The Ministry of Mines on 9th November 2021 has notified the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 to amend The Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016 with the objectives of increasing employment and investment in the mining sector, increase revenue to the States, increase the production and time bound operationalisation of mines, increase the pace of exploration and auction of mineral resources, etc.
The New rule, notifies the manner of sale of 50% of mineral produced from the captive leases. With this amendment, the Government has paved the way for releasing of additional minerals in the market by greater utilization of mining capacities of captive mines. The allowance for sale of prescribed quantity of mineral shall also motivate the lessees to enhance the production from the captive mines. Further, payment of additional premium amount, royalty and other statutory payments in respect of the quantity sold shall boost the revenue of the State Governments.
Further certain provisions are added to allow disposal of overburden/ waste rock/ mineral below the threshold value, which is generated during the course of mining or beneficiation of the mineral. This will enable ease of doing business for the miners.
Penalty provisions in the rules have been rationalized. Previously, the rules provided for penalty of imprisonment upto 2 years or fine upto 5 lakh rupees or both for violation of each and every rule irrespective of the severity of the violation. Amendment in the rules categorized the violations of the rules under the following major heads:
- Major Violations: Penalty of imprisonment, fine or both.
- Minor Violations: Penalty reduced. Penalty of only fine for such violations prescribed.
- Violation of other rules has been decriminalized. These rules did not cast any significant obligation on the concession holder or any other person. Thus, violation of 49 rules has been decriminalized.
