Ministry of Mines (India) explained

Agency Name:Ministry of Mines
Seal:Government of India logo.svg
Jurisdiction:Government of India
Headquarters:Shastri Bhawan, New Delhi
Chief1 Name:G. Kishan Reddy
Chief1 Position:Minister of Mines
Website:mines.gov.in
Budget: (2018-19 est.)[1]
Chief2 Name:Satish Chandra Dubey
Chief2 Position:Minister of State

The Ministry of Mines is the ministry in the Government of India. The ministry functions as the primary body for the formulation and administration of laws relating to mines in India. The head of the ministry is G. Kishan Reddy, who has been serving since June 2024.

Functions

The Ministry of Mines is responsible for surveying and exploring for minerals (other than natural gas and petroleum) that are used in mining and metallurgy. It searches for non-ferrous metals including: aluminium, copper, zinc, lead, gold, nickel, etc. for administration of Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) in respect of all mines and minerals other than coal and lignite. There is one attached office, one subordinate office, three public sector undertakings (PSUs), three autonomous bodies, and additional agencies working under the support of the Ministry of Mines.

Attached office

Subordinate office

Public sector undertakings

Autonomous bodies

Registered society (autonomous & self funding)

The subject of ‘mineral regulation and development’ occurs at Serial Number 23 of the State list in the VIIth schedule to the Constitution. However the Constitution circumscribes this power, by giving Parliament the power under S.No. 54 of the Union list in the VIIth schedule, to enact legislation, and to this extent the States will be bound by the Central legislation. The MMDR Act is the main Central legislation in force for the sector. The Act was enacted when the Industrial Policy Resolution, 1957 was the guiding policy for the sector, and thus was aimed primarily at providing a mineral concession regime in the context of the metal making public sector undertakings. After the liberalization in 1991, a separate National Mineral Policy (NMP) was promulgated in 1993 which set out the role of the private sector in exploration and mining and the MMDR Act was amended several times to provide for a reasonable concession regime to attract the private sector investment including FDI, into exploration and mining in accordance with NMP 1993.

National Mineral Policy

The first National Mineral Policy was enunciated by the Government in 1993 for liberalization of the mining sector. The National Mineral Policy, 1993 aimed at encouraging the flow of private investment and introduction of state-of-the-art technology in exploration and mining.

In the Mid-Term Appraisal of the Tenth Five-Year Plan, it was observed that the main factors responsible for this were procedural delays in the processing of applications for mineral concessions and the absence of adequate infrastructure in the mining areas. To go into the whole gamut of issues relating to the development of the mineral sector and suggest measures for improving the investment climate the Mid-Term Appraisal had proposed the establishment of a High Level Committee. Accordingly, the Government of India, Planning Commission, constituted a Committee on 14 September 2005. under the Chairmanship of Shri Anwarul Hoda, member, Planning Commission. The Committee made detailed recommendations on all of its terms of Reference in December 2006. Based on the recommendations of the High Level Committee, in consultation with State Governments, the Government replaced the National Mineral Policy, 1993 with a new National Mineral Policy on 13 March 2008.

The National Mineral Policy 2008 provides for a change in the role of the Central Government and the State Governments to incentivize private sector investment in exploration and mining and for ensuring level playing field and transparency in the grant of concessions and promotion of scientific mining within a sustainable development framework so as to protect the interest of local population in mining areas. This has necessitated harmonization of legislation with the new National Mineral Policy.

Policy reforms

The Hoda Committee studied the various reports prepared and submitted by study groups and in- house committees set up by various Ministries from time to time on the issues before the Committee. The Committee gave consideration to the mineral policies of the States as presented by the State Governments, especially to the differing perceptions of mineral-rich and non mineral-rich states. The Committee also gave consideration to the papers prepared by FIMI, which provided comparative analyses of the mineral policies and statutes of other major mineral producing countries in the world such as Australia, Canada, Chile, and South Africa.

Legislation

The Mines and Minerals (Regulation and Development) Act, 1957 was enacted so as to provide for the regulation of mines and development of minerals under the control of the Union. The Act has been amended in 1972, 1986, 1994, 1999 and 2004 in keeping with changes in the policy on mineral development. It has been recently amended in 2016 to make fundamental changes.

