Centre sets stage for mining reforms

The government plans to ease the process of composite exploration licences, smoothen mining clearances and relax the rules for captive mining, two people aware of the development said, outlining planned reform measures.

- Subhash Narayan

States may be allowed to grant composite exploration licences for high-value minerals such as gold, silver, platinum and copper, without seeking central permission. This is expected to enable states to put the blocks for composite licences in auction at a faster pace, the people cited above said on the condition of anonymity.

The Union cabinet has approved six key amendments to the Mines and Minerals (Development and Regulation) Act, 1957, and the bill is expected to be passed during the monsoon session. The amendment will also ease the forestry clearance process for mine reconnaissance and prospecting operations, making mineral exploration and production more attractive for private investors.