The Hindu Business Line : New mineral policy hanging fire

Divergent views arising from within the Government and overlapping of the terms of reference of multiple committees appear to be holding up the finalisation of the proposed National Mineral Policy. The policy, which was expected to be placed before Parliament during the current winter session, is unlikely to be finalised before year-end.

Committee

To coordinate between the related needs of different stakeholders in the mining sector, a committee headed by the Planning Commission member, Mr Anwarul Hoda, was set up to provide the guiding principles for the policy and took the opinions of all the stakeholders.

The committee took more than two years to finalise its report and submitted it in June this year.

But subsequent to that, two more committees have been set up. One has been set up by the Ministry of Mines to examine the recommendations made by the Hoda committee and identify the feasible one.

Even before this panel could examine the entire Hoda panel report and recommend a stand, the Prime Minister's Office (PMO) set up a high-powered committee to look particularly into the issue of mining and exporting of iron ore, which in value terms contributes to more than 50 per cent of the mining sector's turnover.

And since the high-level committee is deliberating on the issue, the internal committee of the Ministry of Mines is now waiting for it to finalise the recommendations before it can proceed with its own report.

Royalty

Adding further complications to the issue is the question of coal mining and royalty payable to the State Governments.

According to official sources, the final draft for the proposed incorporating special provisions for iron ore and coal would have to wait till the PMO committee gives its opinion on iron ore and the PM's committee on energy spells out the stand on the coal sector.

Adding further complications to the issue is the question of coal mining and royalty payable to the State Governments.

According to official sources, the final draft for the proposed policy incorporating special provisions for iron ore and coal would have to wait till the PMO committee gives its opinion on iron ore and the PM's committee on energy spells out the stand on the coal sector.