The total value of mineral production (excluding atomic minerals) during 2005-06 is estimated at Rs.75,121.61 crore. Of this, fuel minerals account for Rs.56,412 crore (75 per cent) metallic minerals Rs.8,973 crore (12 per cent) and non-metallic minerals, including minor minerals are valued at Rs.9,736 crore (13 per cent). This information is given in the 2005-06 Annual Report of the Ministry of Mines. According to the report, based on the overall trend so far, the index of mineral production (base 1993-94=100) for the year 2005-06 was expected to be 154.23 as compared to 153.48 for 2004-05 showing marginal growth.
The provisional value of export of ores and minerals during 2004-05 was Rs.69,342 crore. Diamond (mostly cut) was the principal item of export during 2004-05, which accounted for 67.1 per cent of the total exports followed by iron ore 20.1 per cent, granite 3.7 per cent, alumina 1.8 per cent, chromites 1.2 per cent and precious & semi-precious stones 1.1 percent. Building and monumental stones, emerald, coal (including lignite), marble and bauxite were the other important minerals exported during the year.
The report says that the provisional value of import of ores and minerals during 2004-05 was Rs.1,82,710 crore. Petroleum (crude) was the main constituent of mineral import during 2004-05, which accounted for 65.1 percent of the total value of imports, followed by diamond (uncut) 22.9 percent. Coal, coke, copper ores and concentrate, rock phosphate, sulphur and iron ore were the other important minerals imported during the year.
According to the report the Ministry has formulated a policy paper on the allocation of iron ore mines. A copy of the paper has been placed before the high level committee set up under shri Anwarul Hoda, member Planning commission for its consideration. The committee would review the National Mineral policy and recommend possible amendments to the MMDR Act. The terms of reference of the Hoda committee include review of existing procedures for grant of mineral concessions in order to streamline & simplify procedures, prioritise critical infrastructure needs of the Indian mining sector, facilitate investment to meet these needs, identify ways of augmenting State revenues, and allow issues relating to value addition and forest and environment clearance.
As per a recent decision, foreign equity holding is now allowed upto 100 per cent on the automatic route for all non-fuel and non-atomic minerals, including diamonds and precious stones. Mineral Concession Rules 1960 (MCR) were amended in January 2005 removing the restriction of minimum area in case of renewal of mining lease.
202 reconnaissance permits covering an area of over 2,78,773 square kilometers have been granted till December, 2005, of which 25 reconnaissance permits for an area of over 40,607.55 square kilometers were approved for grant during the calendar year 2005.
The second phase expansion of National Aluminium Company (NALCO)’s bauxite mines from 48,00,000 TPY to 63,00,000 TPY, alumina refinery from 15,75,000 TPY to 21,00,000 TPY, aluminium smelter from 3,45,000 TPY to 4,60,000 TPY and captive power plant from 960 MW to 1200 MW, at an investment of Rs.4091.51 crore at July, 2003 price level was approved by the Government on December 26, 2004. It is expected to be completed in 50 months.
DS/AS/040406-AnnualReport-Mines
(Release ID :16975)