The Ministry of Coal has amended Mineral Concession Rules, 1960 (MCR) with a view to decriminalise its provisions. MCR regulates the application and grant of mineral concessions such as reconnaissance permit, prospecting licence, and mining lease. These concessions are prerequisites for development and operationalization of mines, entailing several compliances on the part of businesses.
Government has been taking initiatives to reduce compliances for business and citizens. To further promote and boost the ‘Ease of doing business’ policy of the government, the amendment in MCR decriminalised 68 provisions whereas the penalty has been reduced for 10 provisions of MCR.
Express provision has been introduced for adjustment of additional or shortfall royalty. Further, the rate of penal interest on delayed payment of rent, royalty, fee, or other sums due to the Government has been reduced from 24% to 12%. It is expected that these provisions shall afford the much-required economic relaxations in the coal mining sector.
