No plan for IREL, HCL, NALCO merger with ‘National Critical Minerals Corporation’: Centre to LS

The Central government has not chalked a plan for the merger of Indian Rare Earth Limited (IREL), Hindustan Copper Limited (HCL) and National Aluminum Company Limited (NALCO) into a ‘National Critical Minerals Corporation’ to compete globally as China’s dominance comes from state-backed monopolies like China Minmetals, the minister of coal and mines, G. Kishan Reddy informed the Lok Sabha.

The union minister replying to a query by Berhampur MP Pradeep Kumar Panigrahi said the Central Government through a notification 22 November 2010 appointed a Commission of Inquiry under the Chairmanship of Justice M. B. Shah for the purpose of making inquiry of illegal mining of iron ore and manganese ore in contravention of the provisions of the Mines and Minerals (Development and Regulation) Act, 1957, the Forest (Conservation) Act, 1980, the Environment (Protection) Act, 1986 or other rules or licenses or guidelines issued there under referred to as illegal mining.

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The Justice M.B. Shah Commission submitted the report to the Ministry of Mines, which was subsequently laid in the Parliament, the minister said.

The Section 23C of the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 empowers the State Government to frame rules to prevent illegal mining, transportation and storage of minerals and for purposes connected therewith.

Therefore, the control of illegal mining, transportation and storage of minerals and purposes connected therewith is primarily the responsibility of the State Government, added the minister.

The Central Government supports and augments these efforts through policy initiatives from time to time. Some of the steps taken by the Central Government for the prevention and control of the frauds like fake transportation permits, under invoiced exports etc. are as under the MMDR Act, 1957 was amended through the MMDR (Amendment) Act, 2015, wherein Section 30B and 30C read with Section 21 and 23C, inter-alia, provide stringent punitive provisions for illegal mining, transportation and storage, added the minister.

Altogether, 21 State Governments including Odisha have framed rules under section 23C of MMDR Act,1957 to curb illegal mining, transportation and storage of minerals.

Further 22 State Governments including Odisha have set up Task Forces, specially constituted to control illegal mining and review the action taken by member departments for checking the illegal mining, transportation and storage activities, added the minister.

The Ministry of Mines launched the Mining Surveillance System (MSS) in October 2016 through IBM. The MSS system detects likely incidences of illegal mining using space technology. The Ministry of Mines also issued guidelines on 3 October 2023 to major mineral rich States for prevention of misclassification of grades of iron ore and other minerals by using technology, added the minister.

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