National Mineral Exploration Policy - Attracting Private Players
This content highlights the National Mineral Exploration Policy focusing on non-fuel and non-coal minerals to attract private players for exploration. It discusses incentives, alternate models, and measures to boost exploration in the mining sector.
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National Mineral Exploration Policy (Non fuel and Non-coal Minerals) Attracting Private Players Himanshu Shukla Ministry of Mines
Mineral Exploration MMDR Act, 2015 Reconnaissance Permit Prospecting License Mining Lease No linkage between exploration and grant of mining lease Why should one invest ? Project Assigned: Alternate models for attracting private players for exploration within the new framework
Basket of Incentives 1. Explorer to have an attractive share in auction proceeds Feasible options: The successful bidder pays to the explorer an attractive amount for the expenditure incurred indexed to the value of the reserves. The Government pays to the explorer a percentage of earnings from the auction proceeds. (transferable right)
Incentives (Contd.) 2. Tax incentives on investments in Exploration companies. (flow through share mechanism) 3. Reducing restrictions on free availability of preliminary exploration data. 4. Making exploration datatrade seamless.
Incentives (Contd.) 4. Sliding scale for Permit Fee. 5. Survey and Exploration in the negative list for service tax. 6. Relaxation in customs duty for advanced technology. 7. Tax incentives in respect of prospecting for minerals to be on par with those for prospecting of oil and natural gas.
Other Measures to Boost Exploration 1. Deep Seated /Concealed Minerals (ex. Diamond and Gold) (huge investment required) MECL and State PSU s to form Joint Ventures with global players. The preferred rights over mining lease systemmay be considered.
Other Measures(contd.) 2. State PSU s to be encouraged to take-up exploration 3. Capacity Building of State Exploration Companies (Funds, Functionaries and Technology)
4. Infusion of state of the art Technology - Signing MOU s with advanced countries to access the latest technology. -Creating a trained workforce.
