Cabinet approves Amendment of the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 for specifying rate of royalty in respect of certain minerals

What is the News?

The Union Cabinet has approved the proposal of the Ministry of Mines for amendment of the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957.

What is the purpose of the amendment?

The amendment specifies the rate of royalty in respect of certain minerals like Glauconite, Potash, Emerald, Platinum Group of Metals (PGM), Andalusite, Sillimanite and Molybdenum.

What was the need for this amendment?

Geological Survey of India and Mineral Exploration Corporation Ltd. has been carrying out exploration of minerals such as Glauconite/ Potash, Emerald, Platinum Group of Metals (PGM), Andalusite and Molybdenum which are not mined in the country. The country is totally dependent on imports of these minerals.

However, now, as a major step towards mineral self-sufficiency, many State Governments have identified such mineral blocks for auction. However, the rate of royalty for these minerals was not separately provided.

That’s why this amendment was brought to specify the rate of royalty in respect of these minerals.

What is the use of these minerals?

Minerals like Glauconite and Potash are used as fertilizer in agriculture. 

Platinum Group of Metals(PGM) are high-value metals used in various industries and new innovative applications. 

Minerals like Andalusite, molybdenum are vital minerals used in industrial applications.

Hence, encouraging indigenous mining of these minerals would lead to a reduction in imports in potash fertilizers and other minerals, thereby reducing the country’s foreign dependency.

Source: This post is based on the articleCabinet approves Amendment of the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 for specifying rate of royalty in respect of certain mineralspublished in PIB on 10th Mar 2022.

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