New Mineral Policy, 2019
- 01 Mar 2019
- 4 min read
The Union Cabinet has approved the National Mineral Policy, 2019 (NMP 2019).
- The new mineral policy focuses on transparency, better regulations & enforcement, balanced growth & sustainability.
- The aim of National Mineral Policy 2019 is to have a more effective, meaningful and implementable policy that brings in further transparency, better regulation, and enforcement, balanced social and economic growth as well as sustainable mining practices.
- The National Mineral Policy 2019 includes provisions which will give a boost to the mining sector such as
- encouraging the private sector to take up exploration,
- auctioning in virgin areas for composite RP cum PL cum ML (reconnaissance permit cum Prospective Licensing and Mining Lease) on a revenue share basis
- encouragement of merger and acquisition of mining entities
- transfer of mining leases and creation of dedicated mineral corridors to boost private sector mining areas.
- The 2019 Policy proposes to grant the status of the industry to mining activity to boost the financing of mining for the private sector and for acquisitions of mineral assets in other countries by the private sector
- It also mentions that Long term import-export policy for mineral will help the private sector in better planning and stability in business
- The Policy also mentions rationalize reserved areas given to PSUs which have not been used and to put these areas to auction, which will give more opportunity to the private sector for participation
- The Policy also mentions making efforts to harmonize taxes, levies & royalty with world benchmarks to help the private sector
- Among the changes introduced in the National Mineral Policy, 2019 include the focus on "make in India" initiative and Gender sensitivity in terms of the vision.
- NMP 2019 aims to attract private investment through incentives while the efforts would be made to maintain a database of mineral resources
- The new policy focusses on the use of coastal waterways and inland shipping for evacuation and transportation of minerals and encourages dedicated mineral corridors to facilitate the transportation of minerals.
- The utilization of the district mineral fund for equitable development of project affected persons and areas.
- NMP 2019 proposes a long term export-import policy for the mineral sector to provide stability and as an incentive for investing in large scale commercial mining activity.
- The 2019 Policy also introduces the concept of Inter-Generational Equity that deals with the well-being not only of the present generation but also of the generations to come and also proposes to constitute an inter-ministerial body to institutionalize the mechanism for ensuring sustainable development in mining.
- The New National Mineral Policy will ensure more effective regulation.
- It will lead to sustainable mining sector development in future while addressing the issues of project affected persons especially those residing in tribal areas.