Govt clears new mineral policy

The government today approved the new National Mineral Policy, which, among other things, proposes the setting up of an independent dispute resolution mechanism "" the Mining Administrative Appellate Tribunal.

The Tribunal will become fully operational in six months, a release issued after a Cabinet meeting said.

The new policy aims to attract foreign direct investment (FDI) to the tune of $250 million annually in the mining sector in the next five years.

An amendment to make the required changes in the existing Mining Act will be introduced in the ongoing session of Parliament.

The Cabinet also approved duty-free market access to India for 8 million pieces of garments annually from Bangladesh without any sourcing conditions.

It also approved removal of sourcing conditions and port restrictions on 8 million pieces of garments from Sri Lanka every calendar year. Of this, 5 million pieces will be allowed duty-free import, while there will be a tariff rate quota on the remaining 3 million pieces.

Meanwhile, the Cabinet Committee on Economic Affairs (CCEA), which also met here today, approved a development support scheme for coffee by the Coffee Board, with an outlay of Rs 310 crore during the Eleventh Five-Year Plan period (2007-12).

It also approved the Tea Quality Upgradation and Product Diversification Scheme by the Tea Board with an outlay of Rs 230 crore.

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OTHER CABINET DECISIONS

Nod to Export Development and Promotion of Spices Scheme by the Spices Board, with an outlay of Rs 192.69 crore for the Eleventh Plan

Allocation of Rs 300 crore for modernisation and strengthening of intellectual property offices

Introduction of the Compensatory Afforestation Fund Bill, 2008, in Parliament for the purpose of establishing a Compensatory Afforestation Fund

Nod to increase in the authorised capital of Food Corporation of India from Rs 2,500 crore to Rs 3,500 crore

Nod to signing of agreement between India and Tajikistan on Avoidance of Double Taxation and the Prevention of Fiscal Evasion for taxes on income

Nod to balance payment of Rs 117.75 crore for RITES Ltd and Rs 16.06 crore for Ircon for projects executed in Iraq in the 80's. The payment would be made at an approved exchange rate of Rs 47.86 to the US dollar