Flagging delays in operationalisation of critical mineral projects after mine auctions take place, a parliamentary panel has recommended the setting-up of an inter-ministerial committee to monitor the progress of such ventures.
Urging the government to give priority to critical mineral projects in getting necessary statutory clearances, the Standing Committee on Coal, Mines and Steel, in its report, titled ‘Self-Reliance in Minerals and Metals’, also suggested penalising entities responsible for delays in operationalisation and incentives for those who fast-track production, in order to improve compliance and efficiency.
“Although policy initiatives and simplification of exploration norms for auction of mineral blocks are in place, the Committee feels that the lengthy process of regulatory clearances, inadequate exploration, forest clearance requirement even at the exploration stage, considerable time lag between auction of mines and their operationalisation, etc., needs to be looked into,” it said.
“In view of these persistent challenges, the committee desires to explore the possibility of setting up an inter-ministerial group for monitoring post-auction progress of both mineral and critical mineral projects with the mandate to fast-track operationalisation of allocated mines,” the report added.
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Recognising the substantial policy reforms implemented between 2015 and 2023 to modernise the country’s mineral sector regulatory framework, the panel said key changes to the Mines and Minerals (Development and Regulation) Act, 1957 included introduction of the auction method for grant of mineral concessions, uniform lease period of 50 years for all leases in place of provision of renewal of lease period, notification of private exploration agencies, and amendments in Offshore Areas Mineral (Development and Regulation) Act, 2002 by introducing auction as the method for allocating operating rights in offshore areas.
Since 2015, 486 mineral blocks have been auctioned, which include 462 by the state and 24 by the Centre.
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