New Delhi, March 20: Parliament Friday paved the way for the auction of iron ore and other mines by clearing the Mines and Minerals Bill after days of high drama, with some Opposition parties, including the BJD, breaking ranks from the Congress and Left in the Rajya Sabha to support this key reform measure of the government.
States are likely to launch the auction process in June for allocation of mines having iron ore and other minerals. The Bill, which has incorporated amendments suggested by a parliamentary panel, would replace an Ordinance promulgated in December last.
The amendments provide for existing lease holders to pay 100 per cent royalty towards district mineral foundation, while those who will get mines after the new legislation will have to pay up to one-third of the royalty.
The Mines and Minerals (Development and Regulation) Amendment Bill, 2015, was passed by the Rajya Sabha with 117 members voting in favour and 69 against it.
All parties, barring the Congress and the Left, supported the Bill. These included TMC, NCP, SP, BSP, BJD, AIADMK, DMK and JMM, besides allies Shiv Sena and SAD.
Later it was approved by the Lok Sabha within 20 minutes.
Industry bodies, including CII, FICCI and Assocham, said the new law will bring about transparency in the auctioning of mines, boost investor sentiment and kick-start industrial growth.
The Bill envisages spending a fixed percentage of revenue generated from mining on the development of the local area.
There will be no renewal of mining concession under the Bill. Also, the licence will be for 50 years, against 30 now, after which there will be no renewal but compulsory auction. PTI
