Lok Sabha Question No. 2693 (UNSTARRED), answered on 2024-08-07
Subject: Private and Foreign Players in Mining Sector
Ministry: MINES
Asked by: Shri Biplab Kumar Deb

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2693

ANSWERED ON 07.08.2024

## PRIVATE AND FOREIGN PLAYERS IN MINING SECTOR

## 2693 SHRI BIPLAB KUMAR DEB:

Will the Minister of MINES be pleased to state:

- (a) whether the Government has undertaken steps to attract private and foreign players in the mining sector;
- (b) if so, the details thereof; and
- (c) the revenue generated/earned and success attained as a result of the same?

## ANSWER

## THE MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a) & (b): As per the FDI Policy effective from 15.10.2020, 100% FDI is allowed under 'Automatic'  route  for  mining  and  exploration  of  metal  and  non-metal  ores  including diamond, gold, silver and precious ores. For mining and separation of titanium bearing minerals and its ores, its value addition and integrated activities, 100% FDI is allowed under 'Government' route. FDI is not allowed in mining of 'prescribed substances' as specified by the Department of Atomic Energy.

The Mines and Minerals (Development & Regulation) Act, 1957 [MMDR Act, 1957] was amended with effect from 12.01.2015 whereby auction regime was introduced for grant of  mineral concessions. The objective of the said amendment was to bring in greater transparency and to enhance the revenue share to the State Governments from mining sector.

Thereafter,  the  MMDR  Act,  1957  was  amended  with  effect  from  28.03.2021  and 17.08.2023  with  the  objective  of inter-alia increasing  mineral  production,  boosting employment and investment in the mining sector, encouraging private sector participation in mineral exploration and enhancing the pace of auction of mineral resources. Some of the  key  amendments  include  removal  of  end-use  restrictions  for  auction  of  mines, allowing notification of accredited private exploration agencies for undertaking exploration and enabling funding  of  such  agencies  under  the  National  Mineral  Exploration  Trust, removal of restrictions on transfer of mineral concessions and increasing exploration and production of critical and deep-seated minerals which are essential for the advancement of  many  sectors,  including  high-tech  electronics,  telecommunications,  transport  and defence.

(c): As a result of the reforms implemented by the Central Government, a total of 395 mineral  blocks  have  been  auctioned  in  the  country  since  the  introduction  of  auction regime in 2015 which have been allocated to both private companies and Public Sector Undertakings.  Out  of  these,  50  mines  are  already  in  production.  Further,  23  private exploration agencies have been notified for the purpose of carrying out exploration.

The revenue to the State Governments where auctioned mines have been operationalized has increased considerably. The annual accrual of auction premium to the States is around Rs. 20,000 Crores from the operationalized auctioned mines. This amount is in addition to the accrual by way of royalty payments and from contributions to District Mineral Foundation and National Mineral Exploration Trust by the lease holders.

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