In news
Government is coming up with many structural reforms in the mining sector to realise its true potential
Issue
Some of the successful bidders are trying to evade the process of auctions by delaying the production while some have completed the process of auction
Aim of structural reform
- To increase participation of the private sector in mineral exploration.
- Redefine the norms of exploration for auction of mineral blocks to ensure a seamless transition from exploration to production.
Reforms
- The standard of exploration required for auctioning of blocks for prospecting license-cum mining lease and open acreage licensing policy for allocation of mining rights which will give a major boost to the production of minerals in the country will be redefined.
- The Government is fully committed to ensure that the auction of mineral resources of the country is a complete success and it generates revenue and employment for the state governments.
- Apart from generating jobs, reducing dependence on fuel import and stimulating the economic growth.
- The opening of the coal sector to private players will garner hefty capital investment in the country over next 5-7 years.
- FDI caps in the mining and exploration of metal and non-metal ores have been increased to 100% under the automatic route.
- The Geological Survey of India has almost doubled its exploration activity by implementing about 400 mineral exploration projects on various mineral commodities.
India's mining sector
- India is endowed with vast natural resources and the industry has contributed in many ways to the country’s economy like direct contribution to the GDP, indirect contribution through development of downstream industries and employment.
- With industrial development, the government has also shifted its priorities in terms of availability of raw material, managing the country’s economy and natural resources. It is government’s priority to ensure that the regulatory environment is conducive to ease of doing business with simpler, transparent and time-bound procedures for doing business.
Source : PIB
