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Tags Current Affairs

Cabinet approves National Mineral Policy 2019

Date: 01 March 2019 Tags: Infrastructure, Commerce & Industry

Union Cabinet chaired by Prime Minister Narendra Modi has approved National Mineral Policy 2019 (NMP 2019). It replaces National Mineral Policy 2008 (NMP 2008).

It is aimed at bringing about more effective regulation to mining sector as well as more sustainable approach while addressing issues of those affected by mining especially tribals. It gives focus on transparency, better regulations and enforcement, balanced growth and sustainability of mining sector.

National Mineral Policy (NMP) 2019

  • Objective: It aims to have more effective, meaningful and implementable policy that brings in further transparency, better regulation and enforcement, balanced social and economic growth as well as sustainable mining practices.
  • It also aims to attract private investment through incentives while the efforts would be made to maintain a database of mineral resources and tenements under mining tenement systems. 

Key Provisions in NMP 2019 to give boost to mining sector

  • Introduces Right of First Refusal for Reconnaissance Permit(RP)/Prospecting License(PL) holders.
  • Encourages private sector to take up exploration.
  • Proposes auctioning of virgin areas for composite RP cum PL cum ML on revenue share basis,
  • Encourages merger and acquisition of mining entities.
  • Proposes transfers of mining leases and creation of dedicated mineral corridors to boost private sector mining areas.
  • It also includes focus on make in India initiative and Gender sensitivity in terms of the vision.

Key Features of NMP 2019

  • Grant status of industry to mining activity to boost financing of mining for private sector and for acquisitions of mineral assets in other countries by private sector
  • Proposes long term import export policy for mineral to help private sector in better planning and stability in business
  • Proposes long term export import policy for mineral sector to provide stability and as an incentive for investing in large scale commercial mining activity.
  • Proposes rationalization of reserved areas given to PSUs which have not been used and put these areas to auction, which will give more opportunity to private sector for participation.
  • Efforts need to be made to harmonize taxes, levies & royalty with world benchmarks to help private sector.
  • Introduces concept of Inter-Generational Equity that deals with well-being not only of present generation but also of the generations to come.
  • Proposes to constitute inter-ministerial body to institutionalize mechanism for ensuring sustainable development in mining.
  • Focusses on use coastal waterways and inland shipping for evacuation and transportation of minerals and encourages dedicated mineral corridors to facilitate the transportation of minerals.
  • Utilization of district mineral fund for equitable development of project affected persons and areas.
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