National Mineral Policy 2006 - Department of Mines

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application. A similar website should be maintained by the Ministry of Minesfor showing the position of each case from the time that the reference isreceived from the state government for according prior clearance.(viii) Simplification of procedures as suggested in paragraph 2.27 below will alsoreduce the time taken by the DMO and the DMG for determining theavailability of areas. In addition, the Committee has made a number ofrecommendations in Chapter 3 for expediting forest and environmentalclearances.ADHERENCE TO TIME SCHEDULES FOR CONSIDERATION OFAPPLICATIONS FOR RP, LAPL/PL, AND ML2.15 The issue of delays in disposal/approval of mineral concession applications has been amajor concern of the mining industry. Recognising the deterrent effect of such delays onmining investment in India, Rule 63A of the MCR lays down the following time limits withinwhich applications for various types of concessions should be finalised:a) Reconnaissance Permit–within six months from the date of receipt;b) Prospecting License–within nine months from the date of receipt;c) Mining Lease–within twelve months from the date of receipt;Provided the applications are complete in all respects;Provided also that in case the State Government is not able to dispose of the application within theperiod as specified, the reasons for the delay shall be given in writing.In the light of the recommendation made in Chapter 1 for making the grant of RP nonexclusiveit may not be necessary to give a time of more than three months for such permits.2.16 A proviso in Rule 63A of MCR provides that ‘in case the State Government is notable to dispose of the application for reconnaissance permit, prospecting licence or mininglicence within the period as specific above, the reasons for delay shall be given in writing’. Inreality, neither the time schedules are being observed nor the reasons are being given inwriting. Delays of 14–60 months are not uncommon. This is because there are no provisionsin the MMDR Act giving teeth to the time schedules by way of remedial action in case thetime limits are not adhered to. The Committee attaches great importance to the need toremedy this deficiency.58
2.17 Section 30 of the MMDR Act, which gives the power of revision to the Centralgovernment, reads as follows:Section 30: Power of revision of Central Government: The Central Government may, of its own motion oron application made within the prescribed time by an aggrieved party, revise any order made by a StateGovernment or other authority in exercise of the powers conferred on it by or under this Act with respectto any mineral other than a minor mineral.2.18 While this section could be invoked in cases in which the state government has passedan order there is no provision that could be invoked for providing relief in cases in which thetime limits are not adhered to and the state government has not passed any order at all orwhere the order has been issued (with or without reasons) but the time limits have not beenadhered to.2.19 In order to redress the situation described in the previous paragraph, the Committeewould recommend that Section 30 of the MMDR Act be amended to give jurisdiction to theCentral government to entertain applications from aggrieved parties and take a final decisionthereupon in the event of failure of the state government to take a decision within the timeframe envisaged in Rule 63A of MCR 1960. The revised Section 30 would read as follows:Section 30: Powers of the Central Government: The Central Government may ofits own motion or on application made within the prescribed time by an aggrievedparty:i. revise any order made by a State Government or other authority in exercise ofthe powers conferred on it by or under this Act with respect of any mineralother than a minor mineral, orii. Where no such order has been made by the State Government or otherauthority (in exercise of the powers conferred on it by or under this Act withrespect to any mineral other than a minor mineral) within the time prescribedtherefore (under Rule 63A), pass such order that it may think fit andappropriate in the circumstances:Provided that in cases covered by clause (ii) above, the Central Governmentshall, before passing any order under this clause, give an opportunity to the59
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National Mineral PolicyReport of th
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ContentsAcronyms...................
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Annexure 5: Using the GRI Guideline
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GDP gross domestic productGIS Geogr
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UNFCUSVATWCUUnited Nations Framewor
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Introduction1. The Government of In
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issues relate to fund raising by pr
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termination of MLs, lowering of cei
Page 18 and 19: • In the case of large mining ope
Page 20 and 21: investment. The work done by GSI co
Page 22 and 23: mainly for minerals of base metals
Page 24 and 25: 1.21 This situation has changed dra
Page 26 and 27: absent. A study by the United Natio
Page 28 and 29: example, a mining major may outsour
Page 30 and 31: would otherwise remain unexploited
Page 32 and 33: the policy environment must continu
Page 34 and 35: ‘A thrust is to be given to explo
Page 36 and 37: In reviewing the MMDR Act, it is ne
Page 38 and 39: permissible activities in order to
Page 40 and 41: (i)(ii)(iii)(iv)The current two-tie
Page 42 and 43: per plan should be significantly hi
Page 44 and 45: Duration of Concessions1.48 In the
Page 46 and 47: 10,000 sq. km in a state. This has
Page 48 and 49: (ii)(iii)(iv)The maximum total area
Page 50 and 51: e obviated if the lease deed is exh
Page 52 and 53: elinquishment of areas by the lesse
Page 54 and 55: to give priority to the prior appli
Page 56 and 57: (v)(vi)(vii)Rules should be prescri
Page 58 and 59: esponsible for all rights, liabilit
Page 60 and 61: ut also the revenue generated from
Page 62 and 63: government at the Secretariat. A le
Page 64 and 65: Secretary. If the Directorate is in
Page 66 and 67: (i) All applications for mineral co
Page 70 and 71: concerned State Government (or othe
Page 72 and 73: Further, Rule 7D of the MCR specifi
Page 74 and 75: mission mode through, inter alia, t
Page 76 and 77: Chapter 3Forest Conservation and En
Page 78 and 79: conservation. There are trade-offs
Page 80 and 81: ICMM AND SDF3.8 The ICMM membership
Page 82 and 83: higher level. The basic approach is
Page 84 and 85: (i) To minimize displacement and to
Page 86 and 87: affected PAPs in the mining operati
Page 88 and 89: that a well-regulated and responsib
Page 90 and 91: (iii)Notwithstanding the above, sur
Page 92 and 93: egard, all ‘forest’ land must b
Page 94 and 95: Figure 3.1: Procedure for Processin
Page 96 and 97: should be authorised to grant or re
Page 98 and 99: formulation and appraisal of the EI
Page 100 and 101: 3.41 Recognising the need to make t
Page 102 and 103: Figure 3.3: Public Hearing/NOC from
Page 104 and 105: Chapter 4Infrastructure Needs and F
Page 106 and 107: 4.5 Logistics is the key to access
Page 108 and 109: Table 4.1: Mineral Production in In
Page 110 and 111: necessary, therefore, that in infra
Page 112 and 113: to the ports of Haldia and Paradip
Page 114 and 115: Connectivity of Major Ports, brough
Page 116 and 117: (iv)(v)(vi)(vii)At Visakhapatnam Po
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was of the opinion that while the m
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such an arrangement, the Ministry o
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developed, controlled, and run by s
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subject to overt and covert restric
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consideration to the end use of the
