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Scientific Mining: National Mineral Policy 2019

In compliance with the directions of the Supreme Court, the Ministry of Mines constituted a committee on 14.08.2017 under the chairmanship of Dr. K Rajeswara Rao to review NMP 2008. The Ministry of Mines accepted the committee Report and invited the comments. Based on the received comments the Ministry of Mines finalized the National Mineral Policy 2019.

Background

  • Minerals are a valuable natural resource being the vital raw material for the core sectors of the economy. Exploration, extraction and management of minerals have to be guided by national goals and perspectives, to be integrated into the overall strategy of the country’s economic development. Impetus will be to promote domestic industry, reduce import dependency, and feed into Make in India initiative.
  • National Mineral Policy 2019 replaces the extant National Mineral Policy 2008 due to Supreme Court judgment dated 02.08.2017 Common Cause v/s Union of India & Others. In a decision on the matter of illegal mining in the state of Odisha, the Supreme Court, besides other issues, had directed that the Centre to revise the National Mineral Policy of 2008, considering it as out dated to deal with present day challenges.
  • The SC emphasised on the needs of encouraging scientific mining through proper survey and exploration in cooperation with other institutions, adopting better mining practices, advancing research and development, and regulating unauthorized activities.

Salient Features of National Mineral Policy 2019

  • The outcomes expected from policy proposals are, an increase in the production of MCDR (Mineral Conservation and Development Rules, 2017) minerals (in value terms) by 200 % in 7 years; and reduce the trade deficit in minerals sector by 50% in 7 years.
  • It aims to ease merger and acquisition of mining entities, attract private sector participation in exploration, allow transfer of mining leases and creation of dedicated mineral corridors.
  • It proposes to grant industry status to mining and boost financing for mining and private sector acquisition of mineral assets abroad.
  • It has introduced “Right of First Refusal” for holders of reconnaissance permit and prospecting license (RP/PL holders) and auctioning in virgin areas for composite RP cum PL cum ML on revenue share basis,” .It also talks of rationalizing reserved areas earmarked for PSUs which have not been used and to put these areas to auction.
  • It focuses on use coastal waterways and inland shipping for evacuation and transportation of minerals and encourages dedicated mineral corridors to facilitate the transportation of minerals.
  • It proposes a long term export import policy for the mineral sector as an incentive for investing in large scale commercial mining activity.
  • It has introduced the concept of Inter-Generational Equity that deals with the well-being of both the present generation and future generations.

Impact

  • As India is gearing up for becoming a 5 trillion $ economy by 2025, National Mineral Policy 2019 lays the framework with respect to mineral utilization and core development in the country.