Coal and Mining Sector

[pib] National Mineral Policy, 2019

Note4students

Mains Paper 2: Governance | Government policies & interventions for development in various sectors & issues arising out of their design & implementation

From UPSC perspective, the following things are important:

Prelims level:  National Mineral Policy, 2008

Mains level: Read the attached story


News

  • The Union Cabinet has approved National Mineral Policy 2019.
  • National Mineral Policy 2019 replaces the extant National Mineral Policy 2008 (“NMP 2008”) which was announced in year 2008.

National Mineral Policy, 2019

Key features

  • 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.
  • 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.
  • It also mentions to make efforts to harmonize taxes, levies & royalty with world benchmarks to help private sector.

Other Features

  • 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.
  • Regarding the role of state in mineral development online public portal with provision for generating triggers at higher level in the event of delay of clearances has been put in place.
  • NMP 2019 aims to attract private investment through incentives while the efforts would be made to maintain a database of mineral resources and tenements under mining tenement systems.
  • The new policy focuses on use 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.

Inter-Generational Equity

  • 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.
  • It also proposes to constitute an inter-ministerial body to institutionalize the mechanism for ensuring sustainable development in mining.
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