National Mineral Policy 2006 - Department of Mines

scores on various parameters of interest to investors compared to other resource countriessuch as Australia, Brazil, Chile, China, and Indonesia.ISSUES RELATED TO POLICY AND STATUTES1.18 As many as 27 representations were received and 21 presentations were made beforethe Committee, and it is significant that the issues relating to the regulatory dispensation runas a common theme in all these representations. While they vary in their specifics, thecommonality can be identified under three heads, viz. policy issues, statutory issues, andprocedural issues. In this chapter, we deal with the first two only. Procedural issues are dealtwith in Chapter 2.POLICY ISSUES1.19 Para 4 of the NMP document states that the provisions of the MMDR Act and theRules will be reviewed from time to time and harmonised with the policies governingindustrial and socio-economic developments in the country. Since the current NMP is nowover a decade old, it is necessary to examine the needs of the mining sector in the context ofthe increasing economic liberalisation in India and the overall process of globalisation in theworld economy and revisit our mining policy, law, and rules. The NMP of 1993 is in need ofbeing updated in the context of the changed nature of the world mining industry byincorporating those international best practices that would best fulfil the expectations andneeds of the country’s mineral sector.International Scenario1.20 Over the last two decades or so notable changes have occurred in the mining policiesof governments across the world. Just 20 years ago, significant national or regional barriersprevented the international flow of investment in mining. Many of the Latin Americaneconomies required that at least 51 per cent of the investment in a mining project be held bynationals, 2 and in many instances, large-scale mining was done mainly by governmententerprises. Centrally planned economies did not permit private investment. In some nations,including India, Japan, and the United States of America (USA), security of supply or selfsufficiencywas a primary concern.2Decision 24 of the Andean Pact stipulated that 51 per cent ownership was to be held by local investors.13