The environment ministry has said state governments may apply as project proponents for mineral blocks with proven reserves, a move that would help reduce delays in production.
At present, as many as 20 approvals, including environment clearance (EC) and forest clearance (FC), are to be obtained by the successful bidder before signing a mining lease. "This is in reference to the discussion with Ministry of Mines...regarding auctioning of mineral blocks with pre-embedded clearances. The matter has been examined in the ministry and it is to inform that state governments/union territory (UT) administrations, after identifying the mineral blocks with proven reserves, may apply as project proponent, seeking prior environmental clearances," the environment ministry said.
The states/UTs concerned, after obtaining such prior EC as the case may be, may transfer the said prior-EC to a new user agency( successful bidder holding Letter of Intent), identified by states/UTs through the process of auctioning or any other legitimate means, the environment ministry said in an intimation to the Ministry of Mines. Similarly, the existing provisions under Forest (Conservation) Act, 1980 provides for state governments/UT administration to apply as user agencies seeking prior approval for use of forest land for non-forestry purposes in respect of identified mineral blocks, it said. "After obtaining such approval, state governments/UT administrations may transfer the said approval as per the relevant provisions under Forest Conservation) Act, 1980, and Rules & Guidelines made there under, to a new user agency, identified by the states/UTs through the process of auctioning or any other process as prescribed by the government," the environment ministry said.
According to the mines ministry, 95 mining leases have been allocated through auction since 2015. However, it has been observed that due to various processes involved, the time taken to operationalise the mines into production gets dragged on. The major challenge in this regard is to speed up the present procedural processes involved in obtaining statutory clearances from various authorities of the central and state governments by the successful bidder. The mines ministry said it has examined the ways to speed up the time taken for obtaining clearances to ensure early production. As a major policy intervention, the ministry has recently amended the MMDR Act 1957 through Mineral Laws Amendment Act 2020 wherein the valid rights and approvals of the previous lessee of brownfield mineral projects are facilitated to be transferred to the new lessee for a period of of two years.