National Mineral Policy 2006 - Department of Mines

consideration to the end use of the mineral by the applicant over the other criteria listed inSection 11(3) in granting concessions. With reference to this Rule the point was also madethat when the Act already enables the state governments to consider ‘the investment whichthe applicant proposes to make in the mines and in the industry based on the mineral’ as oneof the matters to be considered in selecting an applicant, it is redundant for Rule 35 to addthat the ‘end use of the mineral by the applicant’ will be another criterion. These provisionshave resulted in delays in disposal of the applications for PL and ML, as state governmentshave preferred to wait until such times as they get an applicant who proposes to set up anindustry as well. The point was also made in the Committee that while Section 11(3)(d)enables the state government to attach weight to the proposal for investment in industry basedon the mineral there is no provision in Rule 27 that enables the state government to attach thecondition pursuant to that provision in those cases in which weight has been attached to suchproposal. Another point that was made during the deliberations of the Committee was thatwhile investment in the industry based on the mineral is a criterion in Section 11(3)(d) anequally important criterion that cannot be ignored is Section 11(3)(a) that attaches importanceto expertise in mining. In rare cases, the mining company itself may have the additionalexpertise to set up industrial units (steel plants in the case of iron ore), but the more commonsituation would be of tie-ups between the mining company and the end-user industry. Thescope of Section 11(3)(d) needs to be broadened in order to cover not only those cases inwhich the applicant company itself proposes to make an investment in industry based on themineral but also those cases in which the applicant has a tie-up with other companies (withthe necessary industrial experience) to establish an industrial unit in the state.5.10 There is also the question whether the weight or preference for value adders can applyonly to applications for ML or also to those for LAPL or direct PL. Applicants for direct PLor LAPL could also offer to undertake commitments to establish industry based on themineral in the event they move on to the next stage of ML and may be granted the PL orLAPL on the strength of such a commitment. In some cases, holders of such concessions,particularly large integrated firms, may like to apply for ML after completing the prospectingwork and actually engage in mining operations. In other cases, such as those of juniors whospecialise in exploration activity, they may like to transfer the PL or LAPL along with theresults of prospecting activity to firms specialising in mining operations. Such holders of thePL or LAPL should be entitled to transfer their right without any hindrance at any stage, on116