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Clear lacunae in MMDR Act: Experts

The Hitvada Business Bureau | June 29-06-2022
The MMDR Act has certain provisions which are not conducive to mining and the nation’s economy at large. As a result, a drastic fall is being witnessed in mining output, and also a significant drop in employment in the mining sector. While the aims were sound and noble, the lacunae that crept into the acts and laws have negated several aspects which are the very foundation of nobility that the sector could have stood on, said Shivkumar Rao, President, Vidarbha Economic Development Council.

VED members, Chairman of the VED Mining committee, B K Shukla and Committee senior member Arun Deoras, highlighted a few of the salient features that stand out as problems faced by the mining sector. Obviating these obstacles will be helpful in mining, making the auction process more dynamic and will create a win-win situation for the Govt. and miners, they felt. According to them, “mineable mineral reserves” vis-à-vis “estimated mineral resource” are creating problems. The expression “mineable mineral reserve” means the economically mineable part of an “estimated mineral resource” of an area.

However, an amount equal to 0.50% of the “sale value of the estimated mineral resource” is required to be paid as auction premium as upfront payment, reserve price for bidding, performance security, net worth requirement to determine the eligibility for participation in the auction (which varies from 0.5% to 2%) and registration charges for mining lease agreement.

When extraction of a mineral is possible only up to the “mineable mineral reserve”, certainly it is unfair and does not make sense to compel bidders to pay charges / processing fee based on sale value of the entire ‘estimated quantity of mineral resources,” they pointed out.

They suggested that taxes, charges, processing fee, security deposit should be levied for mineable resources of minerals. Under section 26 of MMDRAct-2015, both the Central Government and State Government are authorised to exercise powers conferred under MMDR Act-2015. It is suggested this section should also contain a time-limit for disposal or completion of the said subject matter.

Apart from this, the penalty prescribed in section 21 of the Act is too harsh when compared to the severity and gravity of the offence of the same quantum of punishment mentioned in other criminal laws.

Odisha’s Tribe Advisory Council meeting yet to convene even after 4 years

The Hindu || June 28, 2022

Opposition tribal MLAs train guns at the Naveen Patnaik Government for ignoring tribal cause by not constituting TAC in the State
The Naveen Patnaik-led Odisha Government, which is supporting Droupadi Murmu’s candidature in the ensuing presidential poll underlining its empathy for tribal cause, has failed to convene a single meeting of Tribe Advisory Council during past four years.

In fact, the new TAC has not been formed in Odisha after State elections in 2019. Formation of the TAC is a constitutional provision which is part of Administration of Schedule Areas and Tribal Areas. The TAC meeting is required to be convened twice in a year.

As per TAC mandates, all issues related to tribes are put up in the meeting. This is the highest body that adopts resolution on any kind of new schemes and programmes those are going to be implemented in tribal areas.

“Not holding TAC for past four years is one of the biggest deviations which has been made behind in Odisha especially when it is home to third largest tribal population of India and has most diverse tribal population having 62 tribes including 13 particularly vulnerable tribal groups,” said Mohan Charan Majhi, Bharatiya Janata Party Chief Whip in State Assembly and a Tribal MLA.

The ST and SC Development, Minorities and Backward Classes Welfare Department has published proceedings of 17 TAC meetings since June 26, 2000. In the decade between 2000 and 2010, TAC sat for 12 times and in the next decade (2010-2020), the number came down to five. The last TAC meeting was held on June 28, 2018.

Mr. Majhi said this shows how serious Odisha government was for tribal cause. According to a senior government functionary, “the State government created Special Development Council (SDC) in nine most thickly tribal populated districts. The SDC creation was not placed for TAC’s approval, which is a also gross violation of any work and scheme required to be implemented in scheduled areas.”

There are 117 blocks in nine tribal dominated districts. Out of 117 blocks, 112 come under tribal sub plan blocks. Opposition party MLAs questioned as to how government has implemented different programmes in 112 TSP blocks without taking TAC into confidence.

“The major reason behind government not constituting TAC is that it does not want to face embarrassment. Although TAC is chaired by Chief Minister, tribal MLAs belonging to Opposition parties tend to ask uncomfortable questions in council meeting which punctures big claims of the government,” they said.

Baripada MLA Prakash Soren, “tribal population face problem in implementation of drinking water projects, irrigation and mother tongue based multilingual education. The government has failed to provide proper price to tribal for their minor forest produces.”

“The TAC is the appropriate forum where these tribe specific problems can be raised. After so many years of Independence when tribes have not learnt State’s official Odia language, whom they would approach to with their basic issues? In absence of such forum, the grievance could not be redressed. The government has ignored role of people’s representative,” said Mr. Soren.

Budhan Murmu, Saraskana MLA, said, “The provision of (Extension to the Scheduled Areas) Act, 1996 came into force on December 24, 1996. The State government has not yet framed PESA Rules even after 25 years. TAC needs to discuss these issues.”

“Moreover, people belonging to tribes have been demanding flexibility in land sale and mortgaging rules. Tribes in urgent requirement of fund for education and medical expenses cannot sell their property. Even the mortgaging of land is not easy. This issue has been discussed in previous TAC meetings. But, no final decision has been taken in this regard. We need to deliberate on the issue on regular basis,” said Mr. Murmu.

Govt receives 38 bids for commercial coal mine auction

The Hindu Business Line | June 27, 2022

The online bids received for the coal mines will be opened on Tuesday (June 28).
The Coal Ministry on Monday said it has received 38 bids under three tranches of commercial coal mine auctions. The last date for submitting online and offline technical bids ended on June 27 and the online bids received as part of the auction will be opened from Tuesday.

“The Fifth Tranche, Second Attempt of Fourth Tranche and Second Attempt of Third Tranche of commercial coal mine auctions were launched by the Nominated Authority, Ministry of Coal on March 30, 2022,” Coal Ministry said in a statement.

Under the Fifth tranche of auctions, a total of 28 offline bids were received against 15 coal mines, where 2 or more bids have been received for eight coal mines, while under the second attempt of the Third tranche, a total of nine coal mines were put up for auctions and six bids have been received against six coal mines.

In the second attempt of the Fourth Tranche (auction), a total of 4 coal mines were put up for sale and four bids have been received against 3 coal mines, the ministry said.

The Centre launched the actions for commercial coal mining in June 2020 under the CMSP Act and the MMDR Act. Under the commercial coal mining auction process, around 42 coal mines have been successfully auctioned so far with a total cumulative PRC (peak rate capacity) of 86.404 million tonnes per annum (MTPA).

The ministry’s view is that a coal mine auction for the sale of coal would drive competition and adopt best practices in mining as well as environment management. Auction of coal mines in a transparent manner is expected to encourage transparent pricing of coal, based on market forces.

The demand for coal is higher than the current level of domestic supply of coal in the country. The gap between demand and domestic supply of coal cannot be bridged completely as there is insufficient availability and reserve of prime coking coal.

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