The Cabinet, headed by Prime Minister Narendra Modi, on Monday approved an ordinance to ram through economic reforms to rev up the mining sector, covering iron ore and other non-coal minerals such as bauxite. The ordinance – the seventh cleared by the new government – is part of the Modi administration’s strategy to fast-track reforms and prevent a hostile Opposition from stalling the decision-making process.

It will pave the way for the allocation of iron ore and other non-coal mines through competitive bidding. It will also enable the creation of District Mineral Funds for the welfare of people affected by a given project.

The need to take the ordinance route was felt as the government was finding it difficult to allocate mines, because the mines ministry could not table a Bill in the Winter Session of Parliament to amend the Mines and Minerals (Development and Regulation) Act, 1957. Industry body Federation of Indian Mineral Industries, however, has been opposing the auction route, saying it would sound the “death knell” for the industry and may lead to cartelisation and waste. Read more

Courtesy: indiatoday.in

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