MEA PPT - For Zoom 8-12-2021

“Statutory Amendments @ 2021”
MEAI National Webinar,

on 08.12.2021
By
Akshaydeep Mathur
Hony. Secretary General
Federation of Mining Associations of Rajasthan,
Jaipur
MMDR (Amnd.) Act-2015
Salient Features
Introduction of e- Auction Method
Establishment of District Mineral Fund
(DMF)
Establishment of National Mineral
Exploration Fund (NMET)
Stringent penal provisions for illegal
Mining (5 lacs or 5 Years imprisonment)
2
MMDR(Amnd.) Act-2016
Redefined ‘leased area’
3‘(a) ‘‘leased area” means the area specified in the mining lease within which
mining operations can be undertaken and includes the non-mineralised area
required and approved for the activities falling under the definition of mine as
referred to in clause (i);
Transfer of captive mining leases granted other than through
auction
12A (6) ‘Provided that where a mining lease has been granted otherwise than
through auction and where mineral from such mining lease is being used for
captive purpose, such mining lease may be permitted to be transferred subject to
compliance of such terms and conditions and payment of such amount or transfer
charges as may be prescribed.
Explanation.—For the purposes of this proviso, the expression “used for captive
purpose” shall mean the use of the entire quantity of mineral extracted from the
mining lease in a manufacturing unit owned by the lessee.’.
3
Advance Action for Auction
8A (4) "Provided that nothing contained in this section shall prevent the State
Governments from taking an advance action for auction of the mining lease before the
expiry of the lease period.".
Transfer of the statutory clearances to new bidders

"8B. (1) The provisions of this section shall apply to minerals, other than the minerals
specified in Part A and Part B of the First Schedule.
(2) Notwithstanding anything contained in this Act or any other law for the
time being in force, the successful bidder of mining leases expiring under the provisions
of sub-sections (5) and (6) of section 8A and selected through auction as per the
procedure provided under this Act and the rules made thereunder, shall be deemed to
have acquired all valid rights, approvals, clearances, licences and the like vested with the
previous lessee for a period of two years:
4
Extension of lease Period to Govt. Companies
8(3)“(4) Notwithstanding anything contained in this section, in case of
Government companies or corporations, the period of mining leases including
the existing mining leases, shall be such as may be prescribed by the Central
Government:
Provided that the period of mining leases, other than the mining leases granted
through auction, shall be extended on payment of such additional amount as
specified in the Fifth Schedule
Removal of distinction between captive and

merchant mines.
8A(7) “(7A) Any lessee may, where mineral is used for captive purpose, sell
mineral up to fifty per cent. of the total mineral produced in a year after meeting
the requirement of the end use plant linked with the mine in such manner as may
be prescribed by the Central Government and on payment of such additional
amount as specified in the Sixth Schedule: 5
Transfer of statutory clearances
“8B. (1) Notwithstanding anything contained in this Act or any other law for
the time being in force, all valid rights, approvals, clearances, licences and the
like granted to a lessee in respect of a mine (other than those granted under
the provisions of the Atomic Energy Act, 1962 and the rules made
thereunder) shall continue to be valid even after expiry or termination of lease
and such rights, approvals, clearances, licences and the like shall be
transferred to, and vested; subject to the conditions provided under such laws;
in the successful bidder of the mining lease selected through auction under
this Act.
Authority to Central Govt. in respect with DMF

9B(3)
Provided that the Central Government may give directions regarding
composition and utilisation of fund by the District Mineral Foundation.”;
6
NMET as Autonomous Body & Funding of Private
entities
9C(1) for the words “non-profit body”, the words “non-profit autonomous body”
shall be substituted;
9C(4) “(5) The entities specified and notified under sub-section (1) of section 4
shall be eligible for funding under the National Mineral Exploration Trust.”.
Involvement of Private Sector in exploration

4(1)II Proviso ” for the words “such entity that may be notified for this purpose by
the Central Government”, the words “other entities including private entities that
may be notified for this purpose, subject to such conditions as may be specified by
the Central Government” shall be substituted.”
7
Auction for pending cases under S.10A(2)(b)
10A(2)(b) “Provided that for the cases covered under this clause including the
pending cases, the right to obtain a prospecting licence followed by a mining
lease or a mining lease, as the case may be, shall lapse on the date of
commencement of the MMDR(Amend )Act-2021.
Cancellation of non- operating leases

3 (aa) “dispatch” means the removal of minerals or mineral products from
the leased area and includes the consumption of minerals and mineral products
within such leased area;
‘(fa) “production” or any derivative of the word “production” means the
winning or raising of mineral within the leased area for the purpose of
processing or dispatch;’;
8
Transfer of mineral concessions
12 A (6) The transfer of mineral concessions shall be allowed only for
concessions which are granted through auction. (OMITTED)
Transfer of all mineral concessions without any

