Monopoly norms for mining permits to be reviewed
Committee with state and industry representatives to be set up
| This follows requests from both companies engaged in mining and state governments seeking a review of current norms. |
| Officials told Business Standard that the 16-member committee, headed by the joint secretary in the ministry of mines, would review Rule 22 D of the Mineral Concession Rules, 1960. It will be required to submit a report within two months. |
| The government had specified certain provisions to prevent large monopoly operations which do not apply to government undertakings. |
| According to the provisions, a single person cannot acquire a mining lease in one state for more than 10 square kilometre, a prospecting licence for more than 25 sq km, and a reconnaissance permit for more than 10,000 sq km (5,000 sq km per permit translating into two permits). |
| While a reconnaissance permit is the initial stage of exploration where the permit is granted for preliminary prospecting of a mineral, prospecting licence is granted for undertaking operations for exploring, locating or proving mineral deposit. Mining licence is granted for undertaking operations for extracting any mineral. |
| There are 67 major minerals of which the 10 scheduled minerals comprising metallic and non-metallic minerals are covered under the restrictions. Officials said the private companies engaged in mining were finding these specifications restrictive. Companies also felt that there was inadequate incentive for them, especially since the mining lease could not be granted for more than 10 square kilometre in a state. |
| Major minerals are those for which concessions are granted by state governments, subject to the rules prescribed in the Centre's Mineral Concession Rules, 1960. Minor minerals, on the other hand, are those for which states are empowered to frame rules for the grant of mineral concessions. |
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