Page 2 - The Mineral Development and Regulation Framework in India (English Version)
P. 2
Discussion Paper
The Mines and Minerals (Regulation and The Hoda Committee studied the various
Development) Act, 1957 was enacted by reports prepared and submitted by study groups
the Parliament for the regulation of mines and and in-house committees set up by various Ministries
development of minerals under the control of the from time to time on the issues brought before the
Union. The Act has been amended in 1972, 1986, Committee. The Committee gave consideration to
1994, and 1999 in keeping with changes in the policy the mineral policies of the States as presented by
on mineral development. the State Governments, especially to the differing
perceptions of mineral-rich and non-mineral-rich
The first National Mineral Policy (NMP) for states. The Committee also carried out a comparative
non-coal, non-fuel minerals was enunciated by analysis of the mineral policies and statutes of other
the Government in 1993 for liberalization of the major mineral producing countries in the world such
mining sector. The NMP 1993, aimed at encouraging as Australia, Canada, Chile, and South Africa.
the flow of private investment and introduction
of state-of-the-art technology in exploration and The Committee made detailed recommendations
mining. Subsequently, in the Mid-Term Appraisal of on all of its terms of reference in December 2006, the
the Tenth Five-Year Plan, it was however observed main thrust of which was to the effect that:
that the results of the Mineral Policy had not been
encouraging. The main factors responsible for this The NMP would have to be revised to attune
were identified as procedural delays in the processing it to the current realities in the world economy
of applications for mineral concessions and the in which barriers to international trade and
absence of adequate infrastructure in mining areas. investment flows have been rapidly dismantled.
To go into the whole gamut of issues relating to
the development of the mineral sector and suggest The policy would have to provide for the mining
measures for improving the investment climate, the laws and practices to evolve in order to adapt to
Mid-Term Appraisal proposed the establishment of international best practices.
a High Level Committee. Accordingly, the Planning
Commission constituted a Committee in September While the Geological Survey of India (GSI) would
2005 under the Chairmanship of Shri Anwarul Hoda, need to be strengthened to enlarge their activities
Member, Planning Commission. using state-of-the-art techniques, much of the
future investment needed for exploration and
mining would have to come from the private sector.
Figure 1: Exploration budgets by Region, 2004 - 2008 Figure 2: Investment in exploration by select countries
Source: Metals Economics Group 2009. World Exploration Trends (Metals
Economics Group, Halifax) Source: Ministry of Mines 2011. Unlocking the Potential of the Indian Minerals
Sector, Strategy paper for Ministry of Mines
2 JANUARY 2015
The Mines and Minerals (Regulation and The Hoda Committee studied the various
Development) Act, 1957 was enacted by reports prepared and submitted by study groups
the Parliament for the regulation of mines and and in-house committees set up by various Ministries
development of minerals under the control of the from time to time on the issues brought before the
Union. The Act has been amended in 1972, 1986, Committee. The Committee gave consideration to
1994, and 1999 in keeping with changes in the policy the mineral policies of the States as presented by
on mineral development. the State Governments, especially to the differing
perceptions of mineral-rich and non-mineral-rich
The first National Mineral Policy (NMP) for states. The Committee also carried out a comparative
non-coal, non-fuel minerals was enunciated by analysis of the mineral policies and statutes of other
the Government in 1993 for liberalization of the major mineral producing countries in the world such
mining sector. The NMP 1993, aimed at encouraging as Australia, Canada, Chile, and South Africa.
the flow of private investment and introduction
of state-of-the-art technology in exploration and The Committee made detailed recommendations
mining. Subsequently, in the Mid-Term Appraisal of on all of its terms of reference in December 2006, the
the Tenth Five-Year Plan, it was however observed main thrust of which was to the effect that:
that the results of the Mineral Policy had not been
encouraging. The main factors responsible for this The NMP would have to be revised to attune
were identified as procedural delays in the processing it to the current realities in the world economy
of applications for mineral concessions and the in which barriers to international trade and
absence of adequate infrastructure in mining areas. investment flows have been rapidly dismantled.
To go into the whole gamut of issues relating to
the development of the mineral sector and suggest The policy would have to provide for the mining
measures for improving the investment climate, the laws and practices to evolve in order to adapt to
Mid-Term Appraisal proposed the establishment of international best practices.
a High Level Committee. Accordingly, the Planning
Commission constituted a Committee in September While the Geological Survey of India (GSI) would
2005 under the Chairmanship of Shri Anwarul Hoda, need to be strengthened to enlarge their activities
Member, Planning Commission. using state-of-the-art techniques, much of the
future investment needed for exploration and
mining would have to come from the private sector.
Figure 1: Exploration budgets by Region, 2004 - 2008 Figure 2: Investment in exploration by select countries
Source: Metals Economics Group 2009. World Exploration Trends (Metals
Economics Group, Halifax) Source: Ministry of Mines 2011. Unlocking the Potential of the Indian Minerals
Sector, Strategy paper for Ministry of Mines
2 JANUARY 2015
