To fast-track and simplify the process of allocation of mines, the government has issued fresh guidelines that effectively does away with the first-come, first-served policy, which is currently followed for auction for licences based on technical parametres including size of the financial bid.
The guidelines that came into force with immediate effect on November 1, seek to bring in more transparency in the process of allocation and reduce the number of pending allocations.
The major pre-requisites to be considered before allocation of a mine include technical expertise, financial strength and proposed investment, value addition to the end-use project and financial bid as a percentage of royalty. Further, to prevent arbitrary proposals, allocation has been barred for areas that have not been prospected for minerals. Besides, non-notified land also can no longer be allocated.
“State governments have been requested to process all proposals in accordance with these guidelines to facilitate expeditious disposal of mineral concession applications. Nearly 64,000 mining applications in various stages are pending before state governments while another 287 licence execution cases and 2,577 renewal applications are also pending,” a mines ministry official said.
“This sector needs to move on. These guidelines supersede all previous instructions in this regard,” he added.
The guidelines also lay down strict timelines for each step of allocation of mines including environment and forest clearances.
Requirement of multiple clearances, which lead to inordinate delays, have been a major hurdle in attracting fresh investments in the sector even, as increased litigation has resulted in declining output in recent years.
From being the third-largest iron ore exporter in the world behind Australia and Brazil in 2009, India has slipped to a net importer of the key raw material in steel manufacturing, due to bans imposed in states such as Karnataka, Odisha and Goa.
The industry is sceptical of these guidelines.
“There is nothing very new in these guidelines and it is just a bit of clever simplification and consolidation of existing laws,” said the owner of a mining company based in Bellary in North Karnataka. “This sector needs urgent attention as it provides employment to the remote corners of the country.
There is very little sensitivity and knowledge among those who make policies in Delhi. Merely mentioning the word transparency 100 times in a 30-page note does not change the ground reality,” he added.
The guidelines that came into force with immediate effect on November 1, seek to bring in more transparency in the process of allocation and reduce the number of pending allocations.
The major pre-requisites to be considered before allocation of a mine include technical expertise, financial strength and proposed investment, value addition to the end-use project and financial bid as a percentage of royalty. Further, to prevent arbitrary proposals, allocation has been barred for areas that have not been prospected for minerals. Besides, non-notified land also can no longer be allocated.
“State governments have been requested to process all proposals in accordance with these guidelines to facilitate expeditious disposal of mineral concession applications. Nearly 64,000 mining applications in various stages are pending before state governments while another 287 licence execution cases and 2,577 renewal applications are also pending,” a mines ministry official said.
“This sector needs to move on. These guidelines supersede all previous instructions in this regard,” he added.
The guidelines also lay down strict timelines for each step of allocation of mines including environment and forest clearances.
Requirement of multiple clearances, which lead to inordinate delays, have been a major hurdle in attracting fresh investments in the sector even, as increased litigation has resulted in declining output in recent years.
From being the third-largest iron ore exporter in the world behind Australia and Brazil in 2009, India has slipped to a net importer of the key raw material in steel manufacturing, due to bans imposed in states such as Karnataka, Odisha and Goa.
The industry is sceptical of these guidelines.
“There is nothing very new in these guidelines and it is just a bit of clever simplification and consolidation of existing laws,” said the owner of a mining company based in Bellary in North Karnataka. “This sector needs urgent attention as it provides employment to the remote corners of the country.
There is very little sensitivity and knowledge among those who make policies in Delhi. Merely mentioning the word transparency 100 times in a 30-page note does not change the ground reality,” he added.
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