Uttar Pradesh is among the few states which still have not amended mineral concession rules for minor minerals such as gypsum, sand and mica.
"Union Mines Ministry has given a warning to UP to amend its minor minerals concession rules and allow grant of mining licence through transparent and non-discriminatory license. Failing this, the Ministry will have to issue a directive to the state," a senior government official said.
States have freedom to set up their own rules regarding minor minerals. However, issuing a directive to the state can act as a pressure point considering Supreme Court's judgement on mineral auction, he added.
Earlier this month, Mines Secretary Balvinder Kumar had written to UP's Chief Secretary Deepak Singhal asking him to amend the mineral concession rules for minor minerals at the earliest.
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When contacted, Kumar said: "As per Supreme Court order all states must have a transparent policy for minor minerals like that of the major minerals."
Earlier this year, the state amended its Minor Mineral (Concession) Rules, 1963, but it still falls short of the "transparent and non-discriminatory" process of auction for grant of such minerals, another official said.
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