The Author, Shreya Shreeja is a 3rd-year student of B.A.LL.B.(H) at the School of Law, Narsee Monjee Institute of Management Studies, Bangalore. She is currently interning with LatestLaws.com.
- How many Sections and Chapters are present in the Mines and Minerals (Development and Regulation) Act of 1957?
The Mines and Minerals (Development and Regulation) Act of 1957 has a total of 33 Sections, incorporated within VII Chapters.
- Why did the Mines and Minerals (Development and Regulation) Act, 1957 come into force?
The aforementioned act, mostly referred to as the MMDR Act, was enacted by the Government of India for the regulation of the utilization and development procedure regarding the minerals found all across India. The act also deals with the regulation with respect to the grant of mining leases and licenses, along with the promotion of sustainable mining practices.
- What is the major objective of the MMDR Act?
As a part of the major objective, the MMDR Act aims at the regulation of India’s mining sector by introducing a legal framework for the methodical and planned evolution of mineral resources. This is to prevent unlicensed mining practices and foster conservation of mining along with the promotion of responsible mining practices.
- What are the types of minerals dealt with under the MMDR Act of 1957?
Minerals are defined under Section 3(ad) of the MMDR Act of 1957. All the prime minerals found all across the country are dealt with under this act. These include bauxite, iron, coal, gold, limestone, iron ore, etc. Similarly, minor minerals, as defined under Section 3(e), with the likes of gravel, ordinary clay, and ordinary sand used for building and construction purposes also fall under this act.
- What role does the National Mineral Policy play?
The main aim of the National Mineral Policy is to enhance the country’s GDP with the assistance of increased mining activities. This also aims towards the promotion of sustainable mining sector development.
- Who has the power to make Rules for the grant of concessions with regard to the extraction of minor metals?
The State Governments under Section 15 of the MMDR Act.
- How are mining operations regulated through the MMDR Act?
Through the help of this act, both the State and Central governments grant licenses and leases for mining, as well as for the extraction of minerals. The act has specifically laid down the obtainment process for the leases, as well as the duration, the terms as well as the conditions, along with making it mandatory to establish regulatory bodies and mechanisms for the purpose of overseeing such mining activities. All this is supposed to be done while keeping into consideration the environmental factors as well as the rehabilitation of the areas affected.
- How are the interests of the affected as well as local communities addressed by the MMDR Act?
Section 9B of the MMDR Act talks about the District Mineral Foundation. This foundation is essentially set up in mining-affected areas. The major object of DMF is to work in the direction of the benefit of the local, affected communities, as well as the areas that are detrimentally affected by such mining operations. The contributions from mining companies are responsible for funding the DMF.
- What is the number of districts that have set up DMFs in the country?
So far, a total of 626 districts in 23 States have set up DMFs all across the country.
- In what way does the MMDR Act address concerns related to the environment?
The MMDR Act of 1957 has numerous provisions that deal with environmental concerns. It ensures that the mining lease holders cohere to the necessary protection measures related to the environment, as well as restoration of the adversely affected areas. Not complying with the same could attract penalties with the likes of cancellation of the mining leases.
- Is it possible for a company to hold multiple mining leases in various states?
Yes, it is allowed for one company to hold multiple mining leases in various states, given that they adhere to the given legal requirements as well as meet the eligibility criteria of the same.
- What is the National Mineral Exploration Trust?
National Mineral Exploration Trust (MET), as discussed under Section 9B of the MMDR Act, is a non-profit entity, set up by the Central Government for regional and comprehensive exploration of minerals with the use of funds, as per the manner established as per the Central Government.
- How is transparency in mining operations promoted by the MMDR Act?
Transparency in the allocation of mining leases is ensured by the act with the help of auctions as well as bidding. The main aim of this is the prevention of unrestricted practices and to promote the bona fine allocation of minerals.
- Does the MMDR Act impose any restrictions on the exporting of minerals mined throughout the country?
Yes, as per the MMDR Act, the Central Government has the authority to impose restrictions on the exporting of minerals mined in India, depending on the national interest as well as the availability of the same.
- What penalties are attracted for violating the provisions listed under the MMDR Act?
Violations with the likes of unauthorized mining, illegal mining, and non-compliance with the leasing conditions can attract penalties under the MMDR Act. These penalties are listed under Section 21, which are imprisonment for a term extendable to two years, or a fine which may extend to fifty thousand rupees, or both. Offences that are mentioned under sub-section (1) of Section 21 would fall under the category of cognizable offence.
