NEW DELHI | May 11, 2016: States have so far deposited a total of Rs 168.38 crore in NMET, which will utilise the funds primarily for the purpose of regional and detailed mineral exploration through special studies and projects.

National Mineral Exploration Trust (NMET) has started receiving payments of a sum equivalent to 2 per cent of the royalty paid in terms of minerals listed in the Second Schedule as per provisions of the MMDR Amendment Act 2015, Minister of State for Mines Vishnu Deo Sai said in a written reply to Rajya Sabha.

"NMET contribution is applicable with effect from January 12, 2015. As on April 30, 2016, a total Rs 168.38 crore has been received by NMET from States," he added.

The Trust will utilise the funds primarily for the purpose of regional and detailed mineral exploration through special studies and projects to identify, explore, extract, beneficiate and refine deep seated or concealed mineral deposits.

It will also aid in facilitating ground as well as aerial geophysical survey and geochemical survey in obvious geological potential areas and organise capacity building of personnel engaged in exploration in Centre and States.

The main beneficiaries of NMET fund are state governments as the amount is to be utilised exclusively for the purpose of exploration, which aims at identification of mineral blocks for grant of mineral concessions by States, the minister said.

Replying to a separate query, Sai said mineral exploration is a high risk and high investment dynamic process.

It requires sound and comprehensive strategy implemented in a coordinated, systematic and consistent manner, he said.

Private investment and state-of-the-art technology are essential and generation and dissemination of pre-competitive base-line geoscience data is of paramount importance for effective exploration, he added.

Geological Survey of India, Mineral Exploration Corporation, State Directorates of Geology and Mining, State/Central Undertakings and private sector companies are engaged in the exploration of mineral deposits, Sai said.

(Source: http://economictimes.indiatimes.com/)