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(iii)parameters laid down in existi
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Chapter 6Augmenting State Revenues(
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the value addition question conside
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In a system of ad valorem rates of
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must provide revenues sufficient to
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Box 6.1: Methods of Valuation of Ro
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Another point to be borne in mind b
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ailable, cognisable criminal offenc
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e worked out. This should be string
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7.3 Considering the high-risk natur
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Table 7.2: Minimum Listing Requirem
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(ii)(iii)only. Such funds have not
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addition, the minimum post-issue fa
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and hence this ore should be conser
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miners distort the market for their
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7.22 The current law does not make
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is mostly of low grade magnetite. H
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Most magnetite findings are entirel
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in UK 206 kg, and in China it grew
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metres. The use of down hole drill
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7.42 Despite the fact that SME mini
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also be a consideration. However, t
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price, reduce profitability, and pu
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IMPACT ON DOMESTIC IRON ORE PRICES
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7.58 Export of iron ore fines on a
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POLICY ON BEACH SAND MINERALS7.64 B
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not contain more than 0.1 per cent
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7.73 On 18 January 2006, the DAE no
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with the Centre is mainly to ensure
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India enterprise) reported that the
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chloride process pigment technology
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are disposed of in the mined-out ar
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directed to ensure that the AERB/AM
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would have to be carefully drafted
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‘In coordination with the Geologi
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Exploration Licences• The current
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• The fees should be significantl
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surveys have been undertaken, the P
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automatic until the exhaustion of t
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y stating in the MMDR Act that a pr
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departmental representative for sec
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therefore (under Rule 63A), pass su
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• Section 12(1) of the MMDR Act s
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o The lessee should not be asked to
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again and the State Mines Departmen
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• As in the past, no environmenta
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oad and rail, and lack of long-term
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government to the applicants who ar
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next three-year period as well. In
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• Rates of dead rent should be ra
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measure to provide a level playing
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• In respect of three titanium be
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No-I&M-25(3)/2005Government of Indi
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No-I&M-25(3)/2005Planning Commissio
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‘Efforts would also be made to gr
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ecommending amendments to the Act a
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etained as a Prescribed Substance u
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OthersShri Arvind VarmaEx-Secretary
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16. Reserve Bank of India17. M/s Ji
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the RP holders in areas beyond 25 s
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Appendix ERecommendations of the Ex
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(1) Provide proximate and strategic
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technology to enter the Indian stee
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Cross-country Comparison of Mining
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Appendix F (cont.)Country Mining La
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Cross-country Comparison of Mining
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Appendix G (cont.)Country Mining le
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CountryAppendix H (Cont.)Environmen
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AustraliaIndonesia 9 4 Not specifie
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Annexure 1 (cont.)Geologicalenviron
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operations are undertaken over a fa
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B. After Rule 54 of the Mineral Con
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the Central Government to entertain
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applications, could exercise the ju
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We most humbly request that the abo
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Annexure 4The 2002Sustainability Re
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While unique in its coverage and pr
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• facilitate comparability• add
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AssuranceJust as investors look to
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The Guidelines are structured in fi
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There are many aspects relevant for
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- Issues in which community partici
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Annexure 7Royalty Accruals on Miner
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Sl.No.MineralAnnexure 8 (cont.)2003
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Annexure 91 THE SECOND SCHEDULE 1(S
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(v) Group V Coals:(a) Non-Coking Co
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23. Iron Ore:(i) Lumps:(a) with 65
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45. Tin Five per cent of London Met
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International Comparison of Royalty
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Production, Consumption, Exports, a
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National Mineral Policy 2006 - Department of Mines

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