In a move that would benefit traditional miners of diamonds in Madhya Pradesh and Chattisgarh, the government has decided to grant permits for one year for mining the precious commodities. Under the present laws, a mining lease has to be for a period of 20 years.

"The conference of state mining ministers today agreed to amend the Mines and Minerals Development and Regulation Act to allow traditional mining of placer diamonds. The move follows a request by Madhya Pradesh government to grant the concession to traditional miners in the state," a senior coal and mines ministry official told Business Standard.

The amendment would also benefit communities of traditional miners of gold and diamonds in parts of Andhra Pradesh and Orissa. The changes would help find a way to exploit alluvial diamonds and traces of gold in river beds in these states, the official said, adding that in the absence of any clear guidelines, illegal mining activities had been taking place.

In an effort to involve local bodies in mining, the coal and mines ministry has proposed overhauling the existing mining laws to make it mandatory to obtain recommendations of gram sabha and panchayats before granting concessions for minor minerals in non scheduled areas.

Consultation with panchayat bodies would be made compulsory while granting such concessions in scheduled areas, mines minister Uma Bharti announced today after inaugurating the meeting.

Bharti said the Centre would try to evolve a consensus with state governments to earmark separate funds for expenditure on community development for which the mining Act would be amended.

The Centre has also proposed amendments to Mineral Conservation and Development Rules 1988 to make a comprehensive mine closure plan mandatory.

The report of a committee to draw up a mine closure plan was presented at the meeting. According to the report, a lease holder would not abandon a mine unless a final mine closure plan duly approved by the regional controller of mines has been implemented.

Every mine would have a closure plan that would include 'progressive' and 'final' plans as defined in the proposed changes to the MCDR.

Even if there was temporary closure of a mine due to a natural calamity, the lease holder would be required to inform the authorities and ensure all precautions are taken to avoid damage or accidents.

Bharti also said that consensus had emerged on the issue of community development and environmental concerns with the Centre deciding to establish monitoring committees at district and state level to oversee the matters.