National Mineral Policy 2006 - Department of Mines

Chapter 2Procedures for Granting Mineral Concessions(Term of Reference no. 2)To review the existing procedures for granting reconnaissance permits, prospecting licencesand mining leases and suggest ways for their streamlining and simplification2.1 In this chapter, we deal with the second term of reference, which relates to theprocedural issues. The main points to come out of the Committee’s interaction with thestakeholders relate to delays inherent in complex procedures and decision making at multiplelevels.PROCEDURAL COMPLEXITIES2.2 Procedural complexities resulting from the need to obtain clearances from a numberof different authorities under different statutes and rules are identified as a major deterrent inthe way of mining investment in India. One representation made by Geomysore Services(India) Pvt. Ltd. (a division of the Australian Indian Resources Group of Companies)revealed that a PL application by a RP holder has to pass through 77 desks. The procedures,which involve statutory and non-statutory clearances from multiple agencies, take a minimumof 485 days. In addition to clearances required both at the Central and state levels under theMMDR Act, 1957, MCR, 1960, and MCDR, 1988, clearances are also required again at bothlevels under the Forest (Conservation) Act, 1980 (FCA) and Environment (Protection) Act,1986 (EPA) before a ML can be executed.2.3 MCR, 1960 provides for each state government to follow its own procedures whileprocessing applications for mineral concessions. In most states, applications are accepted inthe office of the District Collector since all mining operations are land related in afundamental way. After being examined at the District Collectorate and field levels (tehsil,village) the application is forwarded to the office of the Director of Mining and Geology. Theproposal is examined in the DMG and then sent to the Mining Department of the state51