NEW DELHI: The Lok Sabha today cleared a significant Bill to allow private players in mineral exploration. Only 10 per cent of India’s geological mining potential is currently explored with corresponding rates for South Africa and Australia (comparable mineral potential as India’s) considerably high.
“Today is a remarkable day for mining. The government is unshackling the mineral potential of India to make it self-reliant. The sector contributes 1.75 per cent to India’s GDP as against 7.5 per cent in South Africa and 7 per cent in Australia. We will raise this to 2.5 per cent of the GDP,” said Coal and Mines Minister Pralhad Joshi moving The Mines and Minerals Development and Regulation Amendment Bill 2021 to amend the 1957 law.
Joshi said out of 10 per cent explored mineral potential, only 1.5 per cent had been mined as against 70 to 80 per cent in South Africa and Australia.
“The reason for our low potential is we have not involved the private sector… having advanced technology in exploration. The Bill will also allow mine clearances to be transferred to new owners as in infra projects,” said Joshi, assuring states the Centre “will not take a penny” out of financial benefits that accrue from the Bill.
The government said 143 mines were handed over to states after auctions began five years ago, but only seven were auctioned.
“In March 2020, 334 mines expired and of these, 46 working mines were given back to states for auctions. But only 28 have been auctioned,” said Joshi.
The Bill will enable the government to auction 572 mines allotted years ago starting 1980s but never made functional, having a worth of Rs 27 lakh crore. It mandates lease holders to start production and dispatch of minerals within two years of signing the mining lease and PSUs to start production in five years.