Union Government approves Amendment of the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957
Recently mining of new minerals has been allowed to reduce dependence on imports.
- The Union Cabinet has approved a proposal of the Ministry of Mines to amend the Second Schedule to the Mines and Minerals Development and Regulation Act, 1957.
- The purpose of this proposal is to determine the rate of royalty in respect of certain minerals such as Gluconite, potash, emerald (emerald), platinum group of metals (PGM), Andalusite, Sillimanite and molybdenum.
- Gluconite and potash are used as fertilizers in agriculture. PGM, Andalsite and Molybdenum are expensive minerals.
Benefits of this amendment:
- Allowing mining of new minerals will reduce their dependence on imports. This will save foreign exchange reserves.
- These mineral blocks will be auctioned for the first time in India. This is expected to provide many opportunities for the mining and manufacturing sector.
- This will ensure availability of minerals for downstream industries. At the same time, it will also support the agriculture sector.
- Earlier, the MMDR Act was amended in the year 2015 to introduce a new mechanism for grant of mineral related concessions.
- Later, it was amended again in the year 2021 to promote auction of mineral blocks.
Royalty: This is not a tax. It is the rent of the land on which the mine is situated, or it is the price of the privilege of extracting minerals from the land granted by the government.
Source – The Hindu
