Govt to start auctioning for 70 mine leases by year-end

 
The demand for various metals and minerals is anticipated to grow by 4-5 times over the medium term perspective in the country. The mining industry is expected to contribute 5-6 percent to the Indian GDP in next decade.
 
Stating that in years to come mining is expected to be a key industry attracting huge investments (both domestic and foreign) thereby generating additional employment, Sai said that a National Mineral Exploration Trust has been set up to enhance mineral exploration in the country and the District Mineral Fund has been created for the benefit of the society affected by the mineral operations.

 
While highlighting the initiatives of the government to give a thrust to the mining sector, Balvinder Kumar, Secretary, Ministry of Mines, said, “The draft exploration policy, which is in the public domain, will be revised soon to include some critical aspects. Mining is a distressed sector at present but the government is committed to usher in a new era of reforms to revive the sector, which started with the amendment of MMDR Act.”
 
The government is also working out a detailed plan to allow private players to actively participate in exploration and for this, at present, two options are being considered. One is to earmark blocks of large areas and offer to parties for exploration. Then the chosen party after exploration would auction the block to the state government and the state would share the production cost of the exploration by giving them a fixed return on the premium for an agreed tenure. In the second option, a lump sum amount would be offered to the exploration company on attractive returns. Kumar added that if after exploration no extraction block is found, then the exploration party would be free to sell data.

 
“Concession on custom duty is also being considered to allow import of exploration equipment in the country. Besides, MECL and state PSUs will be encouraged to enter into joint ventures with global players for exploration. Separate policy for deep seated minerals such as diamond and gold is being considered which will lead to amendment in MMDR Act,” informed Balvinder Kumar.