National Mineral Policy 2006 - Department of Mines

Exploration Licences• The current two-tier system of RP and PL should be replaced by a three-tier system ofRP, LAPL, and PL. [1.44]• As regards RPs, an ‘open sky’ policy should be adopted by granting non-exclusiveRPs without any preferential or automatic right to a PL but also without muchregulation, i.e. by relaxing most of the conditions mentioned in Rule 7 of the MCRand Form F-1. In fact, a fresh memorandum of understanding (MOU) and PermitForm will need to be prepared for this purpose. The ‘open sky’ RP policy wouldapply not only to areas that are greenfield areas, i.e. where no work has been done byGSI or any other public agency, but also to areas where GSI and/or RP holders havegiven up work without identifying any workable prospect for detailed exploration. Forthe first few years, non-exclusive RPs can only be granted for areas that are not heldunder current RPs, which have been granted and are operational as per the presentscheme, or for areas relinquished by existing RP holders. This will give impetus toinvestment in regional exploration where a vast amount of work still needs to be done.The only obligation on the RP holder would be to periodically file data of the workdone with appropriate lock-in arrangements for the same. Non-exclusive RPs may begranted by the state governments without prior approval of the Centre, even in respectof Scheduled minerals. [1.44]• The RP holder would be entitled to a LAPL/PL on the basis of first-in-time principleand not merely on the priority principle currently in use. This right will be automaticwith no discretion to either the state government or the Centre to refuse or hold backthe LAPL/PL thus assuring a seamless transition from RP to PL for the first-in-timenon-exclusive RP holder. However, fulfilment of the data requirement as laid down inthe MCR as a condition precedent to the grant of LAPL/PL to the RP holder wouldhave to be rigorously ensured. [1.44]• RPs for an area would not be restricted to one permit holder or one mineral. Under the‘open sky’ policy, RPs can be granted for the same area to more than one applicant on188