india

Updated: Oct 02, 2019 09:48 IST

The Ministry of Mines has amended the Mineral (Mining by Government Company) Rules 2015, to ensure raw material security and seamless renewal of mining leases allocated to public sector companies, a government statement said.

The amendment implies that all mining leases for minerals granted to government companies shall extend the mining lease for a period up to 12 years at a time. The extension is conditional, provided the mining firm makes an application to the state government at least 12 months prior to the expiry of the mining lease, it said.

The changes were made after minister of petroleum and steel Dharmendra Pradhan took up the matter with the minister of parliamentary affairs, coal and mines Pralhad Joshi, it said.

“Soon after assuming charge, minister Pradhan took up raw material security for the Indian steel sector on priority,” it said.

In another recent order, SAIL has also been allowed to offload in a year a quantity equivalent to maximum 25% of total iron ore production in the previous year, subject to clearance from the respective state governments, where the mines are located, it said.

As per provision of Section 8A(6) of Mines and Minerals (Development & Regulation) Act, 1957 ( or MMDR Act, 1957), the lease of 31 working mines of iron ore are expiring on March 31, 2020.

Recent orders passed by the Ministry of Mines are important steps towards ensuring raw material security for Indian steel industry and effective management of situation in wake of probable disruptions in March 2020. “It will also ensure price stabilisation of raw materials and will have positive effect on the secondary steel sector,” it said.

Pradhan said, “It is an important step towards ensuring raw material security for steel PSUs [public sector undertaking]. This will also ensure price stabilisation of raw materials and will have positive effect on the secondary steel industry. We are committed to ensuring raw material security for the Indian steel industry.”