Lok Sabha Question No. 145 (STARRED), answered on 2022-07-27
Subject: Setting up of Mineral and Metal Based Industrial Units
Ministry: COMMERCE AND INDUSTRY
Asked by: Jual Oram

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA

## STARRED QUESTION NO. 145. TO BE ANSWERED ON WEDNESDAY, THE 27 TH  JULY, 2022.

## SETTING UP OF MINERAL AND METAL BASED INDUSTRIAL UNITS

## *145. SHRI JUAL ORAM:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

(a) whether the Government has any proposal to set up mineral and metal based industrial units;

(b) if so, the names of the States where such industrial units are proposed to be set up;

(c) whether it is a fact that all the infrastructural facilities are available in Odisha to set up mineral and metal based units; and

- (d) if so, the steps taken by the Government for setting up such units in Odisha?

## ANSWER वाणिज्य  एवं उद्योग मंत्री (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL)

A Statement is laid on the Table of the House.

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## (a) to (d):

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 145 FOR ANSWER ON 27 TH  JULY, 2022.

- (a) to (d): Government  promotes  industrialization  process  in  country  through various  schemes/initiatives  such  as  Make  in  India,  Start  Up  India, GatiShakti,  Industrial  Corridors,  Production  Linked  Incentive  Scheme (PLI), Promoting  Ease  of Doing  Business (EoDB)  and  reducing compliance  burden,  National  Single  Window  System  (NSWS),  One District  One Product (ODOP),GIS enabled Land Bank, Foreign Direct Investment (FDI) Policy Reforms, Project Monitoring Group to remove bottlenecks  in  setting  up  of  major  infrastructure  projects  and  Special Packages for North Eastern and Himalayan Regions, etc.

During last seven years, the Government has introduced key structural reforms  to  open  up  the  mineral  sector  to  ensure  its  contribution  in achieving  the  national  policy  goals.  Through  the  amendment  dated 12.01.2015 in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957) provision for grant of mineral concessions through e-auction to bring in greater transparency and remove discretion at all levels in grant of mineral concessions has been introduced. The method of auction also ensures that the State Governments gets the revenue accruing from the auction process. So far, 190 mineral blocks have been successfully auctioned in the country. Out of these, 38 mines have commenced production.

A  major  amendment  was  carried  out  in  the  Act  through  the  MMDR (Amendment) Act, 2021 with effect from 28.03.2021. Through the said amendment, the distinction between captive and merchant mines have been  removed  by  providing  for  auction  of  mines  in  future  without restriction of captive use of minerals and allowing existing captive mines including captive coal mines to sell up to 50% of the minerals produced after meeting the requirement of linked plants to ensure optimal mining of mineral resources and specifying the additional amount to be charged on such sale.

In order to incentivize early operationalization of mines, provision has been made in the Mineral (Auction) Rules, 2015, for providing incentive for production & dispatch earlier than the scheduled date of commencement of production (Lessee shall pay only 50% of the auction premium quoted).

Various  amendments  to  the  MMDR  Act  and  subordinate  legislations have been carried out since 2015 with the objective of increasing mineral production and availability of minerals to the downstream industries.

National Aluminium Company Limited (NALCO) a Schedule 'A' Navratna CPSE having its registered office at Bhubaneswar is one of the largest integrated Bauxite-Alumina Aluminium-Power Complex in the Country. The  Company  has  been  operating  its  captive  Panchpatmali  Bauxite Mines for the pit head Alumina refinery at Damanjodi, in the District of

Koraput in  Odisha and Aluminium Smelter &  Captive  Power  Plant at Angul. The Company has its fully mechanized open cast Bauxite Mines. NALCO has formed a JV Company with Odisha Industrial Infrastructure Development Corporation (IDCO) for establishment of Angul Aluminium Park Private Limited (AAPPL) for promotion of downstream industries. Modalities for metal transfer from NALCO to AAPPL has been prepared. The Standard Operating Procedure (SOP) for supply of molten metal to the units in the Park has been finalized. Land acquisition, construction of boundary wall and approach road have been completed As  per  the  information  received  from  Odisha  Government,  Odisha Industrial Infrastructure Development Corporation or IDCO has developed  basic  infrastructure  in  Kalinga  Nagar  Industrial  Complex (KNIC);  Jajpur  such  as  augmentation  of  water  supply  scheme  of  22 Million Litres per Day (MLD), construction of new road, development of utility corridors, upgradation of power distribution infrastructure, setting up of central tool room, development of common facility centre including information & communication infrastructure. State Government  has-developed Biju Expressway corridor from Sundargarh to Malkanigiri Districts covering steel/ metal based industrial districts. Besides above, the State Industrial Infrastructure Development Corporation has developed a Land Bank acquiring 1.00 Lakh Acre of land for Industries. Till now 14802.15 acres of land has been acquired by  IDCO  under  category  A  for  allotment  to  different  Industries  and 51364.65 acres of land has been reserved to cater to further industrial need. Further,  the  State  Government  through  State  Level  Single  Window Clearance  System  has  given  in  principle  approval  to  221  proposals, submitted by different industries to set up large scale mineral & metalbased  units  envisaging  investment  of  approximately  Rs.7,87,  144 Crores.

Out of the above, 106 large-scale units in mineral and metal sectors have set  up  their  respective  plants  in  Odisha  with  potential  investment  of Rs.2,87,413.76 Crores and employment of 1,89,505.

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