A Guide to Investment in India’s Mineral Sector
National Mineral Policy (NMP) 2008 The National Mineral Policy 2008 brought out by the Union Government aims at achieving the twin goals of large scale prospecting with optimal mining and attracting investments with the latest technology. The salient features of the NMP include :Role of the State • • •
The Central Government in consultation with State Governments shall formulate the legal measures (including corresponding amendments in the MMDR Act, the MCR and the MCDR) necessary for implementing NMP, 2008. Geological Survey of India(GSI), Indian Bureau of Mines(IBM) and the state Directorates of Geology and Mining(DGM) would be upgraded to the level of stateof-the-art. Private sector would be the main source of investment in reconnaissance and exploration and government agencies will work only in areas where private investment is not forthcoming despite the desirability.
Improving Regulatory Environment to Attract Private Investment • •
Allocation of concessions to be fully transparent and seamless; the security of tenure to be guaranteed. The first in time principle in the case of sole applicant and the selection criteria in the case of multiple applicants.
Value Addition • •
Preference may be given to a value addition industry, but not at the cost of security of tenure to a holder of concessionaire. To get advantage of multiplier effect of mineral development, value addition would be encouraged.
Regulation of Mining • • •
An open sky policy of non-exclusivity for reconnaissance work would be adopted to expedite the completion of reconnaissance of the entire country. Large Area Prospecting Licence (LAPL), a new instrument, would be introduced to attract investment and high technology. Duration of all concessions would be rationalized and the area of operations enlarged. A mining tenement registry and a mining atlas will be prepared by IBM in coordination with GSI, for the development of a proper inventory of resources and
17
