The Hindu Business Line : Govt plans time-bound grant of mining licences

Welcome changes
`Give priority to iron ore value adders'
Jharkhand may benefit on Chiria mines issue
May hit interests of SAIL, RINL, Essar and Ispat

New Delhi, Feb. 21 The Government proposes to commit itself to a time-bound mineral exploration process by setting timelines for grant of prospecting and mining licences and set up an independent mining tribunal to settle disputes, if any.

The National Mineral Policy 2007, which is expected to be taken up by the Cabinet on Thursday, has proposed that an independent mining tribunal be set up for dispute resolution.

The tribunal would also look into delays on the part of Governments in granting licences and would have the authority to lay down time limits for granting such licences.

Regarding time limits, the new policy proposes that in case of prospecting licences the time limit for conveying the Government's decision would be 10 months in case where the applicant is a single entity, and 15 months when the application is made by more than one company.

As for mining licences, in case of single applicant the proposed time limit has been set at 15 months and 18 months for multiple applicants.

With regard to the controversial issue of several State Governments insisting that value addition of the ore should be done within the boundaries of the State itself, the policy endorses the point and proposes that State Governments give priority to later value adders, especially those who have signed MoUs with the States.

This would, in particular, enable States to unbundle their mineral resources for which licences had been granted earlier but not used.

The Jharkhand Government, in particular, may benefit with respect to Chiria mines, for which every steel manufacturer in the country has applied but the rights for which are held by SAIL.

SAIL has, however, not developed these mines.

Simultaneously, the cut-off date for allotment of captive mines has been fixed as July 2006, while taking into account the capacities already in the pipeline within the State.

In other words, prospective investors would not only have had signed a MoU before July 2006 but also committed themselves to a project in the State.

This would particularly hit the interests of three of the six primary steel manufacturers - Rashtriya Ispat Nigam Ltd (AP), Essar Steel (Gujarat) and Ispat Industries (Maharashtra).

These plants are in States that have no iron ore reserves and their applications for mining leases in other States are pending for several years now.

With regard to iron ore exports, the policy does not support the idea of imposing export duty.

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