The Coal Mines (Special Provisions) Act, 2015

Parliament enacted the Coal Mines (Special Provisions) Act, 2015 in March 2015 containing provisions enabling the government to allocate coal mines through auctions. The law also permitted private players to mine coal for use in their own cement, steel, power or aluminium plants.

• The Act amends the Coal Mines (Nationalization) Act, 1973 and the Mines and Minerals (Development and Regulation) Act, 1957. On 20 February, 2018, the Cabinet Committee on Economic Affairs (CCEA) permitted private firms to enter the commercial coal mining industry in India.

Mines and Minerals (Development and Regulation) Amendment Act 2021

On 22^nd March, 2021, the Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2021, bringing in many reforms to India’s untapped mining industry.

• The Mines and Minerals (Development and Regulation) Amendment Act 2021 amends the Mines and Minerals (Development and Regulation) Act, 1957.

Need: Untapped Mining Potential: Mining in India contributes to only 1.75 per cent of the GDP, while the share for countries like Australia and South Africa is about 7 per cent of the GDP.

India produces 95 minerals and has same potential like South Africa and Australia but the mining sector was under-explored and India still had to import minerals like gold and coal.

• Huge Import Dependency: India produces coal worth Rs 1.25 lakh crore, yet heavily imports it despite being the third largest storehouse of coal in the world.
• Growing Environmental Concerns: A lot of mining activities are done illegally which can be devastating for the environment.

Objectives: Permitting removal of restriction on end-use of minerals.

• Enabling captive mines to sell up to 50% of their annual mineral production in open markets.
• Easing the process of statutory clearances by allowing its transfer from one lessee to another.
• Allowing private companies to enter mining exploration; etc.