Cabinet likely to approve mining reforms proposal tomorrow

Few months after the amendments in the Act, the government may auction around 500 blocks in the next 2-3 years.

The Union cabinet is most likely to consider the proposal of mining sector reform for enhancing private investment, in the meeting scheduled for January 13.

Amendments in the Mines and Minerals (Development and Regulation) Act, 1957 have been proposed, sources said.

The proposal sent to the Union cabinet includes structural reforms by redefining the norms of exploration for auction of mineral blocks and ensuring seamless transition from exploration to production.

It also includes resolving legacy issues to move towards an auction only regime for allocation of mineral resources, removing the distinction between captive and non-captive mines and clarifying the definition of illegal mining.

Once the cabinet approves the amendments, the government may bring the bill in parliament during upcoming budget session.

Few months after the amendments in the Act, the government may auction around 500 blocks in the next 2-3 years, sources said.

In May last year, under the Aatmanirbhar Bharat package the government had announced enhancing private investments in the mineral sector and bringing in other reforms.