India’s ‘mining through auction’ policy gets a thumbs up

Sai Nikesh | The Dollar Business Indian mining sector was hailed upon by the global participants at an annual global event on mining, held at Cape Town, South Africa. The Indian delegation led by the Indian Union Minister for Mines and Steel Narendra Singh Tomar was in South Africa for MINING INDABA 2015, to highlight the scope being provided by the Indian mining sector for foreign investments. Speaking at the event attended by more than 10,000 people across the globe, the Indian Minister highlighted the recent amendments made to the Mining Laws and Regulations in India. Stressing upon the mining process through auction route, the Minister informed that the recent amendments would bring transparency in allocation of minerals. The Minister also informed that through the recent amendments, the period of mining lease has been extended to a period of 50 years from the existing 30 years period. He further informed the participants that a National Mineral Exploration Trust has been set up to enhance mineral exploration in the country. The Minister said that the Indian government has delegated powers to the State governments, with an aim to overcome the delays in getting approvals and clearances. He also stated that the District Mineral Fund has been created to benefit the society affected by mineral operations.   Thirty-one additional minerals have been delegated to the provincial governments, thus enhancing the list of such minerals to 54, the Minister added. While calling upon the mining giants like Vedanta to help create brand India across the globe, the Minister hoped that the Indian government’s initiatives will bring sustainable inclusive growth in the mining sector. The Minister asked the participants to explore opportunities through exchange visits, by promoting joint ventures and cooperating in upgradation of technology. Responding to the Minister’s statements, the participants said the Amendments made to the Indian mining regulations would further boost investments and ensure the growth of the sector. They also appreciated the reforms saying India is the only country in the world to allow mining through auction route. Here, it has to be noted that, in a recent announcement, the Indian government has called the States to expedite the process of mine exploration in order to make them ready for auction at the earliest. In the light of this background, latest response to the mining sector at the global meet will boost the hope of Indian government to bring in more private players under Make in India Policy.  

This article was published on February 10, 2015.