Rajasthan Mineral Policy, 2015

A mineral is a naturally occurring, inorganic substance with a definite chemical composition and a crystalline structure. Minerals are used to make household articles such as utensils, reading glasses, and even precious jewelry, including materials for constructing buildings.

The New Mineral Policy, 2015, views that the mineral resources are finite. Therefore, the emphasis is now on introducing cutting-edge technology in exploitation, minimize wastage, waste recycle, widespread job-creation, especially to workers drawn from scheduled castes and backward communities, and greater revenue to the Government. The private sector is the fulcrum of this sector. Therefore, the Policy aims at :

( i ) Development of economically sound and stable mining, minerals, metal and mineral reclamation industries.

(ii ) Orderly and economic development of domestic mineral resources, reserves, and reclamation of metals and minerals to help assure satisfaction of industrial, security and environmental needs.

(iii ) Study and development of methods for the disposal, control, and reclamation of mineral waste products, and the reclamation of mined land, so as to lessen any adverse impact of mineral extraction and processing upon the physical environment that may result from mining or mineral activities.

Need for New Policy :

The Government of India initiated economic liberalization in 1991. The National Mineral Policy (NMP) was announced in 1993, opening entire mining sector for private investment Rajasthan Mineral Policy 2015 12 including foreign direct investment. In 1994, the earlier restriction of 40% on foreign equity was removed permitting even 100% foreign equity. The only requirement was that the company should be registered in India under India's corporate laws. "Automatic route" for foreign equity participation up to 50% was introduced in 1997 for companies mining in certain minerals whereby the investors have to go through only the Reserve Bank of India, and not seek any Government approvals. For gold, silver, diamond, etc. approval of Foreign Investment Promotion Board (FIPB) is required, based on certain parameters. Significant changes have taken place since the National Mineral Policy 2008 was initiated. The State's Mineral Policy 2011 revealed certain limitations, particularly in case of minor minerals where provisions of granting mining lease in Government land (including forest land) after delineation, proved to be a big hindrance for new grants and for mineral development.

The Policy had also been silent regarding allotment of minor mineral concession in the tribal areas and for the upliftment of tribals. In case of major minerals, the Policy seemed to have a narrow perspective regarding restricting grant of certain minerals like Gypsum, Rock Phosphate, Potash, SMS Grade Dolomite, SMS Grade Lime Stone to public sector undertakings. This reduced the public participation. Provisions made for allotment of mineral concession by joint venture through RSMML in tribal area also proved to be insufficient and no concessions could be allotted in past year. This adversely affected the mineral exploitation in tribal areas. The State had also to sacrifice probable revenue and employment opportunities. Due to such restrictions on grant, illegal mining emerged as a big threat. Some provisions made in the policy have not been implemented till now as they were not found to be feasible. In recent past, the construction industry has grown by leaps and bounds. The mineral based industries, especially cement, have assumed bigger dimensions. This sector is poised for major growth. Therefore, it was felt essential that the State now should devise a new Policy with a holistic approach in public interest and to attract new investment in the industrialmineral sector in the State.

Objectives :

a. To infuse greater transparency and enhance efficiency in grant of mineral concessions by simplifying the procedure and adopting e-governance.
b. To provide conducive framework of procedural, regulatory, fiscal and legal aspects in the investment regime.
c. To enhance exploration of mineral wealth of the State with the help of in-house facilities available and outsourcing other modern techniques through private participation.
d. To gear-up oil and gas exploration and its related production activities in the State, step up value addition in hydrocarbon sector.
e. To develop scientific mining techniques with due regard to safety, productivity, conservation, cost-effectiveness, environmental and social sustainability.
f. To encourage investors (present and potential) for establishing mineral based industries in the State by creating a favorable and transparent environment.
g. To promote research and development in association with private companies.
h. To develop human resource and fulfillment of social responsibility.
i. To develop, enhance and maintain viable infrastructure.
j. To boost employment opportunities.
k. To curb illegal mining effectively.
l. To enhance efficiency of the Departmental officials by conducting trainings and seminars.

Implementation :

The Government is committed to successful and time-bound implementation of this Policy. In order to ensure that all key aspects are successfully implemented, the Department will identify key initiatives linked with major policy items (e.g. for creating a State-wide mineral map, for increasing business friendliness, etc.). Each initiative will be led by a senior Departmental official. The Department will constitute an Implementation Team that will periodically review the implementation of the Mineral Policy especially for policy aspects requiring significant interdepartmental coordination (e.g. mineral exploration, mineral-based industries, etc).