Auctions of 17 mineral blocks across seven states would yield a total revenue of INR 59,639 crore for the whole lease period.
As per the estimates of the Union mines ministry, these blocks, after auctions, have already fetched incremental revenue of INR 47,551 crore. Until the end of November this year, the 17 mineral blocks have gone under the hammer in Andhra Pradesh, Karnataka, Jharkhand, Madhya Pradesh, Rajasthan, Odisha and Chhattisgarh.
Auctions of mineral blocks have kicked off under the amended Mines & Minerals- Development & Regulation (MMDR) Act, doing away with the practice of discretionary allotments.
A report on achievements of the mining sector by the ministry and the Department of Industrial Policy & Promotion (DIPP) says major policy interventions to promote exploration and enhance private sector participation has aided in mining sector’s growth. Mineral production logged nine per cent growth in FY16, helped by increased production of iron ore (25.85 per cent) and chromite (25.9 per cent). Exports of iron ore and concentrates of copper and chrome also rose significantly last fiscal.
The amended MMDR Act has established the National Mineral Exploration Trust (NMET) wherein lease holders are needed to contribute a sum equivalent to two per cent of the royalty to the NMET. Under NMET, INR 201 crore has been deposited at the end of May 2016. The Centre has approved 13 mineral exploration projects in the states of Madhya Pradesh, Odisha, Maharashtra, Chhattisgarh, Karnataka and Jharkhand.
The Union government has rolled out many fiscal incentives for the mining sector- waiver of 30 per cent export duty on low grade iron ore fines and lumps, cutting export duty on bauxite from 20 per cent to 15 per cent, doing away with export duty on iron ore pellets and reducing export duty to Japan and South Korea on iron ore of NMDC origin from 30 per cent to 10 per cent.
The report states FDI inflows to mining sector between April 2014 to March 2016 zoomed 1606 per cent to USD 1.2 billion compared with USD 70.62 million recorded during April 2012 to March 2014. Major FDI inflows have come from Sesa Sterlite, Essel Mining & Industries Ltd, Rio Tinto Exploration India Ltd and Thiess Minecs India Pvt Ltd.
Leave a Reply