Lok Sabha Question No. 4657 (UNSTARRED), answered on 2017-03-30
Subject: Exploitation of Minerals
Ministry: MINES
Asked by: P.R. SUNDARAM

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO.4657 TO BE ANSWERED ON 30 TH  MARCH, 2017 'EXPLOITATION OF MINERALS'

## 4657: SHRI P. R. SUNDARAM:

Will the Minister of MINES be pleased to state:

- (a) whether the Union Government has devised new initiatives and policies for the overall development  and  exploitation  of  mineral  wealth  in  the  country  and  if  so,  the  details thereof;
- (b) the profits earned and losses suffered by various mining companies during the last three years and the current year;
- (c) whether the Government has chalked out any strategy to disinvest its shares in certain loss making Public Sector Undertakings (PSUs) and also acquire some of them by profit making PSUs and if so, the details thereof; and

(d) the role of States in the proper exploitation of mineral wealth in the country?

## ANSWER

## THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  FOR  POWER,  COAL, NEW & RENEWABLE ENERGY AND MINES (SHRI PIYUSH GOYAL)

(a):  The  Mines  and  Minerals  (Development  and  Regulation)  ( MMDR )  Act,  1957  was amended through the MMDR Amendment Act, 2015 which is deemed to have come into force with effect from 12.1.2015.  The following new initiatives and policies for the overall development and exploitation of mineral wealth in the country have been introduced through the MMDR Amendment Act, 2015:

- (i) grant of mineral concessions through auction by competitive bidding which is a nondiscriminatory and transparent method  and one which provides to the State Government a fair share of revenue.
- (ii) establishment of the National Mineral Exploration Trust for the purposes of regional and  detailed  exploration  in  the  country.  The  Ministry  of  Mines  has  notified  the National  Mineral  Exploration  Policy,  2016  on  19.07.2016,  which  lays  emphasis  on accelerating mineral exploration in the country and, inter alia, also provides for:
- a. sharing of baseline geo-scientific data free of cost in public domain as a public good;
- b. aero-geophysical  survey  of  the  country  in  a  mission  mode,  initially  in  the obvious  geological  potential  (OGP)  area  of  about  8.0  lac  sq.  kms  and
- subsequently in the rest of the areas. A pilot project over OGP area of about 2.06 lakh sq. km. has been initiated.
- c. Incentive schemes  for  attracting private sector participation in regional mineral exploration.

(b):  The  details  of  profit  earned  and  losses  suffered  by  the  mining  companies  are  not maintained centrally. However, on the basis of information received from Hindustan Copper Limited  (HCL)  and  National  Aluminium  Company  Limited  (NALCO),  which  are  PSUs under the administrative control of Ministry of Mines the details of profit earned and losses suffered during the last three years including current year is provided below:

| Name of Company   | 2013-14                           | 2014-15                           | 2015-16                           | 2016-17 up to Q3                  |
|-------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
|                   | Net Profit after Tax in Rs. Crore | Net Profit after Tax in Rs. Crore | Net Profit after Tax in Rs. Crore | Net Profit after Tax in Rs. Crore |
| NALCO             | 642                               | 1,322                             | 731                               | 400                               |
| HCL               | 286.42                            | 67.60                             | 43.56                             | 21.23                             |

- (c):  Government's  holding  in  HCL  is  82.95%.  As  per  guidelines  issued  by  Securities Exchange Board of India, it is mandatory for all profit earning and listed CPSEs to have a minimum of 25% public holding by 21.08.2017. In this regard,  Department of  Investment and  Public  Asset  Management has  obtained  the  approval  of  CCEA  in  its  meeting  held  on 13.05.2015  to  divest  15%  equity  in  HCL  to  meet  the  SEBI  guidelines.  With  regard  to NALCO, it is informed that the Government is considering disinvestment of 10% of shares.
- (d):  The State Governments are the owner of the minerals and grant mineral concessions in accordance with the provisions of the MMDR Act, 1957 and the Rules made thereunder. The State  Governments are also responsible for enforcing the regulation of mines and control of illegal mining.

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