INDIA Law and Practice Contributed by: Vishnu Sudarsan, Kartikeya Gajjala and Mehar Vasant, J Sagar Associates
ing regime was slow and inefficient, resulting in undue delays in project implementation. These concerns have somewhat eased in recent years, with digitisation and time-bound service com - mitments hastening processes. 2.2 Impact of Environmentally Protected Areas on Mining In a notable development, in its June 2022 judg - ment in In Re: TN Godavarman Thirumulpad v Union of India and Ors., I.A. No 1000 of 2003 in WP (C) No 202 of 1995, the Supreme Court upheld that mining within national parks and wildlife sanctuaries (and up to a certain dis - tance from the demarcated boundary of such area) shall not be permitted. By an order dated 26 April 2023 in said matter, the Supreme Court has also prohibited mining activities within an area up to one kilometre from the boundary of national parks and wildlife sanctuaries. It is also notable that the NMP envisages that mining operations shall not ordinarily be taken up in identified ecologically fragile and biologi - cally rich areas, with the government identifying such areas as “inviolate areas” or “no-go areas” out of bounds for mining. 2.3 Impact of Community Relations on Mining Projects The MMDR Act stipulates that the state govern - ment shall establish a “District Mineral Founda - tion” in any district affected by mining-related operations, with the aim of working for the inter - est and benefit of persons and areas affected by mining-related activities. A mineral conces - sionaire is required to pay a percentage (which will not exceed one third) of the royalty payable by such lessee to the foundation of the district in which the mining operations are carried on. The operation of the foundation for the inclusive and equitable development of project-affected
persons is guided by the provisions of a scheme entitled “ Pradhan Mantri Khanij Kshetra Kalyan Yojana ”, which has been launched by the central government. The MMDR Act also empowers the central gov - ernment to issue directions to the state gov - ernments on any policy matter in the national interest, including to promote restoration and reclamation activities so as to make optimal use of mined out land for the benefit of local com - munities. Furthermore, where land is acquired by the gov - ernment for the purpose of any mining project, the Right to Fair Compensation and Transpar - ency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is applicable. This law mandates the conduct of a social impact assess - ment, based on which the land that is eventu - ally identified for acquisition should ensure the minimum displacement of people, minimum disturbance to the infrastructure and ecology, and minimum adverse impact on the individuals affected. Notably, the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 provide that a mining lessee shall, in matters of employment, give preference to tribals and to persons who become displaced because of the taking up of mining operations. Lastly, the NMP recognises that, where mining activities are spread over decades, mining com - munities become established and the closure of the mine means not only the loss of jobs but also the disruption of community life. In order to address this, the NMP provides that mines shall be closed in an orderly and systematic manner.
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