The Federation of Indian Mineral Industries (FIMI) today demanded industry status for the mining sector along with reforms at the state level for attracting investment in the sector. It said that lack of reforms by various states was hindering growth of the sector.
“Despite the tremendous push given by the government in opening up the mining sector for private investment, things are not taking shape at the ground level,” VS Rao, president of FIMI, told reporters on the eve of the 35th annual general meeting of the organisation here.
He said that state governments were hindering progress in the mining sector by adopting procedures which were detrimental to growth.
“There is no change in the attitude of state governments. No rationalisation of procedures or transparency is evident. Delays take place as before and there are no serious efforts to reduce them,” he said.
Rao said that different procedures adopted by state governments in awarding licences and permits were sending negative signals to potential foreign investors.
FIMI also suggested dereservation of mineral bearing lands which state governments have reserved for a certain span of time saying that no development of such lands had so far been undertaken.
It sought the removal of captive restrictions on mining projects to make mining more attractive. “Insisting a company to go for a captive industry will not allow the development of world class mining ventures in the country,” he said.
FIMI sought reforms in environmental regulations to cut the delays in the processing time for clearances.
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