The basic objectives of the mineral policy in respect of minerals shall be as follows:

• To explore for identification of mineral wealth in the land and in offshore areas;

• To develop mineral resources taking into account the national and strategic considerations and to ensure their adequate supply and best use keeping in view the present needs and future requirements;

• To promote necessary Linkages for smooth and uninterrupted development of the mineral industry to meet the needs of the country;

• To promote research and development in minerals;

• To ensure establishment of appropriate educational and training facilities for human resources development, to meet the manpower requirements of the mineral industry;

• To minimise adverse effects of mineral development on the forest, environment and ecology through appropriate protective measures; and

• To ensure conduct of mining operations with due regard to safety and health of all concerned.

It also emphasises the development of infrastructure in backward areas where mineral activities are normally carried out.

It is also proposed that for any grant of mineral concessions for small deposits in scheduled area, preference should be given to the scheduled tribes. A special effort will be made for survey and exploration of deep sea bed area by Dept. of Ocean Development. Induction of foreign technology and foreign participation and mining of high value and scarce mineral shall be pursued.

Mines and Minerals (Regulation and Development) Bill, 1994 gives more powers to the State Governments, providing greater stability of tenure in mining leases and accelerating inflow of private capital, both domestic and foreign, as also state-of-the-art technology into the mineral sector.

he bill has removed any restriction on equity holding by foreign nationals in a mining company. Any company registered or incorporated in India can apply for a prospecting licence or a mining lease from the concerned State Government.

The Bill has deleted 15 minerals hitherto listed in the First Schedule of the Act requiring prior approval of the Central Government before the State Government could grant a prospecting licence or a mining lease.

The minerals so deleted are :

- Apatite and phosphatic ores
- Barytes
- Dolomite
- Gypsum
- Kyanite
- Magnesite
- Molybdenum
- Nickel
- Platinum and other precious metals
- Sillimanite
- Silver
- Sulphur and its ores
- Tin
- Tungsten
- Vanadium ore

With this deletion (excepting the atomic minerals and fuel minerals) there would only be 11 minerals left for which the State Government would require prior approvals of the Central Government. These are:

- Asbestos
- Bauxite
- Chrome ore
- Copper Ore
- Gold
- Iron ore
- Lead
- Limestone except where it is used in Kilns for the manufacture of lime as building material
- Manganese ore
- Precious stones
- Zinc

Source: Doing Business with India

Last Upate: July 31, 1998