While it was approved by Lok Sabha last month, the Rajya Sabha passed by passed it by a voice vote.
Union Minister for Coal and Mines Pralhad Joshi moved the The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, when Rajya Sabha reassembled in for the post-lunch period.
“The mineral sector requires certain more reforms particularly for increasing exploration and mining of critical minerals that are essential for economic development and national security in the country,” the bill read.
It proposes to insert the provision of an exploration licence only for deep-seated and critical minerals in the law. This license will be granted through auction for undertaking reconnaissance and prospecting operations.
The bill also empowers the central government to exclusively auction mining lease and composite licence for certain critical minerals.Deep-seated minerals include gold, silver, copper, zinc, lead, nickel, cobalt, platinum group of minerals, diamonds, etc, which are difficult and expensive to explore and mine as compared to surficial or bulk minerals.Having been approved by the Union Cabinet earlier this month, with the amended bill, companies will now be allowed to suggest areas they want to explore, and eventually mine in India, as per the changes. This is a deviation from the usual practice where blocks or mines are defined by the government to be taken up for auction.
Critical minerals have gained significance in view of India’s commitment towards energy transition and achieving net-zero emission by 2070.
(With PTI inputs)