Independent regulator likely against illegal mining

The Union Government is mulling over setting up an independent sectoral regulator, possibly through an ordinance under the existing Mines Act to curb illegal mining.

The government is examining how to put a National Mining Regulatory Authority in place and this could be through an ordinance in the existing Mines and Mineral Development and Regulation Act (MMDR Act), 1957. The Authority is likely to be vested with powers to investigate and prosecute those involved in illegal mining.

Besides, the government is set to make the registration of miners and traders mandatory under the Mineral Conservation Development Rules.

Madhya Pradesh unveils Mining Policy 2010

The Madhya Pradesh Government on 8 September 2010 unveiled Mining Policy 2010.

The major thrust of the policy is likely to be on development of mineral wealth in the state in scientific manner by using latest survey technology and constituting a Mineral Development Fund. The state government is likely to bring in private partners for exploration of minerals.

Under the policy, the state government is likely to encourage mining of limestone, manganese, and bauxite and value-addition through modern industries. However, only those mining industries will be encouraged and will be granted licences that will offer 50 per cent jobs to locals.

The transportation of mineral to processing plants is expected to be encouraged through conveyor belts and ropeways. Use of satellite data, e-permit, and setting up of check-post are also proposed in the new policy to rearrange mining in the state. Further, the state government has also decided to discourage mining in tribal and reserve forest areas as well as surface mining reconnaissance permits. It is likely to charge more royalty against mining.

More stringent norms likely for grid infusion by private firms

The Central Electricity Authority (CEA) has sought stricter norms for grid infusion by private power producers.

The CEA opines that the private power producers should be subject to stricter norms if they want to supply power to the regional/national grids under the dynamic load management mechanism.

Need for the stricter norms comes from the possibility of private producers preferring to supply under emergency procurement regime for extended periods rather than entering into an alternative supply arrangement on lower tariff. This is possible by simple means of not declaring their plant as ready for commercial operation.

Under the grid stabilisation scheme or the 'UI mechanism', a power unit can make big profits by injecting electricity into the grid when demand is high and the grid frequency is low.

While the scheduled energy exchanges with the grid are priced under the agreements between the buyer and seller utilities or through the market discovery price on the exchanges, deviations (positive or negative) from the scheduled exchanges which are termed as 'unscheduled interchange' (UI) are priced at a dynamic price known as the 'UI Rate'.