Legislative reform

Since that the existing law had already been amended several times and as further amendments may not clearly reflect the objects and reasons emanating from the new Mineral Policy, Government decided to reformulate the legislative framework in the light of the National Mineral Policy, 2008 and consequently, the Mines and Minerals (Development and Regulation) Bill was drafted in 2009-10 by the then Secretary Mines, S. Vijay Kumar,[6] [7] in consultation with the stakeholders. Government then constituted a Group of Ministers, chaired by the Minister of Finance (comprising Ministers of Home, Environment & Forest, Mines, Steel, Coal, Tribal Affairs, Law etc.) which harmonized the views of the Ministries and the final draft as approved by the Cabinet in September 2011, was introduced in Parliament in November 2011.

The Mines and Minerals (Development and Regulation) Bill, 2011, inter alia, provides for the following, namely

A notable feature of the Bill is to provide a simple mechanism which ensures that revenues from mining are shared with local communities at individual as well as community level so as to empower them, provide them with choices, enable them to create and maintain local infrastructure and better utilize infrastructure and other services provided for their benefit. The Bill after introduction in Parliament in November 2011, was referred to the Department–related Parliamentary Standing Committee ("Standing Committee") which after eliciting the views of all stakeholders, submitted its Report.

Elections in 2014, however led to the Bill lapsing, and the new NDA Government used its majority to effect amendments in the MMDR Act. The most important amendment has been to make auctions the only way to get mineral concessions at prospecting and mining stages. Some auctions have been held, but the industry view seems to be that auctions are likely to lead to delays and supply interruptions, and that the auction is adding to the burden of taxes on mining. Auctions at mining lease stage are also disincentivising exploration by private sector.[8]

Mining within a sustainable development framework

The Hoda Committee made important recommendations on the need for a Sustainable Development Framework (SDF), as follows:

""The Ministry of Mines and MOEF should jointly set up a working group to prepare a SDF specially tailored to the context of India’s mining environment, taking fully into account the work done and being done in ICMM and the IUCN. The Indian SDF principles, reporting initiatives, and good practice guidelines unique to the three sectors in Indian mining, i.e. SME, captive, and large stand alone, can then be made applicable to mining operations in India and a separate structure set up to ensure adherence to such framework, drawing from both IBM and the field formations of MOEF.• The aspect of social infrastructure in the form of schools, hospitals, drinking water arrangements, etc. needs to be addressed within a formalised framework on the lines of the ICMM model. The Samatha ruling requiring mining companies to spend a set percentage of their profits on model programmes for meeting local needs through a pre-determined commitment, is one option for the country as a whole. Another option could be to require the mining companies to spend a percentage, say three per cent, of their turnover on the social infrastructure in the villages around the mining area. The working group mentioned in paragraph 3.11 may take this into consideration when preparing the Indian SDF and determine the percentage that mining companies could be advised to set aside. "

Based on these recommendations, the National Mineral Policy 2008 explicitly underlined the need for mining within a sustainable development framework. The National Mineral Policy 2008 states, (para numbers in brackets are the para numbers in the Policy):" (2.3) A framework of sustainable development will be designed which takes care of biodiversity issues and to ensure that mining activity takes place along with suitable measures for restoration of the ecological balance..."

In para 7.10 it states" Extraction of minerals closely impacts other natural resources like land, water, air and forest. The areas in which minerals occur often have other resources presenting a choice of utilisation of the resources. Some such areas are ecologically fragile and some are biologically rich. It is necessary to take a comprehensive view to facilitate the choice or order of land use keeping in view the needs of development as well as the needs of protecting the forests, environment and ecology... All mining shall be undertaken within the parameters of a comprehensive Sustainable Development Framework... Mining operations shall not ordinarily be taken up in identified ecologically fragile areas and biologically rich areas.

Para 7.11 states that "Appropriate compensation will form an important aspect of the Sustainable Development Framework mentioned in para 2.3 and 7.10…"

Para 7.12 states that: "Once the process of economical extraction of a mine is complete there is need for scientific mine closure which will not only restore ecology and regenerate biomass but also take into account the socio-economic aspects of such closure..."

And not least, para 3.2 of the Policy states that "The Central Govt in consultation with the State Govts shall formulate the legal measures for giving effect to the NMP 2008..The MMDR Act, MCR and MCDR will be amended in line with the policy…"

In line with the Hoda Committee recommendations, the Ministry of Mines commissioned ERM which prepared a Sustainable Development Framework Report in November 2011.

