Centre moves to tighten control over mineral-rich lands; Kerala's black sand sector faces threat
Proposed amendments to the Mines and Minerals Act could grant the Centre greater control over rare mineral lands, potentially impacting Kerala's black sand sector and increasing private involvement in mining.
Proposed amendments to the Mines and Minerals Act could grant the Centre greater control over rare mineral lands, potentially impacting Kerala's black sand sector and increasing private involvement in mining.
Proposed amendments to the Mines and Minerals Act could grant the Centre greater control over rare mineral lands, potentially impacting Kerala's black sand sector and increasing private involvement in mining.
Kollam: The Centre is set to gain more control over land containing rare minerals, including black sand, through proposed amendments to the Mines and Minerals (Development and Regulation) Act, 1957.
The amendment would give the Centre special regulatory powers over mineral-rich areas. The Union government already exercises certain regulatory powers over mining activities.
If the amendment Bill is passed by Parliament, it could pose a threat to Kerala’s dominance in the black sand sector. There are also concerns that the proposed changes could pave the way for greater private participation in mineral sand mining.
The Bill seeks to limit the exclusive powers currently exercised by states to grant mining leases and impose taxes, cess and royalties. Under the proposed provisions, states would have to comply with standards prescribed by the Centre while levying taxes, royalties and cess on mineral extraction.
The move comes after the Centre amended the Offshore Areas Mineral (Development and Regulation) Act to facilitate mineral exploration and mining in offshore areas. The Union government has also formulated plans for deep-sea sand mining, triggering protests in Kerala.
The proposed move to extend greater central control to mineral-rich land onshore has raised fresh concerns in the state.
Kerala’s black sand industry is largely concentrated in the coastal belt of Kollam, where state-owned Kerala Minerals and Metals Ltd (KMML) and Indian Rare Earths Limited (IREL) have major operations.
The proposed changes could therefore have significant implications for the two companies and for Kerala’s long-standing control over its mineral sand resources.
Centre pitches sustainable mining
The Centre has argued that sustainable mining of minerals is essential for the development of infrastructure and the construction sector, ensuring energy security and driving the country’s economic growth.
The government had earlier amended the MMDR Act to allow private and foreign companies to enter the sector. Previously, the right to mine minerals, including black sand, was restricted to public-sector entities.