The Mines and Minerals (Development and Regulation Amendment) Bill, 2023 seeking to allow private players in exploration and production of deep-seated and critical minerals was introduced in Parliament on Wednesday.
With this, six more critical minerals — beryllium, lithium, niobium, titanium, tantallium, zirconium — will be opened up for the private sector for exploration and mining.
The amendments “would facilitate, encourage and incentivize private sector participation in all spheres of mineral exploration for critical and deep-seated minerals”, as per the statement of objects and reasons of the bill.
While the MMDR Act, 1957 has been amended several times earlier, the mineral sector need more reforms to increase exploration and mining of critical minerals essential for economic development and national security.
The blocks explored by the licence holder would be auctioned for mining lease within a prescribed timeline, which will fetch better revenue to the state governments. The exploration agency shall be entitled to a share in the auction premium payable by the mining lease holder, said the statement.
Critical minerals have gained significance in view of India’s commitment towards energy transition and achieving net-zero emission by 2070, it added.
The current share of deep-seated minerals like copper, zinc, lead, gold, silver, diamond, nickel, cobalt and platinum group of minerals in total mineral production of India is insignificant. Most of the requirements are fufilled through imports.
NK Premachandran of the Revolutionary Socialist Party said that the opening up of the mining and exploration of critical minerals to private players would benefit the the multinational corporations and would adversely affect public sector undertakings as well as the safety and security of the nation.
Joshi said no objection can be raised on the legislative competence of Parliament with regard to amending the mines and minerals law. The bill was introduced after a voice vote.
“This landmark amendment to the Mines and Minerals Act shall pave the way for accelerated discovery of critical minerals, particularly lithium. Enabling private sector participation will rapidly move us towards a larger proven reserve base, thus securing our energy future,” said Rakesh Surana Partner, Deloitte India.
“This strategic shift not only supports our national agenda of enhancing energy security and reducing import reliance, but also catalyses India’s transition towards a cleaner and more sustainable energy paradigm. The anticipated surge in mining activities will undeniably propel India towards sustainable progress and resource self-reliance,” he added.