The Centre has proposed a slew of measures to boost private investment in the mining sector that include tax holidays for exploration and prospecting in remote areas, simplification of present auction procedure and a uniform rehabilitation and resettlement policy to be implemented across the country.
It is also planning to strengthen ease of doing business, solution for the right of way issues, a special mechanism for speedy regulatory and environmental clearances and land acquisition, according to an official from the mining ministry.
Furthermore, the Centre is mulling giving the right of first refusal to the private sector to support its efforts in exploration. It is also actively involved in a dialogue with states to ensure a uniform tax regime which will be investor-friendly.
These proposals are expected to be incorporated in the new National Mineral Policy (NMP) which will be put in place by end of December as per the Supreme Court order.
The official told DNA Money, “The policy is being formulated by a high-level committee headed by the additional secretary Rajeshwar Rao. Views have been sought from all stakeholders so that the policy will be sent for the Cabinet approval, and thereafter it will be introduced by the end of December.’’
Mining industry players have stressed on the need to focus on exploration as without adequate exploration the country cannot develop mineral resources. The industry has sought an efficient regulatory mechanism as it fears without it even a system based on auction will degenerate into corruption.
DIGGING DEEPER
- These proposals are expected to be incorporated in the new National Mineral Policy
- They will be put in place by end of December as per the Supreme Court order
