Coal news and updates

Bill to introduce auction of mines passed by LS

March 4: : A Bill seeking to introduce the system of auction of mines to enhance transparency and augment mineral production was passed in the Lok Sabha on March 4, with the government terming it a "revolutionary" step.

The Mines and Minerals (Development and Regulation) Amendment Bill, 2015, which will replace an Ordinance promulgated in January, was passed amid vociferous protests by members of the Trinamul Congress (TMC), Biju Janata Das (BJD) and the Revolutionary Socialist Party (RSP).

Wrapping up the debate on the legislation, Steel and Mines Minister Narendra Singh Tomar said the Bill, once enacted, will increase transparency, end discretion, augment production and benefit the local population.

Noting that iron ore production had gradually declined to 152 million tons in 2013-14 from 218 million tons in 2009-10 and its exports fell to 16 million tons from 47 million tons, he said the Ordinance was the need of the hour as the crisis in the mining sector has been increasing.

"The sector contributes over 2% of the GDP but it was in deep crisis. It is one of the biggest employers and its revival will give jobs to our youth," Tomar said.

The Bill envisages spending of a fixed percentage of revenue generated from mining on the development of local area and abolition of discretionary powers enjoyed by governments, which, Tomar said, abetted corruption.

A Bill brought by the erstwhile UPA government also ostensibly sought auction but left many windows open to favouring a few, the minister claimed.

"We have ceded many powers to the states. We have also kept some as we cannot wash our hands of our responsibilities. We have taken into account the suggestions of the states and other bodies and this Bill is a revolutionary step,” he said.