Some of the salient features of the policy include seamless transition from regional exploration (RE) to prospecting leases (PL) to mining leases (ML) while unbundling the three processes from each other. As a result, companies may indulge in any of the processes and then transfer it to another company to complete the chain.

“In other countries there are companies which are very good at reconnaissance and transfer their leases or sell data after that. We want the same model here so that mining is done scientifically,” Mines minister Sis Ram Ola said. The policy is expected to treble investment in the sector from Rs 18,000 crore to Rs 55,000 crore in the next 4-5 years.

The issue of royalty rates, though covered under the policy, has, however, not been approved by the Cabinet. The policy has recommended ad valorem rates for some of the minerals like iron ore, graphite and uranium. The revision is expected to result in rationalisation of royalty accruals to states — especially in case of iron ore whose prices have gone up appreciably. Accruals for major mineral producing states are likely to increase from Rs 2,014 crore in 2006-07 to Rs 3,943 crore.

Digging out the policy’s core

•Absolute right of prospector to obtain mining lease where requisite work has been done

•Unbundling of prospecting from mining, whereby prospector can invest, find and sell data

•Two new concessions in the form of non-exclusive reconnaissance operations and large area prospecting license

•Mining companies to spend a percentage of turnover on social infrastructure as CSR

... contd.