GoM for Rs 25,000 penalty per hectare for mining without licence | delhi | Hindustan Times
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GoM for Rs 25,000 penalty per hectare for mining without licence

A ministerial panel has recommended a penalty of up to Rs 25,000 per hectare for the offenders undertaking mineral exploration without licence and Rs 1,000 per day per hectare for those failing to implement mines closure plan.

delhi Updated: Jul 18, 2011 22:46 IST

A ministerial panel has recommended a penalty of up to Rs 25,000 per hectare for the offenders undertaking mineral exploration without licence and Rs 1,000 per day per hectare for those failing to implement mines closure plan.

The Group of Ministers (GoM ) in its recent meeting to iron out inter-ministerial differences over new mines legislation -- Mines and Mineral Development and Regulation (MMDR) Bill -- also suggested reducing imprisonment in cases of mining without license to two years from three years.

"It was also agreed ... the penalty of imprisonment of three years for exploration without licence may now be reduced to two years and fine for exploration without licence shall be up to Rs 25,000 per hectare, subject to maximum in case of PL (prospecting license) of Rs 15 lakh," the GoM headed by finance minister Pranab Mukherjee recommended.

The Mines Ministry had earlier proposed imprisonment for a term, which may extend upto three years, or with fine which may extend to twenty-five thousand rupee per hectare in its draft bill.

A Prospecting License (PL) is granted for undertaking operations for purpose of exploring, locating or proving mineral deposit.

On mine closure plan, the GoM in its final meeting, as per an official document, recommended, "For non-implementation of final mine closure plan the penalty will be Rs 1,000 per day per hectare," an official document said.

The mines ministry in the draft bill had recommended a higher punishment -- "which may extend to Rs 10,000 per day for the period of such default."

A mine closure plan encompasses rehabilitation process on the area of mining, which includes measures like plantation to minimise the impact of damage on environment due to mining.

The GoM was of the recommendation that "the Bill adequately provided for creation of mechanisms for investigation, prosecution and trial of offences."