The Hindu Business Line : New mining policy to boost investments

Improved guidelines
Policy will generate employment for about five lakh skilled & unskilled labour force
The Environment Ministry's suggestions with PMO for necessary approval
MoU signed to attract investments in domestic mining sector

MR RATAN JINDAL (left), Vice-Chairman & MD, Jindal Stainless Ltd; Mr Sis Ram Ola, Minister for Mines; Mr R.K. Somany, Past-President, Assocham; and Dr T. Subbarami Reddy, Minister of State, at a meeting in the Capital on Thursday. — Ramesh Sharma

New Delhi , June 29

The Ministry of Mines will formulate a new National Mining Policy, which will help the country attract domestic and foreign direct investments to the tune of Rs 1,00,000 crore in the mining sector. It will also generate direct and indirect employment for about five lakh skilled and unskilled labour force by 2011, the Union Minister for Mines, Mr Sish Ram Ola, said, while inaugurating a summit on Indian Metal & Mining Sector organised by the Assocham here on Thursday .

Speaking on the occasion, the Secretary of Ministry of Environment & Forests , Dr Prodipto Ghosh, said in order to facilitate mining operations steps have been initiated to make the process of granting of environmental clearances for mining projects in a speedy manner.

He said that his Ministry would shortly come out with a notification that would re-engineer, reform and rationalise old guidelines to quickly give environmental and forest clearances.

New Rules

Dr Ghosh, however, clarified that the new and modified environment and forest guidelines will have `no relaxation' for degradation of environment and forests to ensure that exploration of mining potential does not compromise on it.

He said that guidelines formulated by the Environment Ministry in consultation with Ministry of Mines have been sent to the Prime Minister's Office for necessary approval. After the PMO sends it back to the Ministry with the necessary approvals the Government would come out with the relevant notifications, he added.

The new guidelines for according environmental and forests clearances have been amply reformed and rationalised to suit the current spirit of liberalisation so that the mining sector contribution significantly goes up in national GDP, he said.

Better prospects

Elaborating on the liberalisation of the mining sector the Minister said that the existing mining policy of 1993 had become outdated and contains stringent provisions, which restrict investors to put their money into Indian mining and mineral sector. It is because of this reason that the Government intends to come out with a policy that will attract huge investments as this sector has big potential, which has not been realised, he said.

Mr Ola also announced that his Ministry had signed a Memoranda of Understanding to attract investments in the domestic mining sector from countries like Australia, Canada, China, Iran, South Afriac, Mozambique and Kazakstan. These countries have in principal agreed to transfer their technological know-how to India, he said.