + 2 bauxite +

1 tungsten + 1 copper)

Telengana - -

Tamil Nadu - 7 blocks (3 molybdenum + 2

limestone + 2 graphite)

Uttrakhand - 5 blocks (3 limestone + 1 base metal

+ 1 phosphorite)

Total 60 blocks 108 blocks

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MMDR ACT amended in January 2015

• Mineral Concessions Grant Through Auctions to bring transparency and remove discretion

• DMF: District Mineral Foundation (DMF) to address the long time grievance of the people affected by mining

• NMET: National Mineral Exploration Trust for incentivizing regional and detailed exploration

• Mining Leases for 50 years - Existing leases deemed extended

• Stronger penal provisions for checking illegal mining

• Higher penalties up to 5 lacs per hectare of the area and jail term up to 5 years

MINERAL SECTOR REFORMS

•India has a liberalized FDI up to 100% in mining under automatic route

•Transferability of captive leases, allowed by recent amendment in MMDR Act

•Additional 31 minerals classified as minor minerals

MINERAL SECTOR REFORMS [Contd.]

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e-Auctions: Facilitation for Expediting

Necessary rules, model tender documents & MDPAnotified to facilitate States in auction.

Handholding support to States through IBM, GSI, SBICAPS,MECL, MECON, MSTC and MoM officials.

303 mineral exploration reports handed over to the StateGovernments by GSI & MECL

e-Auctions47 major mineral blocks already notified in 9 States for

auction

Auction concluded in

Jharkhand -2 Limestone blocks on 12th Feb, 2016,

Chhattisgarh- 2 Limestone blocks on 18 &19th Feb, 2016 & 1Gold block on 26 Feb, 2016,

Odisha- 1 Iron ore block on 2nd Mar, 2016

Minerals with estimated value of Rs. 29,800 croresdisposed of in a transparent manner.

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e-Auctions (contd.)Additionality to States’ exchequer through auctions

about Rs.13000 crore over the lease period.

Over 2.5 times revenue will accrue to States throughroyalty, DMF and NMET put together.

Besides this, more mineral blocks are to be prepared forauction during 2016-17 by the various States.

The States may expedite the preparation of blocks forputting up on auction

e-Auctions (contd.)• e-auction had to be deferred due to

insufficient number of applicationsof initial bids for 17 blocks

Gujarat 5 blocks

Odisha1 blocks

Jharkhand1 block

Chhattisgarh2 blocks

Rajasthan3 blocks

Maharashtra4 blocks

Total17 blocks

Issues identified• the quantity and grade of ore, • quality of the mineralization studies, • land ownership pattern, • general dull market scenario• any end use conditions imposed by the states in the bidding documents

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StateLeftover Blocks of 1st Phase to be

put up on auctionBlocks being prepared for Auction in 2016-17 *

Andhra

Pradesh12 blocks (limestone)

Gujarat

12 blocks (10 limestone + 2 bauxite) out of which NIT

of 4 blocks to be issued in June and remaining 8 in

July

MP 4 blocks (3 limestone+ 1 diamond) 4 blocks (Limestone)

Odisha7 blocks (3 iron ore + 1 manganese +

1 bauxite + 2 limestone)-

Jharkhand 2 blocks (copper) 6 blocks (4 bauxite +1 limestone + 1 graphite)

Karnataka 8 blocks

Chhattisgarh 10 blocks ( 8 limestone + 2 bauxite)

Rajasthan8 blocks (7 blocks of limestone + 1

of base metal)

12 blocks (iron ore, manganese, copper, gold, rock

phosphate, potash)

Maharashtra7 blocks (1 Iron ore+ 1 limestone + 4

bauxite + 1 manganese)

6 blocks ( 1 limestone+ 3 bauxite + 1 tungsten + 1

copper)

Telengana 1 block ( iron ore)

Tamil Nadu 7 blocks ( 3 molybdenum + 2 limestone + 2 graphite )

Total 28 blocks 78 blocks

Commitments given by the States for auction

PRADHAN MANTRI KHANIJ KSHETRA KALYAN YOJANA

PMKKKY to be implemented by DistrictMineral Foundations (DMF) issued as adirective under section 20A on 16.9.2015

Developmental & welfare programmes inmining affected areas

The Annual budget of DMFs for majormineral States would be 6000 Cr

60% of the funds for High Priority Areas

40% of the funds for Infrastructure

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PRADHAN MANTRI KHANIJ KSHETRA KALYAN YOJANA(Contd.)

