Lok Sabha Question No. 4162 (UNSTARRED), answered on 2016-08-11
Subject: Utilisation of Funds by NMET
Ministry: MINES
Asked by: ANIRUDHAN SAMPATH

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 4162

## TO BE ANSWERED ON THE 11 TH  AUGUST, 2016

## UTILISATION OF FUNDS BY NMET

## 4162.   DR. A. SAMPATH:

Will the Minister of MINES be pleased to state:

- (a)  whether the Government is aware that despite passage of a year of allotting mining licenses, no significant headway has been made by the National Mineral Exploration Trust (NMET), if so, the reasons therefor;
- (b)  the  State-wise  details  of  activities  carried  out,  progress  made,  funds  allocated, released and utilized by NMET till date;
- (c)  the State-wise details of funds accrued to the Trust including the lease-wise details of two per cent royalty received from lease holders; and
- (d)  the State-wise details of the utilization/expenditure of funds collected under NMET till date?

## A  N   S  W  E  R

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

(a) to (d):  In pursuance of the Mines and Minerals (Development & Regulation) Amendment Act 2015, the National Mineral Exploration Trust (NMET) was set up vide gazette notification No. G.S.R. 633 (E) dated 14.8.2015 and the National Mineral Exploration Trust Rules 2015 were  also  notified  vide  Gazette  Notification  No.  G.S.R.  632  (E)  dated  14.8.2015,  with  the prime  objective  of  promoting  mineral  exploration  in  the  country.  The  amendment  Act prescribes payment to the NMET, a sum equivalent to 2% of the royalty paid in terms of the minerals listed in the Second Schedule.

The government has taken following actions relating to NMET:

- (i) As per NMET Rules, the Governing Body and the Executive Committee of NMET have been set up.
- (ii) The meeting of Executive Committee and Governing Body of NMET was held and the modalities for utilization of funds accruing to NMET and processing of proposals received from the state governments for funding under NMET.
- (iii) Mineral Exploration Corporation Limited (MECL), a PSU under the Ministry of Mines has been designated as the nodal agency for carrying out exploration under NMET .
- (iv) A  Technical  Committee  has  also  been  constituted  to  evaluate  the  projects  for funding under the NMET.
- (v) A tripartite agreement among NMET, MECL and the respective State Government has been approved for implementation of the exploration projects.
- (vi) A  separate  account  has  been  opened  in  the  State  Bank  of  India,  Main  Branch, Parliament Street, New Delhi for NMET Fund and State Governments have been advised to deposit NMET contribution in this Account.
- (vii) Executive  Committee  has  approved  projects  for  implementation  by  MECL.  The estimated cost of the 12 approved projects is around Rs. 21.61 crore, the details of which are as follows:
- (viii) Additionally, three project proposals on gold from Andhra Pradesh and Karnataka, one  proposal  on  limestone  from  Andhra  Pradesh  and  one  proposal  on  iron  from Karnataka have been received. Further, 19 draft proposals on lignite/coal exploration  in  different  states  at  an  estimated  cost  of  Rs.  86.00  crore  have  been submitted by Central Mine Planning and Design Institute Limited (CMPDIL), Ranchi. CMPDIL is now preparing the detailed project reports for these projects.
- (ix) Proposals on mineral exploration and capacity building have been invited from all the State Governments. State-wise committees have been constituted to evaluate the capacity building needs of State DGMs in mineral exploration and recommend to NMET for consideration. Draft proposals on capacity building have been received from  the  states  of  Andhra  Pradesh,  Chhattisgarh,  Rajasthan,  Madhya  Pradesh, Maharashtra and Odisha.

|           | State          | Block                                                    | Area sq.km   | Mineral   |   Cost (Rs.lakhs) | Status      |
|-----------|----------------|----------------------------------------------------------|--------------|-----------|-------------------|-------------|
| 1         | Odisha         | (i) Jumka- Pathiriposhi Block, Sundargarh Distt.         | 1.71         | Iron-ore  |            772.68 | In progress |
| 1         | Odisha         | (ii) Purheibahal- Chandiposhi Block, Sundargarh Distt.   | 1.35         | Iron-ore  |            265.33 | In progress |
| 2         | Maharashtra    | (i) Mandri - Panchala Block, Nagpur Distt                | 2.50         | Manganese |            130.31 | In progress |
| 2         | Maharashtra    | (ii) Lanjera- Futala Block, Bhandara Distt.              | 8.00         | Manganese |            148.98 | In progress |
| 3         | Chhattisgarh   | (i) Ranigaon- Gondaiya Block, Bilaspur Distt.            | 5.00         | Limestone |            100.52 | In progress |
| 3         | Chhattisgarh   | (ii) Nahardih- Madhaipur Block, Raipur Distt.            | 5.45         | Limestone |             27.89 | In progress |
| 3         | Chhattisgarh   | (iii) Sendurkhar Block, Kabirdham (Kawardha) Distt.      | 2.90         | Bauxite   |             45.13 | In progress |
| 3         | Chhattisgarh   | (iv) Saraipani- Dadar Block, Kabirdham (Kawardha) Distt. | 0.80         | Bauxite   |             44.66 | In progress |
| 4         | Madhya Pradesh | (i) Ghunchihai Block, Satna Distt.                       | 5.00         | Limestone |             57.75 | In progress |
| 4         | Madhya Pradesh | (ii) Jamodi- Mahanna Block, Satna Distt.                 | 30.00        | Limestone |             59.49 | In progress |
| 4         | Madhya Pradesh | (iii) Naubasta- Kolard Block, Satna Distt.               | 15.00        | Limestone |             65.36 | In progress |
| 5         | Karnataka      | G.R. Halli South Block, Chitradurga Distt.               | 1.00         | Gold      |            443.2  | Pending     |
| 12 Blocks | 12 Blocks      | 12 Blocks                                                | 12 Blocks    | Total     |           2161.3  |             |

As on 31.07.2016, NMET has received an amount of Rs.305.00 crore primarily from the States of Andhra Pradesh, Telangana, Odisha, Maharashtra, Goa, Chhattisgarh, Jharkhand,  Madhya  Pradesh,  Kerala,  Bihar,  Gujarat,  Karnataka,  Rajasthan  and  Uttar Pradesh.

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