The Ministry of Coal on August 6, 2021 has issued Draft Mineral Concession (Amendment) Rules, 2021 to further amend the Mineral Concession Rules, 1960.
The draft introduced the following amendment in the Mineral Concession Rules, 1960 are as follows: -
• In Rule 2(1) (viia) which specifies “run-of-mine” means the raw, unprocessed or uncrushed material in its natural state obtained after blasting or digging, from the mineralized zone of a lease area”, has been inserted.
• The Rule 24C which specifies “Period of mining lease granted to Government companies or corporations”, has been inserted, namely: -
• All mining leases granted on or after commencement of the Mineral Concession (Amendment) Rules, 2021 to a Government company or corporation for coal or lignite shall be for a period of fifty years.
• All subsisting mining leases granted to a Government company or corporation before commencement the Mineral Concession (Amendment) Rules, 2021 for coal or lignite shall be deemed to have been granted for fifty years or till 31st March 2030.
• If an application for extension of mining lease made within the time referred to in sub-rule (3) is not disposed by the State Government before the date of expiry of the lease, the period of that lease shall be deemed to have been extended till the State Government passes an order of extension.
• The Rule 27A which specifies “Manner of sale of coal or lignite by the lessee of a captive mine”, has been inserted: -
• Any lessee may, where coal or lignite is used for captive purpose, sell coal or lignite up to such per cent. of the total coal or lignite produced in a financial year, as allowed under sub-section (5) of section 8, after meeting the requirement of the end use plant linked with the mine.
• The lessee shall pay to the State Government, at the time of payment of royalty, an additional amount as specified in the Sixth Schedule of the Act, which is in addition to royalty or payment to the District Mineral Foundation and National Mineral Exploration Trust or any other statutory payment or payment specified in the tender document or the auction premium.
• It is clarified that the provision for sale of coal or lignite as prescribed in this rule shall not affect the eligibility conditions and efficiency parameters prescribed in the respective agreements entered by the lessee with the Central Government.
• Sale of coal shall not be allowed from the coal mines allotted to a company or corporation that has been awarded a power project on the basis of competitive bid for tariff (including Ultra Mega Power Projects).
• In Rule 28 which specifies “Lapsing of Leases”, has been subsisted.
• In Rule 28A which specifies “Lapsing of leases “, has been omitted.
• In Rule 64B which specifies “Charging and instance of payment of royalty in case of minerals subjected to processing”, has been substituted.
• In Rule 64C which specifies “Royalty on tailings or rejects “, has been omitted.
• Form R which specifies “Annual Return”, has been inserted.
The Objections and suggestions which will be given by the person affected on the said draft rules shall be taken into consideration on or after the expiry of a period of thirty days which may be addressed to the Under Secretary (P&S-I section), Ministry of Coal, Government of India, Room No.350, A-wing, ShastriBhawan, New Delhi 110001 or emailed at [email protected].
[Notification No- G.S.R. 542(E)]
