The Centre is planning to set up a separate platform for investors in the mining sector on the lines of 'Juniors' that operate in advanced countries.
This is among several initiatives aimed at bringing more investments in exploration and mining through the amended Mines and Minerals Development and Regulation (MMDR) Act, which is expected to be tabled in the next session of Parliament.
Disclosing this here, G Srinivas, joint secretary - Ministry of Mines, said currently only 2-3 per cent of the country’s geographical area had been surveyed for minerals. “Thus we are unable to provide credible data to the investors as we do not know what we have," he said.
The Centre has also requested states to invest in exploration of minerals by spending a part of the royalty income on this area.
On the success rate of the ongoing reconnaissance and exploration permits given to several domestic and foreign players under the new mineral policy, he said exploration was a continuous process as these companies were focusing only on a few minerals leaving the scope for other minerals.
The new legislation will also address issues pertaining to the ambiguity in awarding mining lease as currently there is no provision that guarantees lease to a company, which successfully completes exploration.
Also, the present rules do not permit transfer of mining lease if the lease holder intends to exit by bringing in other investors.
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According to the proposed legislation, no clearance would be required from the Centre and states would be authorised to give all the necessary permission. The Centre would formulate the guidelines to be followed by states in issuing clearances.
He said the government was using technology platforms to track the status of clearances with regard to mining applications and would also make it mandatory to all the mining and transport companies to use the GPS system to check illegal mining. Srinivas was speaking at a conference on "Opportunities and challenges in the mining sector' organised by the Confederation of Indian Industry (CII) here on Friday.
Though the mining sector contributes just 1 per cent to the country's gross domestic product as compared with 7-8 per cent in Australia, it has already emerged as a significant player in the world of mineral production.
Today India is the third largest producer of chromium ores, fourth in iron ore, firth in manganese and sixth largest producer of bauxite, zinc and titanium, according to a paper published by YES Bank in association with the CII.