Four-Hectare Landholders to Now Get Mining Lease for Major Minerals

Subject: Mining Policy Reform and Employment Generation

    In a landmark decision, the Central Government has approved a new arrangement where farmers owning at least four hectares of land can be granted mining leases for major minerals.    A proposal regarding this policy has been presented in Parliament, aiming to boost local mining activity and generate employment for rural youth. This development is expected to significantly contribute to regional industrial development and enhance state revenue.

Conversion of Minor to Major Minerals:

• As per the new reform, minor limestone quarries have been approved for conversion to major mineral category, expanding the scope of economic activities.

Expected Benefits:

• Relief to struggling mining lease holders.
• Boost to regional mining industries.
• Employment opportunities for local youth.
• Increased royalty and revenue for the state government.

In-depth clarification to RAS aspirants (Quick points):

 Policy Background: Previously, major mining of mineral was only accessible to lease by industrial bodies or larger landowners. This reform is a democratization of access to mining empowering medium landholders.

 Major and Minor Minerals:

 Major Minerals: These include limestone (cement grade), bauxite, iron ore, copper and so on.

 Minor Minerals: consist of ordinary sand, limestone (non- cement), marble, granite, construction-local. 

What is the Importance of This? 

• Rajasthan has a lot of mineral resources and this decision unlocks the big potential of the small landholders. Supports regulation of controlled mining in the unutilized land in the semi-arid areas. Inspires professionalization of local mining, and limits on illegal mining. 
• Employment Impact: Mining and related work involves workforce to carry out excavation, transport, processing. creates both direct and indirect employment in the rural belts.
•  Revenue Implication: The legal mining as a result of issuance of major mining leases to small landholders will enhance royalty income by the state. Assists in the formal registration of operations that were hitherto not regulated.
•  Challenges Ahead: Sustainable mining needs to be guaranteed as well, with environmental clearances. Safety education of the newcomers (farmers) will play an important role. Liaison with State Mines & Geology Department and Ministry of Mines (GoI) was required.

MCQ

Which of the following reforms allows farmers with 4 hectares of land to participate in the mining sector?

1. PM-KUSUM Scheme
2. National Mineral Policy 2023
3. New Mining Lease Policy for Major Minerals
4. Sustainable Sand Mining Guidelines
   Answer: 3
   Explanation: Under the new mining lease policy, farmers owning 4 hectares of land are eligible to get mining leases for major minerals.