List of ministers

NoPortraitNameTerm of officePartyPrime Minister
115 August 194726 December 1950Indian National CongressJawaharlal Nehru
217 April 195710 April 1962
3Keshav Dev Malviya25 April 195726 June 1963
(2)26 June 196319 July 1963
4C Subramaniam21 November 19639 June 1964Jawaharlal Nehru
Gulzari Lal Nanda
59 June 196424 January 1966Lal Bahadur Shastri
617 January 196713 March 1969Indira Gandhi
716 March 196727 April 1968
8Prakash Chandra Sethi
(MoS)
27 April 196814 February 1969
914 February 196918 March 1971
102 May 197131 May 1973
11Indira Gandhi6 June 197323 July 1973
1223 July 197311 January 1974
(3)Keshav Dev Malviya11 January 197410 October 1974
13Chandrajit Yadav
(MoS)
10 October 197424 March 1977
1426 March 197715 July 1979Janata PartyMorarji Desai
30 July 197914 January 1980Janata Party (Secular)Charan Singh
1516 January 198015 January 1982Indian National CongressIndira Gandhi
16N. D. Tiwari15 January 198214 February 1983
17N. K. P. Salve
(Independent Charge)
14 February 198331 December 1984Indira Gandhi
Rajiv Gandhi
1831 December 198425 September 1985Rajiv Gandhi
19K. C. Pant25 September 198512 April 1987
(18)12 April 198725 July 1987
2025 July 19872 December 1989
21Dinesh Goswami6 December 198910 November 1989Asom Gana ParishadV. P. Singh
22Ashoke Kumar Sen21 November 199021 June 1991Samajwadi Janata Party (Rashtriya)Chandra Shekhar
23Balram Singh Yadav
(Independent Charge)
21 June 199115 September 1995Indian National CongressP. V. Narasimha Rao
24Giridhar Gamang
(Independent Charge)
15 September 199516 May 1996
25Atal Bihari Vajpayee16 May 19961 June 1996Bharatiya Janata PartyAtal Bihari Vajpayee
26H. D. Deve Gowda1 June 199629 June 1996Janata DalH. D. Deve Gowda
I. K. Gujral
2729 June 199619 March 1998Asom Gana Parishad
(United Front)
2819 March 19984 March 2000Biju Janata DalAtal Bihari Vajpayee
(25)Atal Bihari Vajpayee4 March 20006 March 2000Bharatiya Janata Party
29P R Kumaramangalam6 March 200027 May 2000
3027 May 20007 November 2000Shiromani Akali Dal
31Sunder Lal Patwa7 November 20001 September 2001Bharatiya Janata Party
321 September 200129 April 2002Janata Dal (United)
(25)Atal Bihari Vajpayee29 April 2002 1 July 2002Bharatiya Janata Party
33L. K. Advani1 July 200226 August 2002
34Uma Bharati26 August 200229 January 2003
35Ramesh Bais
(Independent Charge)
29 January 20039 January 2004
369 January 200422 May 2004All India Trinamool Congress
37Shibu Soren23 May 200424 July 2004Jharkhand Mukti MorchaManmohan Singh
38Manmohan Singh24 July 200427 November 2004Indian National Congress
3927 November 200422 May 2009
40Bijoy Krishna Handique28 May 200919 January 2011
41Dinsha Patel
(Independent Charge till 28 October 2012)
19 January 201126 May 2014
42Narendra Singh Tomar26 May 20145 July 2016Bharatiya Janata PartyNarendra Modi
43Piyush Goyal
(Independent Charge)
5 July 20163 September 2017
(42)Narendra Singh Tomar3 September 201730 May 2019
44Pralhad Joshi30 May 201910 June 2024
45G. Kishan Reddy10 June 2024Incumbent

List of ministers of state

Political party! colspan="2"
TermDays
Vishnudeo SaiBharatiya Janata Party26 May 20145 July 2016
Haribhai Parthibhai Chaudhary3 September 201730 May 2019
Raosaheb Danve7 July 202110 June 2024
Satish Chandra Dubey10 June 2024Incumbent

External links

Notes and References

  1. Web site: Budget data . 2019 . www.indiabudget.gov.in . 15 September 2018 . https://web.archive.org/web/20180304170727/http://www.indiabudget.gov.in/ub2018-19/eb/sbe95.pdf . 4 March 2018 . dead .
  2. http://www.jnarddc.gov.in/ Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC), Nagpur
  3. http://www.nirm.in/ National Institute of Rock Mechanics (NIRM), Kolar
  4. http://www.nimh.gov.in National Institute of Miners’ Health (NIMH), Nagpur
  5. http://www.nftdc.res.in/ Non-Ferrous Technology Development Centre
  6. Web site: Mr S Vijay Kumar.
  7. S. Vijay Kumar. Resource Panel. 14 March 2017.
  8. https://www.teriin.org/sites/default/files/2019-09/exploration-mining-india.pdf