charges.
12 A(2) “Provided that the transferee of mining lease shall not be required to
pay the amount or transfer charges referred to in sub-section (6), as it stood
prior to the commencement of the Mines and Minerals (Development and
Regulation) Amendment Act, 2021, after such commencement but no refund
shall be made of the charges already paid.”;
9
MMDR(Amnd.)Act-2021
Limitation of penal provisions for illegal mining
21(6) ‘Explanation.—On and from the date of commencement of the Mines and Minerals
(Development and Regulation) Amendment Act, 2021, the expression “raising, transporting
or causing to raise or transport any mineral without any lawful authority” occurring in this
section, shall mean raising, transporting or causing to raise or transport any mineral by a
person without prospecting licence, mining lease or composite licence or in contravention of
the rules made under section 23C.’
Power to Central Govt. for Action in case of failure of State Govt.
10B(4)“Provided that the Central Govt. may require the State Govt. to conduct and complete
the auction or re-auction process, as the case may be, within a period to be fixed in
consultation with the State Government and in cases where such auction or re-auction process
is not completed within such period, the Central Government may conduct auction for grant
of mining lease for such area after the expiry of the period so specified:
10
MCR- 2016 vs MCR-2021
SN MCR- 2016 MCR-2021
First Amendment dt. 24.03.2021
Transfer of ML or PL : Transfer of LOI:

1 Permission only for transfer of Transfer of letter of intent for grant
mining lease or prospecting of mining lease or composite
licence-cum-mining lease granted licence has been allowed where
through auction. original holder got declared
insolvent, bankrupt or firm has
been liquated under Insolvency and
Rule 23 Bankruptcy Code, 2016.
New Rule 23 A
11
MCR- 2016 vs MCR-2021
SN MCR- 2016 MCR-2021
Second Amendment dt. 08.04.2021
Average Sale Price (ASP) of metal 1. Provision has been made for ASP
1 of all metals for which London
Provisions for ASP only for Metal Exchange does not publish the
Aluminium, Copper, Lead, Nickel, Tin, daily settlement price.
& Zinc if settlement price of
London Metal Exchange for these 2.Monthly average price (ASP)
metals available during all the days for that metal published by
of the month . London Metal Exchange shall used
for calculation of ASP.
Rule 44 (i)
New Rule 44 (i) Proviso
12
MCR- 2016 vs MCR-2021
SN MCR- 2016 MCR-2021
Third Amendment dt. 10.06.2021
1. No Provisions . 1.If lessee fails to dispatch the

1 mandated minimum dispatch under
Rule 12 A (1) , such shortfall shall
be assessed on quarterly basis , shall
be liable to pay additional amount to
State Govt. with the amounts
payable under rule 13 of the Mineral
(Auction) Rules, 2015 .
2. State Govt has been

authorised to terminate the lease if
lessee also fails to maintain
minimum dispatch for whole year.
New Rule 12 A (1) (1A)
13
MCR- 2016 vs MCR-2021
SN MCR- 2016 MCR-2021
Fourth Amendment dt. 02.11.2021
1. Permission only for disposal 1.Permission for disposal of

1 overburden/ waste rock/ mineral
of inferior quality of mineral as
minor mineral below the threshold value
Rule :12 (1) (k) Proviso –I New Rule :12 (1) (k) Proviso –II
2. Minimum area for grant of ML 2. Revision of Minimum area for

as 5 ha . grant of ML from 5 ha to 4 ha. For
certain specific deposits, minimum
Rule : 12(5) area 2 ha
New Rule : 12(5) (5A)
14
MCR- 2016 vs MCR-2021
SN MCR- 2016 MCR-2021
3. No provision 3.Permission for sale of 50 % of

2
mineral produced from captive
mines .
New Rule : 12 B
4. Permission for part surrender of 4. Permission for part surrender of

ML area only in case of non-grant ML area in all cases.
of forest clearance . New Rule : 21 A
Rule 21 A
5.Permission for transfer of CL or
5. Permission only for transfer of ML of all types of mines.
CL or ML, granted through
New Rule : 23 (1)
Auction. Rule : 23 (1)
15
MCR- 2016 vs MCR-2021
S MCR-2021
N
MCR- 2016
3 6. No Provision 6. Permission for Mutation of ML
or CL in favour of legal heirs on
death of the lessee or licencee.-
New Rule : 23B.
7. Revision of Interest on delayed

7 . Interest on delayed payments as payments revised from existing
24 % 24 % to 12 %
Rule : 49 New Rule : 49
8. Rules regarding period of ML

8. Incorporation of Rules
regarding period of ML granted to
granted to govt companies and their
payments in the Mineral (Mining by
govt companies and their payments in
the MCR, 2016 New Rules : 72,73
Government Company) Rules, 2015 . 16
Akshaydeep Mathur
Hony. Secretary General

Federation of Mining Associations
of Rajasthan
www.fmar.in 17

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“Statutory Amendments @ 2021”

MEAI National Webinar,

Transfer of the statutory clearances to new bidders

Removal of distinction between captive and

Authority to Central Govt. in respect with DMF

Involvement of Private Sector in exploration

Cancellation of non- operating leases

Transfer of all mineral concessions without any

First Amendment dt. 24.03.2021

Transfer of ML or PL : Transfer of LOI:

Second Amendment dt. 08.04.2021

1. No Provisions . 1.If lessee fails to dispatch the

2. State Govt has been

1. Permission only for disposal 1.Permission for disposal of

2. Minimum area for grant of ML 2. Revision of Minimum area for

3. No provision 3.Permission for sale of 50 % of

4. Permission for part surrender of 4. Permission for part surrender of

7. Revision of Interest on delayed

8. Rules regarding period of ML

Hony. Secretary General

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