Lok Sabha Question No. 1351 (UNSTARRED), answered on 2016-07-25
Subject: New National Mineral Exploration Policy
Ministry: MINES
Asked by: KUNWAR HARIBANSH SINGH, VIJAYSINH MOHITE PATIL, HEENA VIJAYKUMAR GAVIT, SUPRIYA SADANAND SULE, GAJANAN CHANDRAKANT KIRTIKAR, HARI BABU KAMBHAMPATI, BALKA SUMAN, CH. MALLA REDDY, MUTHAMSETTI SRINIVASA RAO (AVNTHI), SUDHEER GUPTA, SUNIL BALIRAM GAIKWAD, VIJAY KUMAR S.R., T. RADHAKRISHNAN, BIDYUT BARAN MAHATO, B. SREERAMULU, POONAMBEN HEMATBHAI MAADAM, GOPALAKRISHNAN CHINNARAJ, RAKSHA NIKHIL KHADSE

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 1351 TO BE ANSWERED ON THE 25 TH  JULY, 2016

## NEW NATIONAL MINERAL EXPLORATION POLICY

## 1351.   SHRI KUNWAR HARIBANSH SINGH:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

DR. HEENA VIJAYKUMAR GAVIT:

SHRIMATI SUPRIYA SULE:

SHRI GAJANAN KIRTIKAR:

DR. KAMBHAMPATI HARIBABU:

SHRI SUMAN BALKA:

SHRI CH. MALLA REDDY:

SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI):

SHRI SUDHEER GUPTA:

Dr. SUNIL BALIRAM GAIKWAD:

SHRI S.R. VIJAYAKUMAR:

SHRI T. RADHAKRISHNAN:

SHRI BIDYUT BARAN MAHATO:

SHRI B. SRIRAMULU:

SHRIMATI POONAMBEN MAADAM:

DR. C. GOPALAKRISHNAN:

SHRIMATI RAKSHATAI KHADSE:

Will the Minister of MINES be pleased to state:

- (a)  whether only 10 per cent of the entire geological potential area has been explored and mining work undertaken in  1.5 to 2 per cent of the total area in the country and if so, the details thereof and the reasons therefor;
- (b)  whether the Government is in the process of framing a New National Mineral Exploration Policy (NMEP) and if so, the aims and objectives thereof;
- (c)  whether there is any proposal to involve private sector in mineral exploration and if so, the details thereof along with the mode of revenue sharing worked out for the purpose;
- (d)  whether  the  Government  proposes  to  allow  private  firms  to  start  exploration  for  more minerals  such  as  diamond  and  gold  where  current  mining  is  negligible  and  if  so,  the details thereof; and
- (e)  the other steps taken by the Government to boost mining sector in the country?

## A  N   S  W  E  R

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

(a): Geological Survey of India [GSI] has covered almost the entire area of 31.4 lakh sq. km. of the country's mappable area by systematic geological mapping on 1:50,000 scale. On the basis of this, the geological potential area of 5.71 lakh sq. km. has been identified for scheduled nonfuel  and non-coal major minerals. GSI has launched National Geochemical Mapping (NGCM) and  National  Geophysical  Mapping  (NGPM)  programs.  Of  the  identified  geological  potential area, 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 launch mineral exploration programmes based on the above baseline data.

An area of 4,550 sq. kms. is under mining leases all over the country pertaining to all minerals excluding fuel, atomic and minor minerals.

(b):  Yes.  The  National  Mineral  Exploration  Policy  (NMEP)  has  been  approved  by  the Government. The Policy is available at the website of Ministry of Mines (http://mines.nic.in/writereaddata/Content/NMEP.pdf). The policy, inter-alia, proposes that:

1. The Government will create baseline geoscientific data as a public good and will make available  pre-competitive  baseline  geoscientific  data  of  the  highest  standards  free  of charge in public domain.
2. The  Government  will  carry  out  aero-geophysical  survey  of  the  country  in  a  mission mode initially in the potential areas of around 8 lakh sq. kms and subsequently in the rest of the areas.
3. A National Geoscientific Data Repository (NGDR) will be set up to collate all baseline and mineral exploration information generated by various central and state government agencies  and  also  mineral  concession  holders  and  maintain  these  on  a  geospatial database.
4. The  Government  will  establish  a  National  Centre  for  Mineral  Targeting  (NCMT)  in collaboration with geoscientific organisations, academia and industry to target concealed and deep-seated mineral deposits.
5. The Government will carry out auctioning of identified exploration blocks for exploration by private sector on a suitable revenue sharing basis in case their exploration leads to auctionable  resources.  In  case  no  auctionable  resources  are  discovered,  exploration expenditure will be reimbursed on normative cost basis.

(c)  &  (d):    Under  the  NMEP,  the  private  agencies  could  be  engaged  to  carry  out  exploration work in identified blocks/areas with the right to a certain share in the revenue [by way of certain percentage of royalty/ premium] accruing to the State Government throughout the lease period, with transferable rights in case of discovery of an auctionable block. In cases where no such blocks  are  discovered,  the  exploring  agency  will  be  reimbursed  on  normative  cost  basis. Reasonable blocks/ areas [where baseline geoscientific data is available with GSI] for regional exploration has been earmarked/ identified by the Government which will be allotted to private explorers through open competitive bidding/auction process by the State Government.

(e):  The  other  steps  taken  by  the  Government  are  the  enactment  of  the  Mines  and  Minerals [Development  and  Regulation]  Amendment  Act,  2015  and  the  Atomic  Minerals  Concession Rules, 2016. The MMDR Amendment Act, 2015 has prescribed auction by competitive bidding as  the  method  for  grant  of  mineral  concessions  for  major  minerals.  The  other  important provisions  of  the  Act  are  assured  tenure  and  easy  transferability  of  mineral  concessions; establishment of District Mineral Foundation for the welfare of persons, and areas, affected by mining related operations; establishment of National Mineral Exploration Trust for regional and detailed  exploration;  and  strict  penalty  provisions  against  illegal  mining.  The  Atomic  Mineral Concession Rules, 2016 has provisions which have led to release  of  significant  area,  where atomic minerals are less than the prescribed threshold values, for grant of mineral concessions by State Governments by the method of auction through competitive bidding.