National Mineral Policy 2006 - Department of Mines

e worked out. This should be stringently applied to captive miners and PSUs aswell.(iv) The state governments would get revenues from the disposal of the ore bodiesthat have been explored earlier at public expense by an open tender/auctionsystem as explained in Chapter 1.(v) Transfer fees should be levied on PLs and MLs sought to be transferred. Asmentioned in Chapter 1, the unbundling of prospecting from mining is likely tobring in investment in the form of FDI into prospecting along with advancedtechnology. When the PL or ML of a prospected area is transferred for apremium by a prospecting firm in favour of a mining firm or if the firm itself istaken over or acquired by a mining firm for a consideration, a transfer fee as apercentage of the premium or consideration may be levied. Such a step would bein line with international practice. The rates of transfer fee should be suggestedby the next study group set up for making recommendations on royalty rates.134