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Difficulty: MediumNational Events, Acts, and Governance Initiatives

Consider the following statements regarding the governance and statutory reforms introduced under the Mines and Minerals (Development and Regulation) Amendment Act, 2023:

I. An Exploration Licence (EL) was established to incentivize private sector participation in the reconnaissance and prospecting of critical and deep-seated minerals.
II. Private commercial mining was prohibited by reclassifying strategic elements such as Lithium, Titanium, and Beryllium under the closed atomic minerals schedule.
III. The Central Government was authorized to conduct auctions for specified critical and strategic mineral concessions, with the entire revenue transferred to the respective State Governments.

Which of the statements given above are correct?

  1. Statements I and III onlyAnswer
  2. B
    Statements II and III only
  3. C
    Statement I only
  4. D
    Statements I, II, and III

Answer

Statements I and III only
The correct selection includes Statements I and III. The Mines and Minerals (Development and Regulation) Amendment Act, 2023 established an Exploration Licence (EL) to stimulate private capital and technology in prospecting deep-seated minerals. It also empowered the Central Government to exclusively conduct competitive auctions for 24 critical and strategic minerals, with all financial proceeds accruing directly to the host State Governments. Statement II is false because the legislation omitted Lithium, Titanium, and other critical elements from the list of restricted atomic minerals, specifically enabling private commercial extraction.

Step-by-Step Solution

1
Evaluate Statement I regarding the introduction of the Exploration Licence (EL).
Statement I is correct.
The Mines and Minerals (Development and Regulation) Amendment Act, 2023 introduced a dedicated Exploration Licence (EL) granted through competitive auction to incentivize private sector reconnaissance and prospecting for deep-seated and critical minerals.
2
Evaluate Statement II regarding the classification and mining permissions for critical and atomic minerals.
Statement II is incorrect.
The amendment delisted six minerals—Lithium, Beryllium, Titanium, Niobium, Tantalum, and Zirconium—from the restricted list of atomic minerals (Part B of the First Schedule), thereby allowing private commercial mining concessions rather than prohibiting them.
3
Evaluate Statement III regarding Central Government auction powers and revenue allocation.
Statement III is correct.
The Act authorizes the Central Government to exclusively conduct competitive auctions for mining leases and composite licences for specified critical and strategic minerals, while mandating that all accrued revenue, upfront payments, and royalties flow entirely to the respective State Governments.
4
Synthesize the statement evaluations to identify the valid combination.
Only Statements I and III are correct.
Statements I and III accurately capture the key statutory provisions, while Statement II reverses the liberalization reform of atomic mineral delisting.

Key Concept

Statutory and institutional reforms under the Mines and Minerals (Development and Regulation) Amendment Act, 2023, including Exploration Licences, atomic mineral delisting, and Central auctioning of critical mineral blocks.
Estimated Time:1m 15s
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Topics

National Events, Acts, and Governance Initiatives

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