Mines and Minerals:2015

 1/27/2016  898

Major initiatives and Achievements:-  


MMDR Act, 1957 – Introduction of Auctions:  The MMDR Act, 1957 has been amended by the MMDR Amendment Act, 2015 w.e.f. January, 2015. Through this amendment, the Central Government has replaced the first-come-first-served / discretionary mechanism for grant of mineral resources by a transparent and competitive auction process. This will also enable the states to obtain an enhanced share of the value of mineral resources. Provisions have been made to ensure certainty of tenure and easy transferability of mineral concession.

In order to implement this Policy relevant Rules like Mineral (Evidence of Mineral Contents) Rules, 2015 and Mineral (Auction) Rules, 2015 have been framed and notified by the Government. Model Tender Document (MTD) have also been made available to the State Governments to facilitate them to commence auction. Pursuant to this the State Governments have commenced to issue NITs. Gujarat, Rajasthan and Maharashtra have issued NITs in November, 2015. Other State Governments like Karnataka and Chhattisgarh are likely to follow suit shortly.

District Mineral Foundations (DMF)

Section 9B of the MMDR Act, 1957 prescribes the establishment of District Mineral Foundation (DMF) in any district affected by mining related operations. The objective of the DMF is to work for the interest and benefit of persons, and areas, affected by mining related operations.

The manner in which the DMF shall work for the interest and benefit of persons and areas affected by mining, as also the composition and functions of the DMF, shall be prescribed by the State Governments.

The rate of contribution to the DMF is to be prescribed by the Central Government. The Central Government has, in this regard, framed the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 to prescribe the amount of payment to be made to the DMF.

DMF is to be funded in the following manner:

Ten per cent of the royalty in respect of mining leases or prospecting licence-cum-mining lease granted on or after 12.01.2015

Thirty per cent of the royalty in respect of mining leases granted before 12.01.2015

Directions have also been issued to all States under section 20A of the MMDR Act, 2015 to: (i) specify that the DMFs shall be deemed to have come into existence with effect from 12.1.2015; and (ii) to incorporate the ‘Pradhan Mantri Khanij Kshetra Kalyan Yojana’ into the rules framed by them for the District Mineral Foundations.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY): The Pradhan Mantri Khanij Kshetra Kalyan Yojana will be implemented by the DMFs of the respective districts using the funds accruing to the DMF. The overall objective of PMKKKY scheme will be (a) to implement various developmental and welfare projects/programs in mining affected areas, and these projects/ programs will be complementing the existing ongoing schemes/projects of State and Central Government; (b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and (c) to ensure long-term sustainable livelihoods for the affected people in mining areas.

Accelerating Mineral Exploration Activities in the country

National Mineral Exploration Trust (NMET)

These rules have been notified on 29.06.2015. National Mineral Exploration Trust is aims to promote exploration in the country. Lease holders have been mandated to contribute a sum equivalent to 2% of the royalty to NMET.

In consonance with the MMDR Amendment Act, 2015, emphasis is being laid on intensifying mineral exploration activities in the country to bring up the mineral deposits to a mineable stage. The government has opened up the arena of exploration to other agencies and has, accordingly, notified five Central PSUs to carry out prospecting operations without obtaining prospecting license. The Central Government vide notification dated 16.2.2015 notified five Central Government Public Sector Undertakings viz. Rashtriya Ispat Nigam Limited (RINL), Steel Authority of India Limited (SAIL), National Mineral Development Corporation (NMDC) Limited, Kudremukh Iron Ore Company (KIOCL) Limited, and Manganese Ore (India) Limited (MOIL) under second proviso to section 4 (1) of the MMDR Act, 1957. This enables these PSUs to do prospecting operations without obtaining prospecting licence.

The Geological Survey of India (GSI), primarily engaged in regional exploration, has been re-entrusted the work of taking up detailed mineral exploration at G2 and G1 levels of UNFC from 2015-16 onwards.

Increased revenue to States due to revision in rates of royalty

The Central Government has revised the rates of royalty for major minerals (except for coal, lignite and sand for stowing) on 01.9.2014. State Governments, who receive 100% of the royalty, are benefited through this increase in rates of royalty for major minerals. For some of the States, this revision in rates of royalty may have resulted in an increase of more than 45% in revenue collection through royalty.

Delegation of powers to States through notification of 31 minerals as ‘minor’ minerals

The Central Government has notified 31 minerals as ‘minor’ minerals on 10.2.2015 to delegate entire regulation for these 31 minerals to States. This increased the number of minerals notified as 'minor' minerals from 24 to 55. It will empower States to frame their own rules for grant and regulation of these 31 minerals. States are also enabled to prescribe the method for grant of mineral concessions, rates of royalty, contribution to DMF etc. for these minerals.


