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Govt approves proposal for mineral reforms to boost production: Report – Financial News Live

Govt approves proposal for mineral reforms to boost production: Report

Govt approves proposal for mineral reforms to boost production: Report

The Cabinet on Wednesday approved a proposal for mega mineral reforms, a move that w

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The Cabinet on Wednesday approved a proposal for mega mineral reforms, a move that will boost mineral production in the country and bring more mineral blocks into auction, according to sources.

These reforms will be implemented through an amendment to the Mines and Mineral (Development and Regulation) Act, 1957 for which a bill will be placed in Parliament in the upcoming session, highly placed sources said.


With the approval of the proposal for reforms, legacy issues related to the mines will be resolved, making a large number of mines available for auctions. It will help strengthen the auction-only regime and boost transparency in the system.

“It will require an amendment in section 10A (2)(b) and 10A (2)(c) of the MMDR Act,” a source said.

The reforms include removing the distinction between captive and non-captive mines and introduction of an index-based mechanism by developing a National Mineral Index (NMI) for various statutory payments, among others.

In order to boost exploration, there will be review of…



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