National Mineral Policy 2006 - Department of Mines

the RP holders in areas beyond 25 sq. km. Initially the Committee had recommendedmaximum area under PL to be increased to 100 sq. km in a State but after furtherdeliberations with the State Governments, FIMI and other investors, the Committee hasrecommended a maximum PL area of 500 sq. km for RP holders who undertake aerial surveywith an escalating fee structure. The limit for direct PL applicant has been kept at 25 sq. kmsin the recommendations.(iv)Transfer of RPPresently, though PL and ML are transferable, there is no provision for transfer of RPs. Inview of the fact that in most legal regimes there was no restriction on transfer andtransferability is one of the important elements of mining sector reforms, the Committee hasrecommended that RPs be made transferable with the prior approval of the Central Govt.(v)Inclusion of other minerals in RPOn the issue of inclusion of other minerals in RP which is presently allowed only in case ofPL and ML, the Committee was of the view that there should not be any restriction oninclusion of any other mineral which may be located during reconnaissance operations unlessthose minerals are included in any other mineral concession in that area or for which anothermineral concession has already been applied for. Therefore, the Committee recommendedthat with certain conditions, minerals discovered during reconnaissance be allowed to beincluded in the RP.(vi)Preference for grant of mineral concessionThe Committee felt that since core competence of a mining company is to undertakescientific mining, it is not correct to evaluate the merits of an applicant for a mineralconcession in terms of the proposed investment for setting up of future downstream units asis presently provided for. Instead merit of an applicant for mineral concession should bejudged on the basis of proposed ‘end use’ of the mineral.(vii)Reservation of area for State exploitation236