Mines Min approves SBI Cap's plan to incentivise exploration

Mines Ministry has approved the framework suggested by SBI Cap for incentivising private companies in exploration of minerals, Parliament was informed today.
Earlier this year, the Geological Survey of India (GSI) had identified 100 exploration blocks for which the ministry had roped in SBI Cap to prepare the modalities for auction of these blocks.
SBI Capital Markets (SBI Cap) has been appointed as the consultant by the Ministry for developing the procedural and contractual framework for engagement of private firms in mineral exploration under the provisions of National Mineral Exploration Policy (NMEP), Mines Minister Piyush Goyal said.
In a written reply to Lok Sabha, the Minister added: "The conceptual framework prepared by SBI Cap has been approved by the Ministry."

It was discussed with the stakeholders in a workshop on November 15 and the operational details are under finalisation, he added.
Under the NMEP 2016, government proposes incentivisation of explorers in the way of providing costs for the operations carried out during mineral exploration and sharing of revenue in case of successful auction of mining blocks, he added.
Out of 100 mineral blocks, 22 have been earmarked for the private sector. While, 30 blocks will be explored by Mineral Exploration Corporation, 18 would be done by state owned agencies and rest 30 by GSI.
Government will reimburse the costs to exploration firms that fail to find mineral wealth from the National Mineral Exploration Trust while, offering them a share of the revenue from blocks where they strike extractable reserves.