 "Privatise PSUs in sector, urge mining firms")
To increase the availability of key raw materials to domestic user industries and raise investment in the sector, including foreign direct investment, the mining sector has urged the government to privatise public sector undertakings in the sector. It has also sought from time to time, mineral-bearing areas reserved by state governments be de-reserved for the public sector, under various sections of the Mines and Minerals Development and Regulation (MMDR) Act, 1957.
In a presentation to mines, steel and labour & employment minister Narendra Singh Tomar earlier this week, the Federation of Indian Mineral Industries (Fimi) suggested the National Democratic Alliance government allow the private sector to generate employment and increase revenue for state and central governments.
“Privatisation will help in exploration of deposits of minerals/metals, for which we depend on imports. Bringing foreign direct investment into the country will also involve induction of new technologies. Privatisation will also help up-skill manpower in remote and backward areas, leading to their socio-economic development,” said R K Sharma, secretary-general, Fimi.
Iron ore miners, grappling with high taxation norms such as 30 per cent for export of fines and five per cent for pellets, have urged the minister to reduce the taxes so that the sector can further invest in exploration, Fimi has said. It has also sought an amendment to the MMDR Act, 1957, in line with its suggestions and the recommendations of the Hoda committee, adding these be incorporated in National Mineral Policy, 2008.
The Fimi presentation also highlighted delay by state governments in granting reconnaissance permits. Significant time (8-12 months) was lost in securing aerial survey permissions from various government agencies, Fimi said.
According to the mines ministry, as of May 5, 2014, a large number of applications were pending with various state governments for reconnaissance permits (643 applications), prospecting licences (19,891), mining leases (42,861), letters of intent (265) and renewals (2,515). “If early decisions are taken on these, it will generate employment for at least a million people, direct and indirect, in remote and tribal areas,” Sharma said.
Exploration and mining activities have remained confined to surface deposits such as coal, iron ore, limestone and bauxite, though India’s geological prospects were as bright as resource-rich countries such as Australia, Canada, Brazil, South Africa and China. As a result, the country was dependent on imports of a large number of minerals, Sharma said.
“Raw material security is essential to take care of the rapidly changing economic environment in Southeast Asia, as well as the hostile geopolitical situation around us. Securing access to sustainable supply of minerals is increasingly becoming an important factor for strategic planning. This underlines the need to develop a policy framework that leads to more exploration, exploitation of national resources, and making these available to the manufacturing sector,” he added.
In a presentation to mines, steel and labour & employment minister Narendra Singh Tomar earlier this week, the Federation of Indian Mineral Industries (Fimi) suggested the National Democratic Alliance government allow the private sector to generate employment and increase revenue for state and central governments.
“Privatisation will help in exploration of deposits of minerals/metals, for which we depend on imports. Bringing foreign direct investment into the country will also involve induction of new technologies. Privatisation will also help up-skill manpower in remote and backward areas, leading to their socio-economic development,” said R K Sharma, secretary-general, Fimi.
Also Read
Privatisation would enable the sector to invest in exploration and exploitation of resources, Fimi said.
Iron ore miners, grappling with high taxation norms such as 30 per cent for export of fines and five per cent for pellets, have urged the minister to reduce the taxes so that the sector can further invest in exploration, Fimi has said. It has also sought an amendment to the MMDR Act, 1957, in line with its suggestions and the recommendations of the Hoda committee, adding these be incorporated in National Mineral Policy, 2008.
The Fimi presentation also highlighted delay by state governments in granting reconnaissance permits. Significant time (8-12 months) was lost in securing aerial survey permissions from various government agencies, Fimi said.
According to the mines ministry, as of May 5, 2014, a large number of applications were pending with various state governments for reconnaissance permits (643 applications), prospecting licences (19,891), mining leases (42,861), letters of intent (265) and renewals (2,515). “If early decisions are taken on these, it will generate employment for at least a million people, direct and indirect, in remote and tribal areas,” Sharma said.
Exploration and mining activities have remained confined to surface deposits such as coal, iron ore, limestone and bauxite, though India’s geological prospects were as bright as resource-rich countries such as Australia, Canada, Brazil, South Africa and China. As a result, the country was dependent on imports of a large number of minerals, Sharma said.
“Raw material security is essential to take care of the rapidly changing economic environment in Southeast Asia, as well as the hostile geopolitical situation around us. Securing access to sustainable supply of minerals is increasingly becoming an important factor for strategic planning. This underlines the need to develop a policy framework that leads to more exploration, exploitation of national resources, and making these available to the manufacturing sector,” he added.