The Mines and Minerals (Development and Regulation) Amendment Bill 2021 has finally been passed in Lok Sabha. The Bill seeks to amend the Minerals (Development and Regulation) Act 1957 and provide for the removal of distinction between captive and merchant mines. This bill empowers the Central Government to issue directions regarding the composition & utilization of the funds maintained by the District Mineral Foundation(DMF).

The Bill also provides that captive mines other than atomic minerals may sell up to 50 per cent of their annual mineral production in the open market after meeting their own needs.
 
More than 5.5 Million employment will be generated: Mines Minister Pralhad Joshi

Speaking on the Bill, Mines Minister Pralhad Joshi said that it has been brought to reform the mining sector in the country. He said, the country has large reserves of several minerals but only 45 per cent were tapped so far which have resulted in dependence on imports. 

Terming the Bill historic, Mr. Joshi said it will increase the production level of minerals, generate employment, increase revenues and ensure private participation in the exploration and mining activities. He added that more than 55 lakh employment will be generated in the country with the implementation of these reforms. 

With this, Union Minister clarified that all revenue generated from the mining activities will be utilized by the respective state. However, he said, the Bill empowers the central government to specify a time period for completion of the auction process in consultation with the state government. 

Considering the suggestions, he also proposed that Member of Parliament(MP) will be a member of the District Mineral Foundation. The Minister further said, "the amended bill will attract Foreign Direct Investment and technologies in the mining sector."