Mining without licence is likely to attract a penalty of up to Rs 25,000 per hectare or two years imprisonment or both, and failure to implement mines closure plans is likely to cost Rs 1,000 per day per hectare, according to recommendation of a GoM.

The Group of Ministers (GOM) on mines in its recent meeting also suggested a penalty of two years prison for mining without licences.

The GoM, headed by Finance Minister Pranab Mukherjee, was formed to iron out inter-ministerial differences over new mines legislation, Mines and Mineral Development and Regulation (MMDR) Bill.

"It was also agreed that while most of the provisions were necessary, the penalty of imprisonment of three years for exploration without licence may now be reduced to two years and the fine for exploration without licence shall be up to Rs 25,000 per hectare, subject to maximum in case of PL (prospecting licence) of Rs 15 lakh," the GoM recommended.

A Prospecting Licence (PL) is granted for undertaking operations for purpose of exploring, locating or proving mineral deposit.

On mine closure plan, the GoM in its final meeting, according to an official document, recommended, "For non-implementation of final mine closure plan the penalty will be Rs 1,000 per day per hectare".

The Mines Ministry in the draft bill had recommended a higher punishment, "which may extend to Rs 10,000 per day for the period of such default".

A mine closure plan encompasses rehabilitation process on the area of mining, which includes measures like plantation to minimise the impact of damage on environment due to mining.

The GoM was of the view that "the Bill adequately provided for creation of mechanisms for investigation, prosecution and trial of offences". ( BS )