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| Last Updated:16/08/2016

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Mines ministry to seek Cabinet’s approval for IBM’s restructuring; M. Raju to head GSI

 

Date | Aug 16, 2016:

In an attempt to make the Indian Bureau of Mines (IBM) come up to speed and become technically proficient in the backdrop of the Mines and Minerals (Development and Regulation) Act (MMDR), the National Democratic Alliance (NDA) government is mulling to restructure the Bureau.

 

IBM, set up in 1948, is tasked with the conservation and rational use of mineral resources and works under the ministry of mines. The mines ministry may shortly seek the Cabinet’s approval for the IBM’s restructuring.

 

The NDA government amended the MMDR Act in January 2015 to grant mineral concessions through auctions to bring transparency and remove discretion. However, the process of auctioning mines has been slow.

 

“With the new Act coming in place, the role of IBM also needs to be strengthened. Currently, the organisation is focused towards administration, but it needs to be made technically sound and competitive. We need to increase more technical posts in the IBM to handle several works related to aerial survey, remote sensing, star-rating of mines and other related works,” said a senior government official requesting anonymity.

 

This comes in the backdrop of India’s mines minister Piyush Goyal stating if the country’s mineral production can increase by 30-35% per year, it will contribute an additional one percentage point to the country’s gross domestic product in the next two to three years from the existing share of 2-2.5%.

 

The official quoted above added the mines ministry is currently in the process of preparing a draft Cabinet note for the restructuring which will be soon be circulated for inter-ministerial discussions.

 

In another development, the mines ministry will also seek the Cabinet’s approval for appointing M. Raju, additional director general, Geological Survey of India (GSI), as the head of the organisation which is expected to play an important role in helping India achieve resource security.

 

After Harbans Singh, former director general (DG) of GSI superannuated on 31 May, Raju has been holding the charge of DG.

 

GSI is engaged in baseline exploration work and data collection. It is also involved in natural resource assessment and is planning an aero-physical survey, which is aimed at bringing deep-seated minerals into production.

 

IBM on its part will have to play a crucial role to increase India’s mineral production. It is currently engaged in preparing minerals maps and a national mineral inventory. IBM is also entrusted with the scrutiny and approval of mining plans, evolving technologies for upgradation of low grade ores and their utilisation.

 

InfraCircle on 26 July reported about IBM issuing instructions for quick and transparent disposal of mining plans and schemes within 45 days.

 

“IBM is planning to set up few remote sensing laboratories via which it can monitor the ongoing activities taking place in a mine. It is tough to do it physically. The organisation needs technically qualified people who can handle new technologies so that any violation in the mine area can be reported to the states for necessary action to be taken,” said a second government official who also didn’t want to be identified.

 

India’s mineral production for financial year 2015-16 increased by 9% to 495 million tonne. However, the overall growth in terms of value decelerated by 11% to Rs.39,767.3 crore during the same period.

 

Experts believe that IBM’s restructuring is the need of the hour.

 

“With mineral production going up, we need to have in place a better information technology system, drones, remote sensing and global positioning system. And for all this, competent technical manpower will be required by IBM in the days to come,” said Dipesh Dipu, partner at Jenissi Management Consultants, a Hyderabad-based energy and resources sector consulting firm.

 

During the last two years, the Bharatiya Janata Party-led government has taken various measures to boost mining including allowing 100% foreign direct investment in the mineral sector.

 

 

(Source: http://www.vccircle.com/)