InvestorQ : What could be the implications of the recent Mining Bill that was passed in the Parliament during the week?
sara Kunju made post

What could be the implications of the recent Mining Bill that was passed in the Parliament during the week?

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Mary Joseph answered.
2 months ago
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On Monday the 22 March, the Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill or the MMDRA Bill in short. The bill envisages substantial opening up of mining licenses, easing approvals for private sector mining and in the process it intends to unlock a lot of value by making cheap minerals available locally.

The bill also envisages to catalyse the creation of a plethora of jobs and employment opportunities, both direct and indirect. In addition, it will also allow private sector into mining activities, so that the industry can benefit from their enhanced technology offerings as well as private sector best practices in the mining sector.

However, to allay the concerns of many of the Indian states about devolution of powers, the Union Minister for Coal and Mines has assured that the bill will not in any way curb the powers of the states. In India, mining is still a state subject and is controversial because it would also mean loss of revenues for the state. Hence the assurance was called for. The bill was passed by voice vote in the Rajya Sabha, even as the opposition demanded scrutiny.

The bill will allow private participation in the mining sector in India and has been in the works for a very long time. The Bill has already been passed in the Lok Sabha on 19-March. While the ruling NDA government has a simple majority in the Lok Sabha, it is still short of numbers of Rajya Sabha and counts on the support of friendly parties to see some of the critical bills through.

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