Cabinet approves National Mineral Exploration Policy

The Union Cabinet chaired by the Hon’ble Prime Minister Shri Narendra Modi ji has approved the National Mineral Exploration Policy (NMEP). The NMEP primarily aims at accelerating the exploration activity in the country through enhanced participation of the private sector. The policy emphasizes on making available baseline geoscientific data of world standards in the public domain, quality research in a public-private partnership, special initiatives for search of deep-seated and concealed deposits, quick aerogeophysical surveys of the country, and creation of a dedicated geoscience database etc. The most important feature of this amendment is that mining leases (ML) and prospecting license-cum-mining lease (PL-cum-ML) will be granted only through an auction process. This is expected to bring in transparency, expeditiousness and simplification in procedures in grant of mineral concessions. In order to implement the recommendations of the NMEP, initially an amount of about Rs.2116 crore over 5 years would be required over and above the annual plan budget of the Geological Survey of India under the Ministry of Mines. Salient Features of the Policy- Ø      The Ministry of Mines will carry out auctioning of identified exploration blocks for exploration by private sector on revenue sharing basis in case their exploration leads to auctionable resources. The revenue will be borne by the successful bidder of those auctionable blocks. Ø      If the explorer agencies do not discover any auctionable resources, their exploration expenditure will be reimbursed on normative cost basis. Ø      Creation of baseline geoscientific data as a public good for open dissemination free of charge.  Ø      A National Geoscientific Data Repository is proposed to be set up to collate all baseline and mineral exploration information generated by various central & state government agencies and also mineral concession holders and to maintain these on geospatial database. Ø      Government will carry out a National Aerogeophysical Program for acquiring state-of-the-art baseline data for targeting concealed mineral deposits. Ø      Provisions for inviting private investment in exploration through attractive revenue sharing models. Ø      The government intends to launch a special initiative to probe deep-seated/ concealed minerals deposits in the country in collaboration with National Geophysical Research Institute and the proposed NCMT and Geoscience Australia . Impact of the Policy- Ø      The pre-competitive baseline geoscientific data will be created as a public good and will be fully available for open dissemination free of charge. This is expected to benefit public and private exploration agencies. Ø      Government will engage private agencies for carrying out exploration in identified blocks / areas with the right to certain share in the revenue accruing to the State government through auction. Ø      Public expenditure on regional and detailed exploration will be priori