The first meeting of the recently notified National Mineral Exploration Trust (NMET) will take place next month to discuss the utilisation of its funds.
Last week, the government notified the NMET, which will look into the ways to encourage exploration of mines and minerals in the country.
"We have constituted the NMET. Under the trust, there will be a governing council, headed by the mines minister and an executive committee, headed by the mines secretary.
"In may be three weeks time, a meeting of the executive committee and then a meeting of governing council will be called and we will take decisions about the utilisation of funds. These funds will be levied with effect from January 12, 2015," Mines Secretary Balvinder Kumar told PTI.
The Ministry will ask states to levy two per cent of royalty for the NMET and transfer the funds to the trust, he added.
At present, mining exploration work is undertaken mainly by GSI, Mineral Exploration Corporation (MECL), Atomic Mineral Directorate of Exploration, Department of Atomic Energy and State Directorates of Mining.
The government has decided to include more entities in the exploration work such as NMDC, SAIL and MOIL, a move that will help India tap potential in this area more efficiently.
The objective of NMET is to use the funds accrued to the Trust for the purposes of regional and detailed exploration in such manner prescribed by the Central Government.
According to sources, NMET can have funds to the tune of Rs 400-500 crore.
Kumar said the Mines Ministry is also working on framing policy for mineral exploration.
"We will be announcing the National Mineral Exploration Policy very soon. For this, we have constituted a drafting committee headed by Additional Mines Secretary R Sridharan. We have given two months time to consult states and stakeholders and submit draft exploration policy," he added.
Government aims to create a policy that will encourage the participation of private sector in exploration. It seeks to increase contribution of mining to GDP to grow from 2 per cent to 6 per cent.
