BHUBANESWAR | Nov 22, 2016: The State Cabinet today approved the proposal of the Steel and Mines department to replace the Orissa Minor Mineral Concession (OMMC) Rules, 2004 with a new set of rules.

The 2004 OMMC rules lost its relevance after the amendment of the Mines and Mineral (Development and Regulation) Act which came into force on January 12, 2015 and the subsequent inclusion of several major minerals as minor minerals by the Centre, Chief Secretary A P Padhi told reporters after the meeting.

The cabinet meeting chaired by Chief Minister Naveen Patnaik assented to the new Odisha Minor Mineral Concession Rules, 2016 which retained the quarry lease auction provision for minerals under Sairat sources (sand, morrum and stone).

All other minor minerals including decorative stones and major minerals declared as minor minerals has been categorised as 'specified minor minerals', Padhi said.

It has been proposed to give mining lease of specified minor minerals through auction process and special provisions have been made for grant of prospecting license cum mining lease or mining lease to government owned companies.

However, mining lease (ML) will be granted without auction to those who have carried out prospecting under such license or ML has been issued in their favour.

"It has been proposed that the term of ML granted under these rules for specified minor minerals shall be 30 years. The period of PL under PL-cum-ML shall be two years," the Chief Secretary said.

There will be an Environment Management Fund at the state level for reclamation, rehabilitation of mines out areas and conservation of environment. An amount of 5 percent of the royalty payable will be collected from lessees, he added.

The power to frame policy and legislation relating to minor minerals has been delegated to the State while policy and legislation relating to the major minerals are dealt by the Ministry of Mines.

(Source: http://www.newindianexpress.com/)