Project Monitoring Unit

In September, 2024, the Ministry of Mines announced that it will establish a Project Monitoring Unit (PMU) to expedite the operationalization of auctioned mineral and coal mines, addressing concerns of slow progress.

Key Points

Slow Operationalization of Auctioned Mines: Only 50 out of 404 auctioned non-coal mineral blocks have been operationalized since the 2015 auction regime was introduced.
Project Monitoring Unit (PMU) Launch: Mines Secretary announced that the Ministry of Mines will launch a PMU to ensure 24/7 monitoring and quicker operationalization of the 400-500 auctioned mines.
Investment Concerns in Exploration: India's spending on mineral exploration is minimal, with only 1% of the global exploration budget, compared to $2.7 billion by Canada and $2.3 billion by Australia.
Obvious Geological Potential (OGP) Areas: OGP areas, which cover one-fifth of India, have high potential for valuable minerals like gold, copper, and nickel but remain underexplored, with India still relying heavily on imports.
Government's Focus on Exploration: The National Minerals Exploration Trust (NMET) has increased its expenditure on exploration, doubling its budget in the last year and aiming for further growth under the Viksit Bharat programme.
State Governments’ Role: State governments play a crucial role in mine operationalization, and the union ministry encourages reforms, with progress to be measured by the upcoming State Mining Index.
Legislative Appeal: FIMI appealed for legislative measures to stabilize the tax regime following a Supreme Court ruling allowing states to collect past tax dues from mining companies.