The Hindu Business Line : Hoda panel for preferential allocation of iron ore mines

The Anwarul Hoda Committee on mining sector reforms has recommended that all existing steel plants that do not have captive mines should be given preferential allocation of iron ore mines fully prospected by public agencies, without the need for going through the auction procedures as a one time measure to create a level playing field between them and the steel plants that have mines.

As of now only SAIL and Tata Steel has their own mines, while the latter entrants like the Essar, Ispat and Jindal Vijay Nagar and public sector RINL do not have their own mines.

The report has also recommended changing the system of royalty charged on minerals mined from the present specific charges to ad-valorem system and have suggested reference point of 7.5 per cent.

It has also recommended seamless transition of reconnaissance permit (RP) to prospecting licence (PL) to mining lease (ML) as that would encourage companies to invest funds in taking up reconnaissance activities.

As of now these three stages of mining operations are licensed separately and there is no guarantee that the company who discovers the resource data through RP will get the prospecting rights also and subsequent mining rights. He would also have the right to sell these rights, Mr Hoda told reporters.

Another major bottleneck for the industry was the time taken for getting environment clearances, Mr Hoda said.

It was found that the delay was caused mainly because of the time in preparing the cost benefit analysis and getting the number of trees counted. The committee has recommended that this work should be outsourced.

It has also recommended setting up of a tribunal for mining sector disputes with powers to hear appeals against the Central Government also. The present system is not adequate, the committee noted.