Mines and Minerals Act 2015 (MDMR Act): Everything You Need To Know!

The Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act) was passed by the Indian Parliament. It was passed to govern the country’s mining industry. In 2015 and 2016, the Act had undergone amendments. The fundamental foundation for Indian mining regulation was provided by this regulation. Except for minor minerals and atomic minerals, all minerals are covered by this act. The Act also attempts to safeguard the safety of miners and the environment.

This topic of “Mines and Minerals (Development and Regulation) Amendment Act 2015” is important from the perspective of the UPSC IAS Examination. It is a part of the General Studies Paper 2 (Mains) and General Studies Paper 1 (Preliminary) exam. It is a part of the Governance section of the UPSC Exam. 

In this article, we will discuss the MMDR Act 2015, Its Overview, Significance, Amendments, and More! The MMDR Act is an act that regulates mining in India. The act has been amended over time to meet industry needs and challenges. 

About Mines and Minerals (Development and Regulation) Act, 1957

The Government of India introduced the Mines and Minerals (Development and Regulation) Act in 1957. It was introduced to manage and control minerals. It provided regulations for providing out mining leases and controlling mining actions. But, due to changing circumstances and requirements, amendments to the act were deemed necessary. 

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Amendments Made in the Mines and Minerals (Development and Regulation) Act, 1957

To address the shortcomings and complexities of the original act. The Act has been amended many times by MMDR Amendment Bill 2021, 2020, 2016, and 2015 to reform the mineral sector.

The 2015 amendment to the Mines and Minerals Act made changes to promote the following:

• Sustainable mining, 
• Transparency, and 
• The welfare of affected communities.

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Major Amendments of Mines and Minerals (Development and Regulation) Act 2015

The MMDR Act 2015 expanded the scope of the original act and introduced several key provisions, including:

• Mining License - Creation of New Category: The Mines and Minerals Act Amendment 2015 introduced the concept of “mining license” as a new category, allowing for greater participation and ease of obtaining licenses for mining operations.
• Maximum Area - Amended: The maximum area that can be granted for mining leases was increased, providing more opportunities for the exploration and extraction of mineral resources.
• Creation of New Institutions: The amendment established the National Mineral Exploration Trust (NMET) and the District Mineral Foundation (DMF) to promote sustainable development, fund welfare projects, and address the concerns of mining-affected communities.
• Notified Minerals and Other Minerals – Auctions: The amendment mandated the auctioning of certain minerals, ensuring a transparent and fair process for their allocation. This helped in reducing discretion and preventing illegal mining activities.

The following are some of the key MMDR Act Amendment highlights:

• Introduction of a new system of auctioning major mineral blocks: In 2015, a new system for auctioning major mineral blocks was introduced. Mineral blocks are auctioned to the highest bidder under the new system. The system ensures efficient and capable companies receive allocated blocks.
• Strengthening of environmental regulations: The 2015 amendment also strengthened the environmental regulations for mining. Mining companies must get environmental clearances from the Central Government before starting operations, as per the Act. The Act mandates mining companies to follow environmental standards while mining.

The 2015 amendment to the MMDR Act was aimed at bringing transparency and accountability to the mining sector. The auction of major mineral blocks was introduced to ensure that the blocks were allocated to the highest bidder. The creation of the DMFs was aimed at ensuring that the benefits of mining are shared with the local communities. 

Learn more about the Mines and Minerals Amendment Bill 2021!

Significance of MMDR Act 2015

The Mines and Minerals Development and Regulation Act 2015 holds immense significance in the mining sector. The goal is to encourage mining that is responsible and sustainable. The act protects the communities affected by the mining sector. The Act ensures transparency and accountability in how the mineral resources are used.

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Criticism of MMDR Act 2015

The Mines and Minerals (Development and Regulation) Act, 2015 (MMDR Act), has been the subject of criticism since its enactment. Some of the key criticisms include:

• The act has been criticized for centralizing the allocation of mining leases. This was previously done by state governments. This has raised concerns about the erosion of state autonomy and the potential for environmental damage in areas under state control.
• The act has been criticized for its lack of transparency in the auction process for mining leases. Critics argue that the process is not transparent enough and that there is a lack of accountability. 
• The act does not do enough to protect the environment from the harmful effects of mining. 
• The act does not require companies to put enough money aside for rehabilitation and reclamation activities. 
• Critics argue that the act does not adequately protect the rights of tribal communities who live in areas rich in mineral resources. 

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Conclusion

The Mines and Minerals (Development and Regulation) Act 1957 and its subsequent amendment in 2015 play a crucial role in regulating the mining sector in India. These laws aim to strike a balance between resource extraction and sustainable development while safeguarding the rights and interests of all stakeholders involved.

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