Employment opportunities will be created in the mining sector, the government amended the law rela

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Highlights

  • This will reduce the import of these minerals and will also create employment opportunities.
  • With this approval of the cabinet, the deposits of these minerals will be auctioned.
  • Many state governments have identified such mineral blocks for auction.

new Delhi. The Union Cabinet on Wednesday approved amendments to the Mines and Minerals (Development and Regulation) Act, 1957 to clarify the rate of royalty in respect of certain minerals. This will pave the way for auction of deposits of these minerals. Mines and Minerals (Development and Regulation) to clarify the rate of royalty in respect of certain minerals like gluconite, potash, emerald, platinum group metals (PGM), andalusite, silymite and molybdenum in a cabinet meeting chaired by Prime Minister Narendra Modi. The amendment to the Second Schedule to the ) Act, 1957 was approved. With this approval of the cabinet, auction of these minerals will be done. This will reduce the import of these minerals as well as create employment opportunities in the mining sector.

Dependence on imports will be reduced

With this approval, the domestic option of importing these minerals required for the economy will also be created. In this way valuable foreign exchange will be saved. Local production of these minerals will reduce dependence on other countries. This act was amended in the year 2015 to move ahead in the new era of mineral concessions. The auction method was adopted to ensure transparency and a non-discriminatory process in the allocation of mineral wealth of the country. This act was again amended in the year 2021 to further accelerate the mineral sector. During this time the government promoted the auction of mineral deposits, increased production, improved ease of doing business in the country and increased the contribution of mineral production to the Gross Domestic Product (GDP).

completely dependent on imports for these minerals

In the case of gluconite, potash, emerald, platinum group metals (PGM), andalusite, silymite and molybdenum, the country is completely dependent on imports to meet its requirements. For mineral self-sufficiency, many state governments have identified such mineral blocks for auction. The Ministry of Mines had proposed a rational rate of royalty to increase participation in the auction, which has been approved by the Union Cabinet. These rates have been fixed after detailed consultation with the State Governments and various Ministries/Departments of the Central Government. The Ministry of Mines will provide the methodology for computing the Average Selling Price (ASP) of these minerals, which is required to initiate the auction of these mineral blocks.



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