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"STATEMENT OF OBJECTS AND REASONS:
4. The present legal framework of MMDR
Act, 1957, does not permit the auctioning of
mineral concessions. Auctioning of mineral
concessions would improve transparency in
allocation. Government would also get an
increased share of the value of mineral
resources. Some provisions of the law relating
to renewals of mineral concessions have also
been found to be wanting in enabling quick
decisions. Consequently, there has been
slowdown in the grant of new concessions and
the renewal of existing ones. As a result, the
mining sector started registering a decline in
production affecting the manufacturing sector
which largely depends on the raw material
provided by mining sector. The Government has
therefore felt it necessary to address the
immediate requirements of the mining sector and
also to remedy the basic structural defects that
underline the current impasse.