Sept 08, 2016:
As part of National Democratic Alliance (NDA) government’s effort to leverage public sector undertakings (PSUs) to explore domestic mineral reserves, India’s largest power generation utility NTPC Ltd may be roped in by the ministry of mines.
The other state-run firms, which may be handed over potential blocks for exploration, include Steel Authority of India Ltd (SAIL), National Aluminium Co. Ltd (Nalco), Hindustan Copper Ltd (HCL), and National Mineral Development Corp. Ltd (NMDC), said government officials.
“In an important meeting on 3 September to discuss the National Mineral Exploration Policy (NMEP), it has been decided that the exploration work will be given to these state-run firms,” said a senior government official requesting anonymity.
InfraCircle reported on Wednesday about the Geological Survey of India, the Mineral Exploration Corp. Ltd and the Central Mine Planning and Design Institute Ltd (CMPDIL) being roped in for the exercise.
Currently, mining contributes around 2-2.5% to India’s gross domestic product (GDP) with the government projecting a GDP growth of 7-7.75% for the current financial year. The government wants to increase the share of mining sector in the country’s GDP by one percentage point over the next three to four years.
CMPDIL, which reports to the ministry of coal, already provides consultancy in coal and mineral exploration in India and abroad.
A second government official, who also did not want to be named, confirmed the development.
The Narendra Modi-led NDA government, on 29 June, approved NMEP, allowing private companies to explore the country’s mineral wealth. As per its provisions, mineral blocks containing lead, zinc, gold, silver, diamonds and iron ore can be handed over to public and private agencies for reconnaissance or early-stage exploration. These blocks are to be awarded on a revenue-sharing basis in case exploration efforts lead to discovery of resources which can be auctioned.
Queries emailed to the spokespersons of the ministry of mines, NTPC, SAIL, NMDC, Nalco and HCL on 7 September remained unanswered.
India’s power, coal, renewable energy and mines minister Piyush Goyal didn’t respond to phone calls or to a text message on his cell phone. Queries emailed to him on 6 September also remained unanswered.
Experts believe that mineral exploration via the PSU route is a good idea.
“As there will be no immediate returns on exploration works, not too many private sector participants would like to get into it. Hence, engaging state-run firms may produce better results,” said V.S. Jain, former SAIL chairman.
India’s mineral production during the first quarter of the current financial year went up 14% to 138.53 million tonne (MT) compared with 121.11 MT during the year-ago period.
While India’s mineral production for financial year 2015-16 increased by 9% to 495 MT, the country failed to achieve mineral exploration targets for financial year 2015-16 in terms of drilling.
(Source: http://www.vccircle.com/)
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