Overhaul mining policy

In a bid to be proactive in mining and to boost investments, the Centre reportedly plans to change some of the extant rules at the margin. Instead of just tweaking the norms, what���s called for is a fundamental overhaul of mining policy so to rev up transparency and efficiency levels right across the board in the minerals economy. Given that the entire sector is rife with routine opacity and we have a perverse ���case-by-case��� approach when it comes to okaying mining proposals, contemplating a series of half-measures and sundry tentative policy steps would hardly do. The move to modify the tortuous process for issuing the no objective certificate (NoC) for undertaking mining activity, for instance, does seem logical, as is the provision to enlarge mining-area size and attendant guidelines. However, the fact is, across minerals and mining segments, there���s much ad-hocism and subjectivity involved, whether it���s foraying into reconnaissance, essaying mineral prospecting or seeking grant of mining lease. The whole process can take any length of time, and there���s policy uncertainty along every step. There���s no real provision for successful reconnaissance leading to a prospecting licence, and on to mining lease.

The environment ministry plans an independent expert body to issue approvals: we urgently need similar institutional reform in mining and minerals. The way ahead is to have a statutory, mutli-disciplinary body to expedite approval for mining investments, based on objective criteria that are forward-looking and research-based. The mining ministry needs to co-ordinate with the state departments to firm up the ground rules ��� and then leave it to the expert body to enforce those rules and recommend mining lease. Further, we need a specialised tribunal for adjudication. In tandem, what���s required is reasonable mineral royalty rates for the states, so that they are ad valorem and linked to the going mineral rates. It���s absurd that the royalty rates for, say, iron ore are as low as Rs 9/tonne. The point is that incremental changes in mining policy would really not deliver the goods, and leave much to be desired. A deep-seated problem surely calls for path-breaking reform.