Establishment of DMF, Collection of DMF (Rs Cr)

State Rules notified for

DMF

Constitution of DMF Collection of DMF Fund

Andhra Pradesh Yes Yes

Chhattisgarh Yes Yes 251

Goa Yes Yes 12

Gujarat Yes Yes

Jharkhand Yes Yes 63.44

Karnataka Yes Yes

Madhya

Pradesh

No No 32

Maharashtra No No

Odisha Yes Yes 274

Rajasthan No No

Tamil Nadu No No

Telangana Yes No

Total (Rs Cr) - - 632.44

PRADHAN MANTRI KHANIJ KSHETRA KALYAN YOJANA(Contd.)

State Governments to expedite the settingup of DMF so that these funds beingaccrued, may start getting utilized for thewelfare and development of these areas aslaid down by the PMKKKY scheme.

Such welfare activities are bound to creategoodwill for the mining industry amongstlocal population.

The State Governments also have beenempowered to constitute DMF for MinorMinerals under the newly inserted section15A in the MMDR Act

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NATIONAL MINERAL EXPLORATION POLICY

• To facilitate and provide an impetus toexploration

• to make available baseline geo-scientific datafree of cost in public domain as a public good.

• to fund the generation and dissemination ofsuch data.

• to encourage private sector participation inexploration.

• to focus on exploration of deep-seated/concealed mineral deposits.

• to collaborate with scientific & researchbodies, universities and concerned industries.

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NATIONAL MINERAL EXPLORATION POLICY

• Inter-ministerial consultation in progress

• To be sent for Cabinet approval

• About 100 blocks have been identified byGSI for auctioning for regional exploration

• Sates need to prepare for auctioning ofthe blocks for exploration with revenuesharing mechanism

• States need to identify blocks both forregional & detailed exploration

NATIONAL MINERAL EXPLORATION TRUST (NMET)

To promote regional and detailedmineral exploration

Lessee to pay 2% of the annualroyalty paid.

Under the NMET, so far around Rs201 crores have been deposited

13 mineral exploration in MP,Odisha, Maharashtra,Chhattisgarh, Karnataka andJharkhand have been approved forimplementation in 1st phase

NMET, MECL & States to sign atripartite agreement to facilitateNMET projects

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NATIONAL AEROGEOPHYSICAL SURVEY

GSI proposes to undertakea national aerogeophysicalmapping programme(NAGMP).

Areas with maximumpotential measuring about8 lakh sq km will be takenup first.

NAGMP project will costaround Rs.3500 crore overa period of seven years.

Consultant has beenappointed by GSI in March,2016.

DIGITIZATION OF EXPLORATION REPORTS

More than 6000mineral investigationreports of GSI, withmaps, bore hole data,geochemical data, willbe digitized fordissemination tostake-holders

Digitization isexpected to becompleted by June2016

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SIMPLIFICATION OF PROCEDURES FOR EXPLORATION

Ministry of Defence (MoD) has agreed for relaxation ofrestrictions imposed on sharing baseline geoscientific data inpublic domain.

MoD & Directorate General of Civil Aviation (DGCA) requestedto facilitate expeditious accordance of survey/flight relatedapprovals.

MoEFCC requested to relax provisions for requisite forestclearances for carrying out mineral exploration.

STAR RATING OF MINES

‘Star Rating’ for implementation of Sustainable DevelopmentFramework (SDF)

Star Rating of Mines will initiate a self-driven mechanism ofcompliance of all statutory provisions and incorporating bestpractices by mining.

