Lok Sabha Question No. 2537 (UNSTARRED), answered on 2016-12-01
Subject: Mineral Exploration Permits to Private Sector Players
Ministry: MINES
Asked by: K. GOPAL

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2537 TO BE ANSWERED ON THE 1 st  DECEMBER, 2016

## MINERAL EXPLORATION PERMITS TO PRIVATE SECTOR PLAYERS

## 2537. DR. K. GOPAL:

Will the Minister of MINES be pleased to state:

- (a) whether the Government has approved the auctioning exploration permits to private sector players on a revenue sharing basis starting with 100 identified mineral blocks over the next few months, if so, the details thereof;
- (b) whether the progress on exploration has been quite poor with just 10 per cent of a potential 8 lakh square kilometers being explored so far, if so, the facts thereof and the reasons therefor;
- (c) whether new mining laws require all blocks with identified minor reserves to be auctioned instead of allotted administratively, if so, the details thereof; and
- (d) whether there is no guarantee for those who explored for the minerals would be able to exploit the blocks which were found viable for mining, if so, the details thereof and the reasons therefor?

## A  N   S  W  E  R

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

(a): The  National Mineral Exploration Policy-2016 (NMEP),  approved  by  the Government, proposes incentivization of explorers in the way of providing costs for the operations carried out during mineral exploration and sharing of revenue in case of  successful  auction  of  mining  blocks.  100  reasonable  areas/blocks  for  regional exploration has been identified by the Geological Survey of India (GSI). Out of these about 20 blocks of gold, copper, zinc, basemetals, rare earth elements, tungsten, tin, lithium, platinum group of elements, kimberlite, copper, chromium, nickel, cobalt and vanadium    in  the  States  of  Gujarat,  Rajasthan,  Odisha,  Karnataka,  Kerala,  Tamil Nadu, Maharashtra, Chhattisgarh, Haryana, etc.have been identified for exploration by private agencies.

(b): GSI has covered the entire 31.4 lakh sq km of the country's mappable area by systematic  geological  mapping  on  1:50,000  scale  on  the  basis  of  which  the geological  potential  area  has  been  identified.  GSI  has  enhanced  efforts  towards unravelling the concealed subsurface deposits, and as a pre-requisite to this, it has launched  its  National  Geochemical  Mapping  (NGCM)  and  National  Geophysical Mapping (NGPM) programs.  Of the identified geological potential area of about 8 lakh sq. km., GSI has covered 3.17 lakh sq. km. and 1.9 lakh sq. km. by NGCM and NGPM  respectively.  Private  and  public  mineral  exploration  agencies  carry  out mineral exploration programmes based on the above baseline data.

(c): The Mines and Minerals (Development and Regulation) Act, 1957 [MMDR] was amended through the MMDR Amendment Act, 2015 which is deemed to have come into force w.e.f. 12.01.2015. One of the amendment provision stipulates that mineral concessions  shall  be  granted  through  auction  by  competitive  bidding  except  for mineral  concessions  proposed  to  be  granted  through  reservation  to  Government Companies  under  Section  17A.  Allocation  of  mineral  concessions  before  the amendment was done on first-come-first-served basis. Section 15 of the MMDR Act empowers  the  State  Government  to  frame  rules  to  regulate  the  grant  of  mineral concessions  for  minor  mineral  and  for  purposes  connected  therewith.  As  such, allocation of mineral concessions for minor minerals comes under the legislative and administrative jurisdiction of State Government.

(d):  The  Mines and Minerals (Development and Regulation) Amendment Act, 2015 (MMDR Amendment Act, 2015) has two specific provisions for mineral exploration viz.  Non-exclusive  Reconnaissance  Permit  [NERP]  and  Prospecting  License-cumMining  Lease  [PL-cum-ML]  through  which  private  sector  can  participate  in  mineral exploration. However, the holder of NERP shall not be entitled to any claim for grant of Prospecting Licence-cum-Mining Lease (PL-cum-ML) or Mining Lease (ML).

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