Govt for expeditious grant of mining concessions

NEW DELHI: The Mines Ministry has proposed that central and state governments should constitute empowered-cum-coordination committees (ECCs) to ensure expeditious grant of mining concessions.

"These committees will comprise representatives from all the concerned agencies and expedite grant of concessions," a top ministry said.

He said the system for application of concessions would be hitherto on-line to reduce time-delays.

The ministry has pointed out the need to unbundle the current system of granting concessions and make it seamless to attract risk capital and new technology in the mining sector, the official said.

The ministry favours replacing "the existing instrument of the Exclusive Reconnaissance Permit with the Large Area Prospecting Licence to enable investors to spend on exploring large greenfield areas."

It also supports auction of areas prospected through government funding and on which mining lease has not been sought, in the interest of transparency and earning revenue for the states, the official said.

He said the intention behind the move is better price discovery. "After fixing a floor price, preference could be given to value adders" while granting the concessions, the official added.