There is also a proposal to develop a comprehensive and broad-based mineral index for determination of levies and taxes on the lines of recently launched National Coal Index. The objective of these changes is to attract more investments in the sector, including from foreign players.
A clutch of proposals to reform the rules governing non-coal minerals will likely come under the consideration of the Cabinet soon.
According to a draft Cabinet note prepared by the mines ministry, introduction of mining licences that offers with certainty tenure, ranging from the exploration to production stages, and removal of the distinction between captive and non-captive mines will be among the salient features of the new regime. The changes will also pave the way for re-auction of some 500 odd leases that are embroiled in legal disputes and legacy issues.
There is also a proposal to develop a comprehensive and broad-based mineral index for determination of levies and taxes on the lines of recently launched National Coal Index. The objective of these changes is to attract more investments in the sector, including from foreign players.
“As regards the policy announcements under the Atmanirbhar Bharat Abhiyan, a comprehensive Cabinet note containing all proposals is already under submission to higher authority and on approval, would be put up for the cabinet,” the mines ministry said in the note, reviewed by FE.
Coal secretary Anil Kumar Jain, who also holds the charge of the mines secretary, said in Kolkata on Friday the roll-out of the reforms in the mining sector would take 6-8 weeks.
The first set of coal mines under the commercial mining policy has been auctioned off recently — most winning bidders offered handsome amounts as revenue share to the government, in some cases 40-40%. Jain said, “We expect commercialisation of mines to bring competitiveness and a level-playing field between PSUs and private players.” In the next 5 to 6 years, the mining sector is said to increase direct employment by 7 lakh and indirect employment by over 20 lakh, Jain said.
The proposal to introduce seamless exploration-cum-mining-cum-production regime of virgin areas had been among the long-pending wish-lists of the mining industry.
