Cabinet to take up new mining policy soon

The Union Cabinet will discuss the new mining policy that promises automatic issuance of mining leases after the completion of prospecting studies, among other things, to facilitate faster investments into the sector in a few days, minister of state for mines T Subbarami Reddy said.

Addressing the international conference on aluminium - Incal 2007-  here today, he said the new policy would enable Rs 1 lakh crore investments in the next four years. "The policy would be introduced in Parliament after the Cabinet approves it and I am hopeful that it would be cleared in 2-3 months," he said.

The policy framework is aimed at removing inordinate delays in giving clearances for mining of various minerals. The new policy proposes a fixed time frame for issuing permits or licences to each stage involving the mining process.

While expressing concern over the slow pace of exploitation of natural resources in the country, the minister, however, said the companies will have to keep the welfare of the local people in mind while mining various minerals, especially bauxite ore, which is mostly found in forest and tribal areas. "Though India's bauxite reserves are the fifth largest in the world, we are far behind in terms of aluminium production," Reddy said.

The production is expected to touch 4 million tonnes from the present 1.5 million tonne in the next four years.

Meanwhile, the Aluminium Association of India (AAI) will soon submit a draft aluminium policy on the aluminium industry, according to KSS Murthy, general secretary of AAI.