Friday, March 14, 2008

New Mineral Policy

The National Mineral Policy (NMP) 2008, approved by the Cabinet last night, will reduce time delays in disposing off mining applications, boost FDI and "protect risk capital by providing automatic minning rights to miners".
The Cabinet aproved the policy after factoring in the recommendations by the high-level committee and other policy authorities at state level. Delays in ensuring mining leases is believed to be a key reason behind meagre investments in the sector, which the new policy aims to address.

He pointed out that the mineral-rich states of Orissa, Chhattisgarh, Jharkhand and Orissa would be given little more than a year to decide on the merit of the mining lease applications. If these states remain undecided by that period, the applications would be decided the Mining Tribunals, Minister of State for Mines T Subbarami Reddy added.

The Cabinet has also approved setting up of Mining Administrative Appellate Tribunal (MAAT), within six months. The minning states meanwhile will get higher royalty. The status of their demand for ad-valorem based royalty structure and share of export levy is unclear.

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