Revised Penalties Aim To Provide Relief For Small Mining Companies
As part of its initiatives to improve the business environment, the Central government is trying to lessen the penalty for miners who have neglected to turn in their monthly reports to the Indian Bureau of Mines (IBM).
The proposed changes in the Mineral Conservation and Development Rules 2023, will be applicable to mining leases with an annual authorised production capacity of up to 200,000 tonnes and a maximum area of 25 hectares.
With these modifications, penalties will be waived in the event that the Indian Bureau of Mines requires the leaseholders to revise their reports.
The proposed amendments also aim to reduce penalties for violations in prospecting and mining operations, beneficiation studies, and opening and closing of mines for small mining companies, lowering the penalty from Rs 5 lakh to Rs 1 lakh.
Additionally, the penalty for modifying and reviewing mining plans for smaller mines under the proposed Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Amendment) Rules, 2023, will be reduced to Rs 1,000 per day, with a maximum limit of Rs 5 lakh.
Excluding petroleum, coal, and other minor minerals, India recorded mineral production valued at Rs 1.18 lakh crore in the fiscal year 2022–2023, a decrease from Rs 1.33 lakh crore the year before. Notably, lead, zinc, bauxite, and iron ore are the most often mined metallic minerals in the nation.
The recent ratification of modifications by the Parliament to permit the mining of essential minerals like lithium is in line with the government's objectives to increase domestic mineral production, which includes the reforms in question.
In the past, industry small and medium sized mine operators had expressed their concerns to the Ministry of Mines, asking for a rationalisation of fines. Efforts were also undertaken in November 2021 to rationalise the penalty for mining operations defaults.
