The Union Cabinet has approved the National Mineral Policy of 2019. National Mineral Policy 2019 replaces the extant National Mineral Policy 2008 (NMP 2008) which was announced in year 2008.
Objective: 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 2019 Policy proposes to grant status of industry to mining activity to boost financing of mining for private sector and for acquisitions of mineral assets in other countries by private sector.
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 National Mineral Policy 2019 includes
introduction of Right of First Refusal for RP/PL holders,
encouraging the private sector to take up exploration,
encouragement of merger and acquisition of mining entities and
transfer of mining leases and creation of dedicated mineral corridors to boost private sector mining areas.
It also mentions that long term import export policy for mineral will help 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 private sector for participation
The Policy also mentions to make efforts to harmonize taxes, levies & royalty with world benchmarks to help private sector
Benefits: 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
