Press Trust Of India
New Delhi, Jan 13: President Pranab Mukherjee gave his assent on mines ordinance that paves the way for auctioning of mines containing minerals such as iron ore and bauxite.
The ordinance, which amends the 57-year old MMDR Act, provides for granting mines for 50 years through a competitive bidding route including e-auction. The President has promulgated the ordinance, according to an official notification.
The ordinance empowers the Centre to prescribe terms and conditions and procedure for bidding which include production sharing or royalty payment or a combination of both.
“For the purpose of granting a mining lease in respect of any notified mineral in such notified area, the state government shall select, through auction by a method of competitive bidding , including e-auction …,” the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, said.
“The Centre shall prescribe the terms and conditions and procedure, subject to which the auction shall be conducted, including the bidding parameters for the selection, which may include a share in the production of the mineral, or any payment linked to the royalty payable, or any other relevant parameter, or any combination or modification of them,” it added.
The ordinance approves granting of mining leases for a period of 50 years. Those already granted before it would also be deemed to have been given for a period of 50 years.
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