The Rajya Sabha’s approval of the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 marks a significant step towards promoting private sector participation in mineral exploration and development in India. The Mines and Minerals Amendment Bill, which was earlier passed by the Lok Sabha on 28th July, is set to become law after receiving the President’s consent.
A key reform proposed in the Bill is the introduction of exploration licences for deep-seated and critical minerals, such as lithium, gold, silver, copper, zinc, and others. These minerals are categorized as deep-seated due to their location deep underground, making their exploration challenging and expensive. The introduction of exploration licences aims to encourage private sector involvement in the exploration of these critical resources, thereby unlocking their potential for industrial and technological growth.
Moreover, the Mines and Minerals Amendment Bill seeks to remove six minerals from the list of 12 atomic minerals. These minerals, which include crucial elements for industries like space, electronics, communications, energy, and electric batteries, are currently restricted to government entities for exploration and mining. By removing them from the atomic minerals list, the Bill opens up opportunities for the private sector to engage in mining and exploration activities related to these essential minerals.
The Bill also grants the Central government the authority to exclusively auction mining leases and composite licences for certain critical minerals. This move enhances the regulatory framework and streamlines the process of granting mining rights, creating a conducive environment for private sector investment and involvement in the sector.
The passage of this Bill is expected to revitalize mineral exploration and development in India by attracting private investment and expertise. It aligns with the country’s vision of becoming self-reliant in meeting its mineral demands and fostering domestic industrial growth. With private sector participation, India can tap into its abundant mineral reserves and reduce its dependence on imports, leading to enhanced economic growth and technological advancements.
Overall, the Mines and Minerals (Development and Regulation) Amendment Bill, 2023, represents a forward-looking approach towards bolstering the mining sector in India. By encouraging private sector participation in mineral exploration and development, the country is poised to unlock its mineral potential, drive economic progress, and achieve sustainable development goals.