Rajya Sabha passes Mines Bill, Centre-states talk soon

The Upper House of Parliament passed the Mines and Minerals Development and Regulation (MMDR) Amendment Bill, 2015, on Friday. Several members of rajya Sabha had raised questions about how the Centre could take up the Bill when mining was a state subject.

March 20, 2015 / 15:45 IST

The Upper House of Parliament passed the Mines and Minerals Development and Regulation (MMDR) Amendment Bill, 2015, on Friday. A select panel of 19 Rajya Sabha members had approved the bill with two amendments while four had a dissent note on it.

Several members of rajya Sabha had raised questions about how the Centre could take up the Bill when mining was a state subject. The Bill was passed amid a walkout by Janata Dal (United) members and stiff opposition from Congress and Left. All other parties supported the NDA government in passage of the Mines Bill.

However, eminent laywer KTS Tulsi says the new Bill takes away the rights of states and may be challenged in the Supreme Court. To this, Union mines secretary Anup K Pujari told CNBC-TV18 the government will consult the states with respect to certain norms of the Bill shortly.The secretary said the Lok Sabha will also take up the amended Bill now. The BJP-led NDA government enjoys an overwhelming majority in the Lower House.

The mining sector in Asia’s third largest economy has been mired in controversy over the illegal allocation of resources, causing a near standstill in granting permits to open new mines for firms including South Korean steel giant Posco. India was once the world’s third-largest exporter of iron ore but is importing heavily now due to court action on illegal mining.

The Supreme Court has eased some of the curbs, but state bureaucrats have dithered over renewing mining licenses, fearing charges of corruption. The government hopes auctions will reduce the risk of wrongdoing, helping to put the mining industry back on track. But it is unlikely to lead to a sudden surge in iron ore output at a time when there is a global glut and prices have crashed.