Mines and Minerals (Development and Regulation) Act of 1957 (MMDR Act)
GS II: Governance
- The Mines and Minerals (Development and Regulation) Act of 1957 (MMDR Act) is a crucial legislation enacted by the Government of India to regulate the development and management of mines and minerals in the country.
- The primary objective of this act is to ensure the systematic exploration, exploitation, and conservation of minerals, as well as the protection of the environment and the interests of the local communities and stakeholders.
Key provisions and features of the Mines and Minerals (Development and Regulation) Act, 1957
- State Ownership of Minerals: The act declares that all minerals found in the subsoil of any land within the territorial waters or the continental shelf of India are the property of the State.
- Mineral Concession System: The act provides for the grant of mineral concessions, such as mining leases and prospecting licenses, by the State Governments for the exploration and extraction of minerals.
- Central and State Government Jurisdiction: The act divides responsibilities between the Central Government and State Governments for the regulation and development of minerals. The Central Government formulates policies, and State Governments implement them.
- Competitive Bidding: To promote transparency and efficiency in allocation, the amendment to the act in 2015 introduced the provision of allocating mineral concessions through a process of competitive bidding.
- Renewal and Extension of Leases: The act allows for the renewal and extension of mining leases, subject to compliance with certain conditions and requirements.
- Environmental and Social Obligations: The act mandates the adoption of environmentally sustainable practices by mining leaseholders and also emphasizes the welfare of local communities affected by mining activities.
- Mining Surveillance System (MSS): The government implemented the MSS to monitor and curb illegal mining activities using remote sensing technology.
- National Mineral Exploration Policy (NMEP): In 2016, the NMEP was introduced to enhance mineral exploration in the country through the involvement of private and public sector entities.
- District Mineral Foundation (DMF): The amendment in 2015 introduced the DMF, which aims to address the concerns of people affected by mining by utilizing a portion of the mining royalty for their welfare and development.
- National Mineral Policy: The MMDR Act, along with the National Mineral Policy, guides the overall mineral sector governance and development in India.
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