Amendment in MMDR Act approved
GS Paper - 2 (Polity)
The Union Cabinet approved a proposal to amend the Second Schedule to the MMDR Act to specify the royalty rates of certain minerals, including potash, emerald and platinum group of metals. The approval would ensure auction of mineral blocks in respect of glauconite, potash, emerald, platinum group of metals, andalusite and molybdenum thereby reducing imports of these minerals.
- The approval of Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 will help generate empowerment opportunities in the mining sector as well as the manufacturing sector which will further help in ensuring inclusive growth of a large section of the society.
- The Mines Ministry had proposed reasonable rates of royalty in order to encourage better participation in the auction of mines.
- The Ministry of Mines will provide methodology for calculation of average sale price rice (ASP) of these minerals required for enabling auction of these mineral blocks.
- The government said more than 146 blocks have been put up for auction in the financial year 2021-22. Of this, 34 blocks have been successfully auctioned in the financial year.
- Specification of royalty and ASP for the minerals like glauconite/potash, emerald, platinum group of metals (PGM), andalusite and molybdenum would increase the number of blocks for auction.