Cabinet clears new mining policy

Rs 2,116 crore would be required over five years to implement the policy

The Cabinet approved a National Mineral Exploration Policy (NMEP). This will allow auction of 100 prospective mineral blocks.

The government now expects to attract the private sector in exploration, beside strengthening state-run Geological Survey of India (GSI), Mineral Exploration Corporation (MECL) and other notified agencies.

“India has got 800,000 sq km of area, which has obvious geological potential for mining. Of this, only 10 per cent has been explored till date. Government institutions like GSI and MECL have limited capabilities. Therefore, this step has been taken to invite private exploration,” said Mines Minister Narendra Singh Tomar.

The policy says selection of private explorers would be through a transparent process of competitive bidding via e-auction. Mineral blocks for regional exploration will be identified by state governments, for auctioning. Once the explorer gives data after exploration, the state government will auction the mining lease for that block. The mining lease owner will then pay a royalty to the state.
 

Additionally, an amount equivalent to a certain percentage of this royalty would be paid to the private explorer by the mining lease owner. The revenue sharing could be in the form of a lump sum or an annuity to be paid through the period of mining lease, with transferable rights.

If explorer agencies do not discover any auctionable resources, their exploration expenditure will be reimbursed.

To implement the NMEP recommendations, Rs 2,116 crore over five years would be required, over and above the annual plan budget of the GSI.

The mines ministry has already notified the National Mineral Exploration Trust. Mining lease owners have started paying an amount equivalent to two per cent of the royalty paid to state governments to this trust.

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UNEARTHING POSSIBILITIES

• Private explorer selection is proposed to be done through e-auction of the proposed area’s exploration licence
   
• To encourage mineral exploration, the mines ministry has already notified the National Mineral Exploration Trust

OTHER APPROVALS

• Cadre review of Group ‘A’ executive officers of Central Reserve Police Force, with net creation of 90 posts of various ranks from Deputy Commandant to Special DG
   
• MoU between Union Public Service Commission and Bhutan’s Royal Civil Service Commission to share expertise in civil service
   
• MoU between India and Tanzania for bilateral cooperation in water resources management and development
   
• Revised cost estimates for 8 new IITs more than doubled
  

 

Renewal of MoU between the government and Shastri Indo-Canadian Institute