NEW DELHI | Jun 29, 2016: The government on Wednesday approved the National Mineral Exploration Policy (NMEP) with an eye on raising India's mining potential and attracting private investment by bidding out mineral blocks through a transparent e-auction process.

The policy also provides for boosting state revenues through a share of revenue from successful miners and paves the way for auction of about 100 prospective mineral blocks. The new policy also allows space to state-run Geological Survey of India, Mineral Exploration Corporation and other such government agencies.

Under the policy, reasonable mineral blocks for regional exploration will be identified by state governments for auctioning. Once the explorer submits the after exploration, the state government will auction the mining lease for that block.

The mining lease owner will then pay certain royalty to the state government. The policy envisages an amount equivalent to certain percentage of this royalty to be paid to the private explorer by the mining lease owner.

The revenue-sharing could be either in the form of a lumpsum or an annuity to be paid throughout the period of mining lease, with transferable rights.

To encourage mineral exploration in the country, the mines ministry has already notified the National Mineral Exploration Trust (NMET). The mining lease owners have started paying an amount — equivalent to 2per cent of the royalty paid to state governments — to this trust.

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

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