National Mineral Policy 2006 - Department of Mines
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National Mineral Policy 2006 - Department of Mines

National Mineral Policy 2006 - Department of Mines National Mineral Policy 2006 - Department of Mines

planningcommission.gov.in
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12.07.2015 Views

(1) Provide proximate and strategic security of these critical raw material for1. Existing and under commissioning steel capacities and for2. Rapid and orderly growth of a globally competitive Indian steelindustry.(2) Promote globally comparable best practices in (iron ore, chrome ore andmanganese ore) mines for optimizing extraction of metallic values from) minedmaterial, minimizing waste and rehabilitating post-mining environment, with a viewto long term strategic conservation of metallic content for future needs for sustainabledevelopment.(3) Encourage efficient, scientific, sustainable and globally competitive miningpractices, with utmost care for preservation and enhancement of the environment andnatural bio-diversity.9. The Preferences are based on multiple levels of interaction by the Expert Group withrepresentatives from a large cross-section of steel makers, mine operators and technologistsin the mineral and metallic industries, and endeavour to incorporate relevant availabletechnical knowledge and information at this point of time.10. The very concept of enunciating a Preferential Schedule cannot be disassociated fromthe requirement of ensuring implementation of the conditionalities which alone justify andare the very essence of according preference to one party over another. The conditionalitiesare therefore incorporated as part and parcel of the preferences.11. Special care has to be taken to ensure that such a scheme of preferences does notbecome an opportunity for anyone to lock up mineral reserves and obstruct the existingwidely dispersed and well managed private sector iron ore mines.12. The effective implementation and fulfillment of the conditionalities will requireelaborate exercises in order to construct relevant legal protocols, structure appropriatereporting and monitoring mechanisms etc. This is not within the scope of the present limitedexercise.240

13. The proposed set of reference is based on the following broad considerations ofnational interest:-(i)The existing public sector integrated steel plants represent massive investmentsof public money already made. It is of highest priority to safeguard sufficient rawmaterial reserves not only for the existing capacities of these plants, but also their incampus expansion and capacity optimization to the maximum extent feasible andapproved by the Central Government.(ii)Other major integrated steel plants of Indian public limited companies alsorepresent large national investments of money, not just by promoters but also byIndian public at large, whether directly or through financial institutions. Hence, theseinvestments also need to be assured reasonable long term raw material security. Tothe extent that such plants are already operating or are under commissioning byMarch 2006, their long term requirements of iron ore must be provided for on priority.(iii)In furtherance of the objective of expanding Indian steel production, iron ore has to beearmarked for new greenfield integrated plants and also for brownfield expansionof existing plants by the private/public sector. However, there are large number ofproposals from private sector for setting up new plants and expanding existingcapacities. Not all of them can be depended upon to materialize in a time bound andefficient manner. It is, therefore, essential to build stringent safeguards into the termsand conditionalities under which such private promoters are afforded the privilege ofpreferential grant of lease. It is also to be ensured through watertight and legallytenable protocols, that no applicant is able to lock up precious iron reserves byadopting delaying tactics, political maneuvering or legal tangles. Stringentadditional penalties should also be stipulated, apart from automatic lapsing of suchleases without legal recourse.(iv)In view of the paramount need to take a quantum leap in steel capacity and percapita steel consumption and keeping in mind domestic financial and technologyground realities, there should be no barrier for one or two large foreign entitieswith proven track record and access to global finance and cutting edge241

(1) Provide proximate and strategic security <strong>of</strong> these critical raw material for1. Existing and under commissioning steel capacities and for2. Rapid and orderly growth <strong>of</strong> a globally competitive Indian steelindustry.(2) Promote globally comparable best practices in (iron ore, chrome ore andmanganese ore) mines for optimizing extraction <strong>of</strong> metallic values from) minedmaterial, minimizing waste and rehabilitating post-mining environment, with a viewto long term strategic conservation <strong>of</strong> metallic content for future needs for sustainabledevelopment.(3) Encourage efficient, scientific, sustainable and globally competitive miningpractices, with utmost care for preservation and enhancement <strong>of</strong> the environment andnatural bio-diversity.9. The Preferences are based on multiple levels <strong>of</strong> interaction by the Expert Group withrepresentatives from a large cross-section <strong>of</strong> steel makers, mine operators and technologistsin the mineral and metallic industries, and endeavour to incorporate relevant availabletechnical knowledge and information at this point <strong>of</strong> time.10. The very concept <strong>of</strong> enunciating a Preferential Schedule cannot be disassociated fromthe requirement <strong>of</strong> ensuring implementation <strong>of</strong> the conditionalities which alone justify andare the very essence <strong>of</strong> according preference to one party over another. The conditionalitiesare therefore incorporated as part and parcel <strong>of</strong> the preferences.11. Special care has to be taken to ensure that such a scheme <strong>of</strong> preferences does notbecome an opportunity for anyone to lock up mineral reserves and obstruct the existingwidely dispersed and well managed private sector iron ore mines.12. The effective implementation and fulfillment <strong>of</strong> the conditionalities will requireelaborate exercises in order to construct relevant legal protocols, structure appropriatereporting and monitoring mechanisms etc. This is not within the scope <strong>of</strong> the present limitedexercise.240

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