“Evaluation Template” : Marking of Various Parameters

Star Rating of 1 to 5 Stars : 5 star for the best performance

Evaluation of mines based on their performance in FY 2015-16.

Online portal for submission to be ready in June, 2016

The lessee to fill up the evaluation template on self certificationbasis within June, 2016.

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USE OF SPACE TECHNOLOGY TO CHECK ILLEGAL MINING

Remote Sensing technology has minimum human interference

accessible to remotest area

automatic detection

MoU with NRSC

IBM has signed a MoU withNational Remote Sensing Centre(NRSC), ISRO for -

Pilot study: monitoring ofmining activities

Setup of remote sensinglaboratory in IBM

PROVISIONS TO CHECK ILLEGAL MINING (CONTD.)

‘Mining Surveillance System’ (MSS)

BISAG, Gujarat

For major minerals

Superimposition of lease mapover the satellite map to find outchanges in the surrounding areawith time

The State Governments mayadopt the MSS for minor mineralswhere illegal mining cases are allthe more rampant

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VILLAGE : MALIYA KHERA

TEHSIL: NIMBAHERA

DISTRICT: CHHITORGARH

STATE : RAJASTHAN

KHASRA MAP OF MALIA KHERA LIMESTONE MINING CARTOSAT SATELLITE IMAGE : RESOLUTION 2.5 METER

LEASE BOUNDARY SUPER- IMPOSED ON

KHASRA NUMBERS

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500 METER BUFFER

FROM LEASE

BOUNDARY

LEASE BOUNDARY MAP SUPERIMPOSED ON 2007 ( CARTOSAT-1) SATELLITE IMAGERY N

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LEASE BOUNDARY MAP SUPERIMPOSED ON 2015 ( CARTOSAT-1) SATELLITE IMAGERY

N

Activities outside lease boundary

Support Required from State Governments

1. Cadastral/Khasra Plan:

i. All minor mineral leases falling within 500 m zone of major

minerals

ii. Non Working Major Mineral Leases.

2. State Governments are requested depute one mining officer to

BISAG, Gandhinagar to check accuracy of Georefrencing of lease.

3. The MSS can be replicated for all minor mineral lease in

association with BISAG, where illegal mining is more rampant.

4. After seeing the Mining Surveillance System, MOEF&CC has

shown keen interest in utilizing this to assess carrying capacity

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State Governments Have Been Requested To Provide The Requisite Lease Maps Of Left Over Major Mineral Leases And Of Minor

Mineral Leases In The Vicinity Of 500 M

REGION WISE STATUS OF MAPS

Sl. No.Regional

offices

Total leases in the RegionNo. of maps supplied to

BISAGLeft over maps to be supplied

No. of

Working

Mines

No. of

Non-

Working

Mines

Total

leases

No. of

Working

Mines

No. of

Non-

Working

Mines

Total

leases

No. of

Working

Mines

No. of

Non-

Working

Mines

Total

leases

1 Ajmer 63 68 131 63 68 131 0 0 0

2 Dehradun 53 32 85 53 27 80 0 5 5

3 Udaipur 264 212 476 264 201 465 0 11 11

4 Jabalpur 220 338 558 208 0 208 12 338 350

5 Nagpur 122 130 252 86 72 158 36 58 94

6 Bhubaneshwar 113 283 396 76 151 227 37 132 169

7 Ranchi 77 26 103 77 16 93 0 10 10

8 Kolkata 36 71 107 32 43 75 4 28 32

9 Banglore 67 116 183 67 88 155 0 28 28

10 Hyderabad 312 198 510 175 73 248 137 125 262

11 Raipur 113 73 186 83 32 115 30 41 71

12 Goa 100 349 449 100 317 417 0 32 32

13 Chennai 292 248 540 292 241 533 0 7 7

Grand Total 1769 2076 3845 1513 1261 2774 256 815 1071

MINOR MINERAL RULES

• Directive issued by the Ministry under Section 20A to implement transparent systems for giving minor mineral concessions on 17.08.2015

• Supreme Court’s opinion dated 27/09/2012 on President of India reference dated 12/04/2012

“the action of the State, whether it relates to distribution of largesse, grant of contracts, or allotment of land, is to be tested on the touchstone of Article 14 of the Constitution”

“The action has to be fair, reasonable, non-discriminatory, transparent, non-capricious, unbiased, without favouritism or nepotism, in pursuit of promotion of healthy competition and equitable treatment. It should conform to the norms which are rational, informed with reasons and guided by public interest, etc. All these principles are inherent in the fundamental conception of Article 14. This is the mandate of Article 14 of the Constitution of India”.

