The Ministry of Mines has advised the Minerals Concession Rules, 2021 which will pave way for transfer of mining lease of all types of mines and sale of 50 per cent of mineral produced from captive mines.
According to the reports, Amendment of the Minerals Concession Rules, 2016 was done after extensive consultations with State governments, industry associations, miners and other stakeholders with the objective of increasing mineral production and time-bound operationalisation of auctioned mines.
The other objectives include more investment in the mining sector, employment generation, increasing the pace of exploration and auction of mineral resources. With this amendment, the government has paved way for releasing additional minerals in the market by greater utilisation of capacities of captive mines. The allowance for sale of prescribed quantity of mineral will also motivate the lessees to enhance production from captive mines.
Further, payment of additional premium amount, royalty and other statutory payments in respect of the quantity sold shall boost the revenue of the State governments. Minimum area for grant of mining lease has been revised from 5 hectare to 4 hectare while for certain specific deposits, minimum 2 hectare is provided.
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