In an effort to encourage value addition and attract investments to the iron and steel sector, the Karnataka government aims to introduce a new mineral policy by December, said a top government official.
“The draft policy is ready and sent to the government. We are waiting for the approval to circulate it to stakeholders from the industry for their views and comments. The policy will be announced by December,” Mines Secretary Tushar Girinath told Business Standard.
However, without giving any details of the new features proposed in the policy, he said the government intends to encourage value addition in the mining sector. Under the new policy, it is proposed to allot fresh mining leases to those who add value like the iron and steel manufacturers, he said on the sidelines of the ‘Mining, Exploration Convention & Trade Show’, organised by the Federation of Indian Mineral Industries (FIMI), here today.
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The existing mining policy was introduced in 2008. The state’s first mineral policy was announced way back in 2000.
“We are aware that the government plans to introduce a new mining policy. However, the government has not consulted the industry nor FIMI on the new policy. Every government wants to tweak the existing policy. But, the new policy should be within the ambit of the Central policy, the MMDR Act,” said Basant Poddar, senior vice-president, FIMI.
Girinath said: “The new policy should have been announced by now. We are waiting for the government approval before finalising the features. It will be out by December.”
Welcoming the government’s intention to encourage value addition in the mineral sector, Poddar said: “Any manufacturing activity is a value addition. In the mineral sector the value addition starts right from the identification of mining reserves, reconnaissance, extracting ore, processing, pelletisation, beneficiation and steel making. The government should take note of all these while deciding the value addition.”
State law minister T B Jayachandra announced in January this year the government was thinking of bringing out a new policy in tune with the directives of the Supreme Court on the industry. The government intends to make the mining industry operate within a legal framework and ensure it generates a huge employment without destroying the environment, he had said.
In 2008, the BJP government announced its mineral policy with 13 major objectives, including features like adoption of modern techniques in mining, transparency in granting mineral licences, emphasis on value-addition and encouraging investment in downstream industries. It was also aimed at bringing an end to “illegal” mining in the state.
Karnataka is the fourth largest producer of iron ore in the country with about 14 per cent of the national reserves.
Its production of iron ore for 2013-14 stood at 17 million tonnes. Presently, 23 mines are operational with a capacity of 8 million tonnes, while the state-owned NMDC Limited produces another 9 million tonnes per annum.