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Auctioning of minor minerals

StateWhether auctioning provided inrules

If Yes, which minerals

Andhra Pradesh No ------

Chhattisgarh No ------

Gujarat Yes All minor Minerals

Karnataka Yes Granite,Building Stone etc.

Madhya Pradesh Yes Stone, Sand, Flag stone

Maharashtra Yes Sand

Odisha Yes Building Stone,Gravel,Ordinary Clay etc.

Rajasthan Yes All minor Minerals

Tamil Nadu Yes All minor Minerals

Telangana Yes Some Minor Minerals

Haryana No ------

Kerala No ------

Bihar Yes All Minor Minerals

Himanchal Pradesh YesAll Minor Minerals

Uttarakhand No ------

Uttar Pradesh Yes, but subjudice Sand

Punjab Yes Sand & Gravel

DEEMED EXTENSION OF LEASES

Extension of existing leases under Sub-Section 5

and 6 of Section 8(a) of the MMDR Amendment

Act, 2015

Needs to be expedited by the State Governments

Supreme Court Judgment dated 21.04.2014 in WP(Civil)

435/2012 Goa Foundation vs UOI & Ors.

Application of Rule 24A(6) of earlier MCR for 1st renewal

cases for granting extension under Section 8 of the

amended act.

The States to Expedite the renewal cases pending with

them

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DEEMED EXTENSION OF LEASES (CONTD.)

States have been

extended

yet to be

extended

Andhra Pradesh Nil 24

Chhattisgarh 1 104

Gujarat 2 451Karnataka 67 121Madhya Pradesh 75 761

Maharashtra 74 217

Odisha 44 107Rajasthan 3677 7Tamil Nadu Under process Under process

SAVED ML CASES UNDER 10A(2)(C)

• Cases which are saved under Section 10A(2)(c) of the

amended MMDR Act, 2015

• Time limit for eligibility till 11.01.2017

• Proforma circulated for status of the cases saved under 10A(2)(c)

• Responses only of Andhra, Gujarat & Maharashtra received.

• Consolidated list of cases pending for clearances from MoEF&CC to be expedited from them

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SAVED ML CASES UNDER 10A(2)(C)

Total Cases of 10 A(2)(c) as informed by State Government during the meeting

States Total Cases Pending for MoEFCC Pending with

IBM (Mining

Plan Approval)

Pending with

State

Government

Total No. of Pending

CasesEC FC EC & FC Total

Andhra Pradesh ---- ---- 42 42

Chhattisgarh 9 12 ---- 21 2 10 33 ({13 cases of 5(1)

and 20 (LoI)}

Goa 3 3

Gujarat 3 -- -- --- --- 3 6

Jharkhand 2 --- 28 30 28 30 34

Karnataka Detail not available 1-Gold, 42- Iron Ore

Madhya Pradesh 6 6 3 48 57 {9 cases of 5(1) and

48 of (LoI)}

Odisha 10 10 --- 45 45

Rajasthan 26 1 27 11 6 38

Tamilnadu 4 --- --- 4 4 10

Telangana Detail not available 7 –{ 5- Lime Stone

and 2- Iron Ore}

SAVED ML CASES UNDER 10A(2)(B)

• Seamless transition cases from RP to PL & PL to ML

• Saved under Section 10A(2)(b) of the amended

MMDR Act, 2015

• States may provide consolidated list of pending PL &ML which have been saved in Section 10A(2)(b)

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