Contention of the news item suggesting that an area will be notified for competitive bidding only if no one applies for it under “first-in-time” provision is totally incorrect: B.K. Handique
A section of the media today reported that the new draft MMDR Act provides that a value adder or an applicant with better commitment, rehabilitation schemes or downstream investments could be rejected in favour of a First-in-time.
The news report is factually incorrect. The Minister for Mines, Shri B.K. Handique clarifies that the new draft Mines and Minerals (Development and Regulation) Act (MMDR Act) categorizes all the area in the country into two types, one where mineralization is known to the Government and in such areas, the State Government may notify and call for “best bids” for grant of Prospecting licence or mining lease through competitive bidding process (Section 13 of the new Act). The second type of area is such area where mineralization is not known to State Government or to anybody generally. In such areas the new draft Act provides that in case somebody applies for exploration, he should be given first-in-time priority for his ability to take risk in investment, and such area should not be given to a later applicant till the first applicant is rejected (Section 22(3) and Section 23(3) of new Act).
The Minister also stated that the First-in-time works only for areas where there is no evidence of availability of minerals, and needs to be explored. After exploration, the prospector gets an assured right to mine the area, in return for the effort he puts in. First-in-time does not apply for applications for grant of mining lease, which the State Government may only notify for grant through competitive bid.
Therefore the Minister stated that the contention of the news item suggesting that an area will be notified for competitive bidding only if no one applies for it under “First-in-time” provision is totally incorrect. On the contrary if in response to notification, no offers are received, an area may be left open for ‘First-in-time” at any subsequent stage.
A section of the media today reported that the new draft MMDR Act provides that a value adder or an applicant with better commitment, rehabilitation schemes or downstream investments could be rejected in favour of a First-in-time.
The news report is factually incorrect. The Minister for Mines, Shri B.K. Handique clarifies that the new draft Mines and Minerals (Development and Regulation) Act (MMDR Act) categorizes all the area in the country into two types, one where mineralization is known to the Government and in such areas, the State Government may notify and call for “best bids” for grant of Prospecting licence or mining lease through competitive bidding process (Section 13 of the new Act). The second type of area is such area where mineralization is not known to State Government or to anybody generally. In such areas the new draft Act provides that in case somebody applies for exploration, he should be given first-in-time priority for his ability to take risk in investment, and such area should not be given to a later applicant till the first applicant is rejected (Section 22(3) and Section 23(3) of new Act).
The Minister also stated that the First-in-time works only for areas where there is no evidence of availability of minerals, and needs to be explored. After exploration, the prospector gets an assured right to mine the area, in return for the effort he puts in. First-in-time does not apply for applications for grant of mining lease, which the State Government may only notify for grant through competitive bid.
Therefore the Minister stated that the contention of the news item suggesting that an area will be notified for competitive bidding only if no one applies for it under “First-in-time” provision is totally incorrect. On the contrary if in response to notification, no offers are received, an area may be left open for ‘First-in-time” at any subsequent stage.
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