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Allow trading of mining licences, says industry

Our Bureau New Delhi | Updated on June 10, 2014 Published on June 10, 2014

The mining industry has sought transferability of licences by creating a market for trading the mining licences, a step that would help in adequate price discovery.

In a note sent by the Confederation of Indian Industry to the Ministry of Mines, the industry has also asked for creation of seamlessness in obtaining various clearances for licences and auctions of fully explored areas.

Another issue raised by the industry is the reduction in delays for renewal of mining leases. “We believe that capacity building within the state machinery should be expedited so that ‘deemed’ approvals do not have to be resorted to; instead the approval process should be such that time-bound renewals can take place,” CII said in its representation.

Industry experts claimed that policy paralysis under the previous Government had severely impacted minerals production in the country. According to Government data, the index for mineral production during 2013-14 had fallen 0.8 per cent. In value terms, during March 2014, mineral production grew marginally by 4.1 per cent to ₹21,332 crore.

On Tuesday, Mining Secretary Anup Pujari said allegations of policy paralysis are harsh and that the country needed more reforms for the mining sector.

Some specific reforms asked by the industry are that a prospecting licence should not be awarded competitively and instead a first-come-first-serve method should be adopted. The industry said that competitive bidding should be done for reserves proven according to the internationally accepted UN Framework Classification.

 

Published on June 10, 2014
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