KOLKATA (miningweekly.com) – The Indian Union Cabinet of Ministers on Wednesday approved the National Mineral Exploration Policy (NMEP), paving the way for private and government agencies to bid for at least 100 mineral blocks.
Under the policy, provincial governments would identify prospective mineral blocks to be auctioned for exploration and would invite a second round of bidding once exploration reports were submitted.
The policy was based on a revenue-sharing arrangement between investors and the government. A successful mine lease owner would pay a specified royalty to the state government and an amount equivalent to a percentage of the royalty would be paid to the agency which first conducted the exploratory work at the specific mineral block.
The revenue-sharing could be in the form of a lump sum or an annuity to be paid throughout the period of the mining lease, with transferable rights.
NMEP would be applicable for all minerals, except for coal.
“Through NMEP, the government wants to attract the private sector in exploration, besides involving government agencies like Geological Survey of India and Mineral Exploration Corporation Limited and other notified agencies. States too will play a greater role by referring exploration projects, which could be taken up under the funds available for National Mineral Exploration Trust,” an official statement said.