THE MINISTER OF MINES AND MINISTER OF DEVELOPMENT OF NORTH EASTERN REGION (SHRI B. K. HANDIQUE)
(a) to (e) : A statement is laid on the Table of the House.
STATEMENT REFERRED IN REPLY TO LOK SABHA STARRED QUESTION NO. 287 FOR 30.11.2010 REGARDING
MINERAL CONCESSIONS BY SMT SUPRIYA SULE.
(a): As per the Mines and Minerals (Development and Regulation) Act, 1957, and Mineral
Concession Rules, 1960, prospecting licences for major minerals (other than coal minerals,
oil and natural gas) are granted by the State Governments:-
(i) in case an area is notified, on the basis of assessment of the applicants in
terms of criteria including any special knowledge of, or experience in, reconnaissance
operations, prospecting operations or mining operations, as the case may be, possessed by the
applicant; the financial resources of the applicant; the nature and quality of the technical
staff employed or to be employed by the applicant; and the investment which the applicant
proposes to make in the mines and in the industry based on the minerals,
(ii) in case an area is not notified, on âfirst-in-timeâ basis, with the provision
that the State Government, may, for special reasons to be recorded and with the prior approval
of the Central Government in respect of First Schedule minerals, give preference to a later
applicant,
(iii) subject to the restriction (unless relaxed with the approval of the Central Government) that the total area held by the licensee for the mineral in the State shall not exceed a total area of twenty five square kilometers in a State, and
(iv) in case of First Schedule minerals, prior approval of the Central Government has been duly obtained,
(b) to (e): The Government has enunciated a National Mineral Policy, 2008, which seeks to
attract investment and high technology for prospecting and exploration. The Policy seeks to
expedite reconnaissance work for the entire country at the earliest through an open sky policy
of non-exclusivity in grant of reconnaissance licence. In order to attract large investments
and high technology particularly to locate deep seated minerals, the Policy recommends
introduction of a Large Area Prospecting Licence for non-bulk minerals. The Policy further
enunciates that areas of operations within each State to be suitably enlarged. A proposal to
give legislative effect to the Policy recommendations is under consideration of the Government.