Ministry of Mines
Major minerals - Union List - Ex: Coal, Manganese, iron ore, limestone, silica sand, quartz sand,
Minor minerals - State List - Ex: Gravel, Kankar, ordinary sand, slate, marble, limestone for lime burning

Natural resources, including minerals, are a shared inheritance that needs to be preserved for future generations.

According to NITI Aayog, the ratio of minerals produced to minerals imported in India was 1:10.

Feb 2018, Coal Mining open to private sector

After nationalisation in 1973 through Coal Mines (Nationalization) Act, 1973, the state owned Coal India wa the sole entity allowed to sell coal.
In 1993, it was allowed Captive mining i.e. private companies can dig coal for their own steel, cement, power but cannot use the mined coal for trading
Coal mines/blocks were allocated to the various government and private Companies in sectors like steel, cement, power, coal-to-gas and coal-to-liquid under the provisions of this act by inter-ministerial committee
However, these allocations were often tainted with corruption and large kickbacks.

C&AG report, alleging loss of 1.85 lakh crore to exchequer, Supreme Court of India cancelled these allocations in 2014.

Enabling provisions have been made for allocation of coal mines by auction and are allotted

Now in Feb 2018, Coal mining opened to private sector ‘only for commercial mining an sale purpose'
revenue sharing basis (as recommended by Pratyush Sinha committee )
Incentives for faster production and for early beginners, 20% reduction in revenue share

Mines and Minerals (Development and Regulation) Act, 1957

Empowers state governments to frame rules to prevent illegal mining, transportation and storage of minerals

Establishment of a trust, to be called the District Mineral Foundation (DMF) for districts affected by mining related operation
National Mineral Exploration Trust (NMET)

Licensees and lease holders shall pay the DMF an amount not more than one-third of the royalty prescribed by the central government, and the NMET two percent of royalty.
Notified minerals: It includes bauxite, iron ore, limestone and manganese ore and are defined as notified minerals. The cent ral government may, by notification, amend this Schedule. (NOTE: Coal is not a notified mineral)
Prospecting license-cum-mining lease: A new category of mining license i.e. the prospecting license-cum-mining lease, which is a two stage-concession for the purpose of undertaking prospecting operations (exploring or proving mineral deposits), followed by mining operations.
Division of powers

Union decides the auction procedure and technicalities. It might reserve some selected mines for end users/PSUs
State to grant all licenses /leases through e-Auction via competitive bidding

Amends Mines & Mineral (Development and Regulation) Act 1957 and The Coal Mines (Special Provisions) Act, 2015

Removal of restriction on end use of coal
Need not require any prior coal mining experience in India/abroad for participation in auction of coal/lignite blocks
Companies which are not ‘engaged in specified end-use’ can also participate in auction Schedule II and III coal mines
Allows prospecting license-cum-mining lease (PL-cum-ML) for coal/lignite blocks

Transfer of statutory clearances to new bidders: Environment and forest clearances along with other approvals and clearances shall automatically get transferred to the new owners of mineral blocks for a period of two years from the date of grant of new lease.

National Mineral Policy 2008

It seeks to make the process of allocation more transparent by making regulatory mechanisms technologically advanced and in consonance with the investment flow
Strengthening the role of Geological Survey of India, Indian Bureau of Mines and State Directorates of Mining and Geology
Developing and enforcing a Sustainable Development Framework so that the rights of indigenous population are not hampered and also ensuring a sustainable ecological balance.
Discouraging unsustainable mining and promoting zero-wastage mining
Developing cluster based approach of mining small deposits.

Replaces NMP 2008
Why: SC asked to revisit NMP 2008 and recommended by Dr. K. Rajeswara Rao Committee 2017
Transparent mechanism
Facilitator role of the government in survey and regulation of exploration, while the private sector would be encouraged to take up exploration activities
Proposes to Grant Industry Status To Mining Sector
Right of First Refusal will be offered to mineral exploration companies when mines explored by them are auctioned
Dedicated mineral corridors
Encourage private sector to take up mine exploration
Long term import export policy for mineral that helps in better planning and certainty in business for private sector
Rationalize reserved areas given to PSUs which are not used and put these areas to auction to encourage private sector
Policy makes efforts to harmonize taxes, levies & royalty with global benchmarks to help private sector.
Sustainable development and Inter-generational equity

Deals with not only well being of present generation but also well being of future generations to come

Creation of a Goa Iron ore Permanent Fund to meet the ends of inter-generational equity and sustainable development.
Norway and several other countries have created Permanent Funds based on extracting economic rent from oil or other natural resources.

Instituted by the Ministry of Mines through Indian Bureau of Mines (IBM) in May 2016
A web-portal has been developed for online filing of the evaluation template for Star Rating of Mines.
The self- certification is to be evaluated and validated by the IBM.
Based on the performance of the mining lease, a star rating of 1-5 is to be awarded.
The star rating will be based on the following parameters:

Adoption of international standards for mining operations and reporting
Scientific and systematic mining to mitigate environmental impact.
Addressing social impacts of resettlement and rehabilitation of mining affected people.
Local community engagements and welfare programmes for socio-economic development of local community.
Progressive and final mine closure to ensure for restoration of mined out land in better conditions than original.

Environment clearances for< /li>
- Up to five hectare of mine lease area for sand and minor minerals to be done at the district level by the District Environment Impact Assessment Authority headed by the District Collector.
- 5-50 hectares - States
- >50 hectares - Centre
Use of technology for stringent monitoring of sand mining and promotion of manufactured sand, artificial sand, fly ash and alternative technologies in construction materials and processes for reducing the dependence on naturally occurring sand and gravel.
It also calls for training of architects and engineers, new laws and regulations, and positive incentives to initiate a shift for lowering dependency on sand.