National Mineral Policy 2006 - Department of Mines

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egard, all ‘forest’ land must be notified in the official Gazette so that there is no scope forsubjectivity in interpretation.3.25 While suggesting changes in the procedures, the Committee is conscious that bothconservation as well as development are of paramount importance and a balance has to bestruck so that sustainable development ensuring integration of environmental, economic, andsocial considerations is possible. The environment needs to be fully protected and the floraand fauna have to be preserved and restored using the best available technologies and evenbrought to a state that is superior to the original state.3.26 It may be relevant to mention that when the FCA was enacted in 1980, the ForestDepartment in each state was headed by Chief Conservator of Forest (CCF), supported byConservator of Forest (CF) and Divisional Forest Officer (DFO). Since then, two more levelshave been added in the Forest Departments and the full structure is as follows:• Principal Chief Conservator of Forest (PCCF)• Additional Principal Chief Conservator of Forest• Regional Chief Conservator of Forest (RCCF)• CF• DFO.Since in all proposals the comments of all the officers listed above are sought, the number ofdesks through which the papers have to pass has thus increased. In addition, another office ofAdditional Chief Conservator of Forest to support wildlife has been created in almost all thestates, and clearances from that office are also sought from the angle of wildlife in the forestareas proposed for diversion.3.27 As per the procedure prescribed in the Forest (Conservation) Rules (FCR) in 1981, asamended in February 2004, a user agency has to apply for diversion of forest land for miningpurposes (in Form-A if it is a new proposal, Form-B if the proposal is for renewal) to thenodal officer of the concerned state government who is located in the Forest Department ofthe state government. The user agency also has to endorse a copy of the proposal along with acopy of the receipt obtained from the office of the nodal officer to the concerned DFO and/orCF, Regional Office of the MOEF, as well as to the monitoring cell of the Forest82
Conservation Division of the MOEF. The nodal officer, if the proposal is complete in allrespects, has to forward the same to the DFO within a period of 10 days from its receipt. TheDFO or the CF shall examine the feasibility of the proposal within a period of 90 days andsend it back to the nodal officer. The nodal officer has to then send the proposal to the PCCFwho has to forward it to the state government within a period of 30 days. Finally, the stategovernment has to forward the complete proposal along with its recommendations to theMOEF as well as to its Regional Office within a period of 60 days of the receipt of theproposal from the nodal officer. In all, Rule 6(3) of FCR stipulates that the state governmentshall process and forward its proposal to the Central government within a period of 210 daysfrom receipt, including the transit period.3.28 If investment in mining activity is to be encouraged on a large scale then the problemof procedural delays and time overruns will need to be addressed. It is more than two and ahalf decades since the FCA came into operation and discussions that have taken place invarious fora to streamline the procedures for forest clearance have been largely in vain. In theCommittee’s view, immediate action is now required. Internationally, applications are clearedwithin a period of about six months and India cannot expect significant FDI in the mineralssector unless it falls in line with international norms.3.29 Figure 3.1 shows the various stages in the processing of proposals for obtainingpermission to mine in forest land. The industry representatives pointed out that the timeframe envisaged in the FCR is observed more in breach than in compliance. It takes aminimum of three to four years and sometimes even five to seven years for proposals to cometo the Central government. The maximum delays take place at the level of the DFO in theprocess of evaluation of the cost/benefit of the proposal, involving also enumeration of trees.The time overruns apply not only for fresh grants but also to renewals since as per theSupreme Court judgment, renewals are to be treated as fresh grants. The Committee feels thatto minimise delays at the level of the DFO, the cost–benefit analysis of the proposal,including the enumeration of trees, should be outsourced by the DFO to competent privatesector consultants. The Forest Department of the state government should maintain a panel ofrecognised consultants for this purpose.83
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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
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• In the case of large mining ope
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investment. The work done by GSI co
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mainly for minerals of base metals
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1.21 This situation has changed dra
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absent. A study by the United Natio
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example, a mining major may outsour
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would otherwise remain unexploited
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the policy environment must continu
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‘A thrust is to be given to explo
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In reviewing the MMDR Act, it is ne
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permissible activities in order to
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(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 68 and 69: application. A similar website shou
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 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
Page 118 and 119: was of the opinion that while the m
Page 120 and 121: such an arrangement, the Ministry o
Page 122 and 123: developed, controlled, and run by s
Page 124 and 125: subject to overt and covert restric
Page 126 and 127: consideration to the end use of the
Page 128 and 129: (iii)parameters laid down in existi
Page 130 and 131: Chapter 6Augmenting State Revenues(
Page 132 and 133: the value addition question conside
Page 134 and 135: In a system of ad valorem rates of
Page 136 and 137: must provide revenues sufficient to
Page 138 and 139: Box 6.1: Methods of Valuation of Ro
Page 140 and 141: 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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