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Regular-article-logo Friday, 04 July 2025

Mukul push for scientific mining

Proposal for MMDC participation

Rining Lyngdoh Published 04.05.17, 12:00 AM
Meghalaya chief minister Mukul Sangma at the meeting with coal mine owners and dealers in Shillong on Wednesday. Picture by UB Photos

Shillong, May 3: The Mukul Sangma government has proposed scientific mining by the state government-owned Meghalaya Mineral Development Corporation to regulate mining activities in the state.

The move comes after more than three years of stalemate over the ban on coal mining in Meghalaya by the National Green Tribunal (since April 17, 2014) and before the Assembly elections next year.

The government also proposed a revenue-sharing pattern to be worked out in this regard.

This was announced by the chief minister during a consultative meeting on coal mining in Meghalaya, which was attended by a host of coal mine owners and dealers here today.

Mukul, who holds the mining and geology portfolio, however, warned against politicising the issue and appealed to stakeholders (coal mine owners) to take advantage of the proposal.

He alleged that some people had lost their lives as "some people tried to fish in troubled waters" over the ban.

He said the government was taking the decision for the people's good. "No government has acted in the past on regulating mining, maybe due to fear that the issue will be politicised," he added.

Seeking to allay apprehension, he said, "Mine/land owners will benefit from this (regulation of mining) and we are committed to fulfil our responsibilities."

Mukul said since mining has gone beyond small-scale, regulation is needed by conforming to various statutory laws, including the Coal Mines (Nationalisation) Act, 1973.

However, to restore the people's right of ownership over land, the state government will continue to request the Centre to invoke paragraph 12A(b) of the Sixth Schedule through a presidential notification so that provisions of the act are exempted in Meghalaya.

A power presentation titled New/interim approaches to coal mining activity in Meghalaya was given by an official of the mining and geology department.

It stated that in view of the Centre's advice, Meghalaya has proposed the MMDC as the state corporation for carrying out mining activities in the state according to the Mines and Minerals (Development and Regulation) (Amendment) Act, 2015.

"Under Section 11A (3)(a) of the Mines and Minerals (Development & Regulation) Act, 1957, allocation of coal block to the state government company/corporation can be done without going into the auction process. If the land owners of a coal-bearing area give their consent for mining in such areas under certain agreement with the MMDC, the proposal for allotment of such area to the ministry of coal could be initiated in order to make the MMDC eligible to apply for mining lease for operation of coal mine under existing acts and rules," the presentation said.

Stating that individual mine owners have to willingly approach the MMDC for taking up coal mining, the presentation said, "Land/mine owners have to allow their land to be utilised by the MMDC temporarily for the lease period to enable the MMDC obtain mining lease over that area for mining of coal for which revenue sharing pattern can be worked out. The MMDC will act as a facilitator-cum-miner for the land owners/mine owners."

On the roles and responsibilities of the MMDC, the presentation said the corporation would act as a facilitator for obtaining prospecting licences and mining leases, arrange for forest clearance and environment management plan clearance, coordinate with the mine/land owners and mine developer and operator (MDO), obtain the Centre's clearances and approval for mining leases.

It would deal with land owners on agreement, facilitate aggregation of land parcels into single (economical identifiable) coal block for mining and extraction of coal, finalise commercial terms with the aggregated land owners,finalise details on competitive bidding and issue notice inviting bid for selection of MDO.

The state government has proposed two models of operations - sub-leasing and MDO model, also known as contract mining.

The government said in the presentation that Section 3 (3)(c) of the Coal Mines (Nationalisation) Act, allowed the MMDC to sub-lease the mines to any person in any area on prescribed terms and conditions.

All capital investment for mining operations will have to be borne by the sub-lessee. The sub-lessee has to adhere to all the conditions laid down for scientific mining, including afforestation. All investment and operational part of mining will be in the control of the sub-lessee. A bilateral agreement will be entered into between the sub-lessee and the MMDC.

The sub-lessee will bear all costs, including mining, taxation, royalty, sharing revenue with the MMDC and any other expenditure that may arise in due course.

The roles and responsibilities of the mine/land owners under the MDO model will be to approach the MMDC voluntarily and enter into a tripartite agreement with the MMDC and the MDO (in case of MDO model).

The MDO will bring in mining plan and expertise, finance the mine start-up costs and free mine owners from initial start-up investment for operating the mines.

On the benefits of MDO model, the presentation said it will bring in initial investment, the financial burden on miners/land owners will be minimal since the MDO shall undertake all activities starting from detailed geological exploration, preparation of necessary documents and reports, securing requisite clearance and permits, facilitating execution of mining lease in favour of the MMDC, planning and development of the mine, mining of coal, transportation and sale of coal.

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