Acceleration of the National Geochemical Mapping (NGCM) and National Geophysical Mapping (NGPM) Programmes of GSI

In keeping with the priorities of the Central Government for national development, plans for accelerating the geochemical and geophysical mapping of the country have been prepared. NGCM and NGPM programs have a significant import in the exploration for concealed mineral deposits besides other geo-scientific activities. Accordingly, the core areas of the identified Obvious Geological Potential area of the country are envisaged to be covered by NGCM within the next two years, and by NGPM, within the next three years, starting from 2015-16. It is expected that with this, mineral exploration in the country will get a huge fillip.


Major Highlights of Performance

  • Highest sales turn over (Rs.7771 crore) in FY14-15 since inception
  • Highest profit (Rs.1322 crore) in last seven years - 106% growth over previous year
  • Highest net foreign exchange earning CPSE in the country as per  Public Enterprise Survey 2013-14
  • Dividend pay-out of Rs 451 crore in FY 2014-15 @ 35%
  • Outshining private peers in performance in Aluminium sector

CSR Schemes

  • Rs.19.10 crore has been spent in various CSR projects of NALCO in 2014-15
  • Under Swachh Vidyalaya Abhiyan, 433 toilets (which includes 79 toilets beyond MHRD target) have been constructed in 202 schools of Angul, Koraput and Visakhapatnam at a cost more than Rs. 4 crore.
  • Residential education for 655 poor children from 18 periphery villages of Damanjodi is being sponsored by Nalco Foundation at 3 schools i.e. Kalinga Institute of Social Sciences (KISS, Bhubaneswar), KDF Model School (Jeypore) and Bikash Vidyalaya  (Koraput)
  • 8 Mobile Health Units alongwith doctors are operational & providing health check up & free medicines to villagers of 215 periphery villages in M&R complex, Damanjodi and S&P Complex, Angul
  • Provided 10 lakhs drinking water pouches & 250 nos temporary toilets,  during Nabakalebara Rathayatra in July 2015 in Puri.
  • NALCO KI LADLI Scheme introduced in Aug’15 - 100 BPL girl students from periphery villages of Angul and Damanjodi to be benefitted every year


  • Mine Expansion - Malanjkhand 5 million tonne per annum underground copper mine project is the flagship mine expansion project of HCL. Foundation stone laying ceremony was held at Malanjkhand on 12th April 2015 and work commenced at site has commenced after obtaining all the clearance.
  • Re-opening of closed copper mines of Jharkhand –Obtained environment clearances from MoEF for Kendadih , Rakha & Chapri- Sidheswar mine projects located in Jharkhand.
  • Capacity Enhancement - The company has purchased Jhagadia Copper Limited (JCL) with “State of the Art” technology located at Bharuch, Gujarat from Asset Reconstruction Company (India) Limited. The plant has the capacity to produce 50,000 MT of LME “A” grade copper cathode. The plant has been named as “Gujarat Copper Project” and is the fifth operating unit  of HCL.
  • Green Technology - Initiated pilot scale test for development of hydro-metallurgy technology for extraction of copper metal from sulphide copper concentrate. This will help to reduce the carbon foot prints in the manufacturing of refined copper as no fuel oil will be consumed in the manufacturing process.
  • Extraction of Nickel as by product -  The company has identified technology to recover nickel from the waste generated during the copper refining  process. The plant is under commissioning at Ghatsila smelter & refinery  plant. At present there is no primary producer of nickel metal in the country and this project will facilitate the production of primary nickel metal in the country for the first time.
  • Swachha Vidyalaya Abhiyan - The company has actively participating in the Swachha Vidyalaya Abhiyan and has committed expenditure for construction/repair of 197 toilets covering 160 schools in the states of M.P, Jharkhand & Rajasthan.  


Jawaharlal Nehru Aluminium Research Development and Design Center (JNARDDC)

  • Process developed for low soda (Na2O) hydrate (value addition) in Bayer circuit which can lead to import substitution.
  • Portable analytical kit developed for field analysis for mineral prospecting, exploration and mining activities at remote areas.
  • Provisional patent filed for “Process for selective insitu dissolution of alumina & silica bearing mineral phases in bauxite at room temperature for geo –analytical application” and two other R&D process.
  • Certificate of appreciation by International Bauxite Alumina Aluminium Society (IBAAS) for significant contribution in environment/waste management under task force of Asia Pacific AP-7 partnership program on clean development and climate.
  • IEBR for year 2014-15 was Rs.278 lakhs compared to Rs.253 lakhs of 2013-14.

Commercialization of R&D process:

National Aluminium Co. Ltd, Odisha commercialized the R&D process developed by JNARDDC for “Development of heat treatment process for destruction of toxic cyanide and recovery of valuables from Spent Pot Lining Material (SPL)” with M/s Green Energy Resources, Odisha.

National Institute of Miners' Health (NIMH)

  • Detailed protocol for assessment of vibration hazard has been made available to the Indian mines. This has enabled the industry to take corrective actions wherever necessary and also it can be used as a decision making tool for selection of less hazardous seat or equipment as a whole.
  • Noise mapping facility along with latest  technology has been made available to the mining industry.
  • In house Multiplex ELISA protocol was developed by using panel of six antibodies promising biomarkers is rapid, easy to perform and cost effective technique which is used for early diagnosis of NIHL.


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