CMA decries the move to delete Section 10A(2)(b) of MMDR Act

The Cement Manufacturers Association (CMA) has written to the Department for Promotion of Industry and Internal Trade raising concerns over the proposed deletion of section 10A(2)(b) of the MMDR Amendment Act, 2015. The section 10A(2)(b) was introduced to safeguard efforts, investments and risks undertaken by holders of reconnaissance permit (RP) and prospecting licence (PL) to have a seamless conversion to the next stage after completion of exploration. Nearly 600 such applications for captive leases were pending with state and central government authorities. Aparna Dutt Sharma, CMA Secretary-General, stressed the need for strengthening the mines and mineral sector to move towards an Atmanirbhar Bharat. The steps, which take away the vested rights, will not be in sync with the PM's vision and prompt redressal of this would fast-track the growth of the mining sector and boost all the eight core industries dependent on the mining industry. CMA informed that the cancellation of section 10A(2)(b) would increase hardships and revenue losses for the industry, which was struggling due to the economic slowdown and now the Covid-19 pandemic. The industry would like development policies to be predictable and consistent to usher in fresh investments and to protect the efforts that go into establishing an industrial setup.