Kolkata | August 13, 2015:
Mining royalty: It is estimated that the Trust will garner around Rs 500 crore annually through a mandatory payment equivalent of 2 per cent of the relevant royalty on all extracted minerals
The Centre is considering financial support to the States carrying out minerals exploration. The support will be provided as a reimbursement of a significant part of the exploration cost from the proposed National Mineral Exploration Trust (NMET).
Notification
The Union Ministry of Mines plans to issue the notification for formation of the NMET by next month. The Ministry of Law is vetting the draft notification before its formal issuance by September.
According to sources, the Ministry of Mines is close to finalising the modalities for funding a State’s exploration work. The MMDR Amendment Act, 2015 made way for formation of the NMET.
It is estimated that the Trust will garner around ₹500 crore annually through a mandatory payment equivalent of 2 per cent of the relevant royalty on all extracted minerals, including coal and uranium, by each of mine leaseholder or holder of a prospecting licence-cum-mining lease. The States will collect this additional payment by the miners and pass it on to the NMET.
Opening up
Sources said the Centre and the mining States would jointly administer the Trust. While the 12-member governing body of NMET, headed by Union Minister of Mines, will have ministerial representation from six States, the 13-member executive committee will have bureaucratic representation from four States.
Exploration of minerals, so far the exclusive preserve of Geological Survey of India and Mineral Exploration Corporation Ltd, was recently thrown open to State PSUs as well as NMDC, SAIL, MOIL and KIOCL.
(Source: http://www.thehindubusinessline.com/)