GOVT FAST-TRACKS MINES ALLOCATION
To fast-track and simplify the process of allocation of mines, the government has issued fresh guidelines that effectively does away with the firstcome, first-served policy, which is currently followed for auction for licences based on technical parametres including size of the financial bid. The guidelines that came into force with immediate effect on November 1, seek to bring in more transparency in the process of allocation and reduce the number of pending allocation.
NEW DELHI: To fast-track and simplify the process of allocation of mines, the government has issued fresh guidelines that effectively does away with the first-come, first-served policy, which is currently followed for auction for licences based on technical parametres including size of the financial bid.
The guidelines that came into force with immediate effect on November 1, seek to bring in more transparency in the process of allocation and reduce the number of pending allocation.
The major pre-requisites to be considered before allocation of a mine include technical expertise, financial strength and proposed investment, value addition to the end-use project and financial bid as a percentage of royalty. Further, to prevent arbitrary proposals, allocation has been barred for areas that have not been prospected for minerals. Besides, non-notified land also can no longer be allocated.
“State governments have been requested to process all proposals in accordance with these guidelines to facilitate expeditious disposal of mineral concession applications. Nearly 64,000 mining applications in various stages are pending before state governments while another 287 licence execution cases and 2,577 renewal applications are also pending,” a mines ministry official told HT.
“This sector needs to move on. These guidelines supercede all previous instructions in this regard,” he added.
The guidelines also lay down strict timelines for each step of allocation of mines including environment and forest clearances.