National Mineral Policy
Why In News?
The Union Cabinet approved the National Mineral Policy 2019that is aimed at bringing about more effective regulation to the sector as well as a more sustainable approach while addressing the issues of those affected by mining.
Benefits of the Policy:
- The New National Mineral Policy will ensure more effective regulation.
- It will lead to sustainable mining sector development in future while addressing the issues of project affected persons especially those residing in tribal areas.
Objective of the Policy:
The aim of National Mineral Policy 2019 is to have a 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.
Details of the Policy:
The National Mineral Policy 2019 includes provisions which will give boost to mining sector such as
- Introduction of Right of First Refusal for RP/PL holders
- Encouraging the private sector to take up exploration
- Auctioning in virgin areas for composite RP cum PL cum ML on revenue share basis
- Encouragement of merger and acquisition of mining entities and
- Transfer of mining leases and creation of dedicated mineral corridors to boost private sector mining areas.
- The 2019 Policy proposes to 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.
- It also mentions that Long term import export policy for mineral will help private sector in better planning and stability in business.
- The Policy also mentions rationalize reserved areas given to PSUs which have not been used and to put these areas to auction, which will give more opportunity to private sector for participation.
- The Policy also mentions to make efforts to harmonize taxes, levies & royalty with world benchmarks to help private sector.