Panaji, The proposed amendments to the Mines and Minerals Act, or MMDR Act, seek to bring greater parity in taxation and production costs across states while maintaining their rights to collect taxes and cess, Union Mines Secretary Keshav Chandra said on Thursday.
Union Mines Minister G Kishan Reddy, Goa Chief Minister Pramod Sawant and Union Minister of State for Mines Satish Chandra Dubey were also present.
Chandra said India needs to strengthen its domestic capacity to explore and process critical minerals and manufacture products using them to avoid dependence on imports and the resulting disadvantages in the global economy. The availability of critical minerals, including rare earth elements, lithium and nickel, along with domestic processing facilities, is crucial for manufacturing permanent magnets and batteries, according to Chandra. “We are taking very important steps towards self-sufficiency,” he said, adding that the Centre has announced substantial subsidies for industries coming forward to establish lithium and nickel processing facilities.
Chandra said the government has also launched a scheme with an outlay of ₹ 1,500 crore to promote recycling of black mass and electronic waste. Around 58 recycling entities have registered under the scheme, pledging a combined processing capacity of 850 KTPA , against the initially envisaged 270 KTPA, he said.
Explaining the rationale behind the proposed MMDR Act amendments, Chandra said significant variations in the cost of mineral production and taxation between neighbouring states could adversely affect industries and lead to a shift in economic activity to states offering more favourable conditions. Citing the example of bauxite, he said the situation could create supply-related challenges and even encourage imports despite domestic availability.
