Illegal mining of minerals has been impacting various industries as well as the country’s economy, and the amendment will strengthen the monitoring mechanism for end-to-end accounting of minerals produced, traded or exported, and consumed in India
The government has amended Rule 45 of the Mineral Conservation and Development Rules (MCDR), 1988, to check illegal mining in the country.
The Ministry of Mines, after consultation with various State governments and Central ministries, has amended the above Rule to strengthen the monitoring mechanism for end-to-end accounting of minerals produced, traded or exported, and consumed in the country.
Illegal mining of minerals has been impacting various industries as well as the country's economy, as this activity has been taking place in rich mineral-producing, but poor economic states-mainly in Jharkhand, Orissa, Chhattisgarh and West Bengal.
In November last year, the Central government appointed MB Shah, retired Judge of the Supreme Court-led Commission to probe into the illegal mining of iron & manganese ore in various States, to curb illegal activities.
Mr Shah has been asked to submit a report in 18 months, and file an interim report, if required.
According to the amended Rule 45 of the MCDR, miners, traders, stockists, consumers and exporters of minerals have to be registered with the Indian Bureau of Mines within one month from the date of commencement of these rules.
Under this amended Rule, it will be compulsory to file monthly returns and annual returns inter-alia, requiring mines to submit details on production of minerals, sale of minerals, consumption of minerals and in case of traders, stockists and exporters of minerals, the source of minerals, sale/export of minerals or end-use of the same.
Failure to file returns would lead to-in case of mining leases-suspension of mining licences, and in case of traders, stockists and exporters, the licences granted by the State government, according to the amended Rule 45 of the MCDR.
The Ministry of Mines is of the view that the amended Rule 45 of MCDR will help various State governments to closely monitor the mining business across the country. The Ministry also believes that these changes will improve revenue realisation and narrow the scope for illegal mining.
After receiving reports from various States, the Centre has noticed that poor regulation of the mining sector at the field level incites illegal mining.
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