NMDC Mines to get Renewed on New Amendments in MMDR act by Indian Govt

Ministry of Mines has made a recent development in MMDR Amendment Act to get the issue of NMDC Donimalai case resolved and grant renewal of it. In Aug'19 Govt of Karnataka, decided to cancel the lease renewal order of NMDC's Donimalai mines in Karnataka in an order dated 17 Aug '19 and further put for an auction sale of the expired mine lease block. Following this, NMDC had requested the Government of Karnataka to withdraw its letter stating withdrawal of NMDC Donimalai lease renewal and requested for urgent hearing on the matter by filing revision application. After this, Central Govt. mines tribunal has put a stay until the next date of hearing regarding cancellation of the lease renewal order of NMDC's Donimalai mines and on an auction for sale.

In exercise of the powers conferred by section 13 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules to amend the Mineral (Mining by Government Company) Rules, 2015, namely:- 1. (1) These rules may be called the Mineral (Mining by Government Company) Amendment Rules, 2019. (2) They shall come into force on the date of their publication in the Official Gazette.

In the Mineral (Mining by Government Company) Rules, 2015 in rule 3, in sub-rule (2), for the words "may, for reasons to be recorded", the words "shall, for reasons to be recorded" shall be substituted;

So after amendment the rule reads as - "The State Government, upon an application made to it in this behalf by the Government company or corporation at least twelve months prior to the expiry of the mining lease, shall for reasons to be recorded in writing, extend the period of the mining lease for further periods of upto twenty years at a time"

The State Government, upon an application made to it in this behalf by the Government company or corporation granted a mining lease in accordance with the provisions of sub-sections (2A) and (2B) of section 17A of the Act, at least twelve months prior to the expiry of the mining lease, shall, for reasons to be recorded in writing, extend the period of the mining lease for further periods of up to twenty years at a time.