The Mineral Laws (Amendment) Bill, 2020

Why in news?

• Parliament has passed The Mineral Laws (Amendment) Bill, 2020.

About Mineral Laws (Amendment) Bill, 2020

• The Mineral Laws (Amendment) Bill, 2020 effects amendments in Mines & Mineral (Development and Regulation) Act 1957 and The Coal Mines (Special Provisions) Act, 2015.
• The amended provisions clearly provide that companies which do not possess any prior coal mining experience in India and/or have mining experience in other minerals or in other countries can participate in auction of coal/lignite blocks.
• This will not only increase participation in coal/lignite block auctions, but also facilitate the implementation of FDI policy in the coal sector.
• Now, the companies which are not ‘engaged in specified end-use’ can also participate in auctions of Schedule II and III coal mines.
• The removal of the end use restriction would allow wider participation in auction of coal mines for a variety of purposes such as own consumption, sale or for any other purpose, as may be specified by the Central Government.
• The Bill also allows prospecting licence-cum-mining lease (PL-cum-ML) for coal/lignite which increases the availability of coal & lignite blocks, and coal blocks of varying grades in a wide geographical distribution will be available for allocation.
• With the amendments, environment and forest clearances along with other approvals and clearances shall automatically get transferred to the new owners of mineral blocks for a period of two years from the date of grant of new lease.
• The auction of lease of mines can now be started before expiry of lease period.

PRELIMS QUESTION:

Q. The recently passed Mineral Laws (Amendment) Bill, 2020 amends which of the following law/laws?

1. Mines & Mineral (Development and Regulation) Act 1957

2. The Coal Mines (Special Provisions) Act, 2015

Select the correct answer using the code given below:

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

Answer to Prelims question