Parl panel flags delays, seeks clearances for critical mineral projects

A Parliamentary Panel has flagged delays between mine auctions and operationalisation and has urged the government to explore setting up an inter-ministerial committee to monitor the post-auction progress for mineral and critical mineral projects.

The panel also stressed that critical mineral projects should be given priority in necessary statutory clearances.

"Although policy initiatives and simplification of exploration norms for auction of mineral blocks are in place, the Committee feels that the lengthy process of regulatory clearances, inadequate exploration, forest clearance requirement even at the exploration stage, considerable time lag between auction of mines and their operationalisation, etc., needs to be looked into," it said.

The observations were made by the Standing Committee on Coal, Mines and Steel in its latest report titled "Self-Reliance in Minerals and Metals".

"In view of these persistent challenges, the committee desires to explore the possibility of setting up an inter-Ministerial Group for monitoring post-auction progress of both mineral and critical mineral projects with the mandate to fast-track operationalization of allocated mines.

"Penalties for delayed operationalisation and incentives for fast-track production may also be considered to improve compliance and efficiency," it said.

The committee acknowledged significant policy reforms undertaken from 2015 to 2023 to modernise the regulatory framework governing India's mineral sector.

The panel said it recognises that substantial policy reforms were implemented between 2015 and 2023 to modernise the country's mineral sector regulatory framework.

Key changes to the Mines and Minerals (Development and Regulation) Act, 1957 includes introduction of the auction method for grant of mineral concessions, uniform lease period of 50 years for all leases in place of provision of renewal of lease period, notification of private exploration agencies, and amendments in Offshore Areas Mineral (Development and Regulation) Act, 2002 by introducing auction as the method for allocating operating rights in offshore areas.

Since 2015, 486 mineral blocks have been auctioned, which include 462 by the state and 24 by the Centre.