National Mineral Policy 2006 - Department of Mines

o The lessee should not be asked to pay NPV each time a lease is renewed.[3.22]• Once the Hon’ble Supreme Court has passed a final order in the matter of T. N.Godavarman Thirmulkpad vs. Union of India & Others, all ‘forest’ land must benotified in the official Gazette so that there is no scope for subjectivity ininterpretation of FCA. [3.24]• If investment in mining activity is to be encouraged on a large scale then the problemof procedural delays and time overruns will need to be addressed. It is more than twoand a half decades since the FCA came into operation and discussions that have takenplace in various fora to streamline the procedures for forest clearance have beenlargely in vain. In the Committee’s view, immediate action is now required.Internationally, applications are cleared within a period of about six months and Indiacannot expect significant FDI in the minerals sector unless it falls in line withinternational norms. [3.28]• The maximum delays take place at the level of the DFO in the process of evaluationof cost/benefit of the proposal, involving also enumeration of trees. The time overrunsapply not only for fresh grants but also to renewals since as per the Supreme Courtjudgment, renewals are to be treated as fresh grants. The Committee feels that tominimise delays at the level of the DFO, the cost–benefit analysis of the proposal,including the enumeration of trees, should be outsourced by the DFO to competentprivate sector consultants. The Forest Department of the state government shouldmaintain a panel of recognised consultants for this purpose. [3.29]• Minerals are the property of the states, as are the forests too. Proposals for miningconcessions for Schedule I minerals (MMDR Act) have to receive prior approval fromthe Central Government in the Ministry of Mines. However, in the case of forestry, allproposals require clearance from the MOEF (upto 40 hectares from the RegionalChief Conservators of Forest of MOEF stationed at Bangalore, Bhubaneswar, Bhopal,Shillong, Lucknow, Chandigarh, and Ranchi, and above 40 hectares directly from the204