'National Mining Policy 2008' broadens investents opportunity

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New Delhi, Apr 10 (UNI) In an attempt to attract investment both domestic and FDI, the new National Mineral Policy 2008 seeks to introduce seamless transition, transferability of mineral concessions and transparency in allotment of concessions.

Announcing the details of the policy here, Minister of Mines Sis Ram Ola said the new policy suggests measures like seamless transition, transferability of mineral concessions and transparency in allotment of concessions to reduce delays and discretionary powers which are seen as impediments to investment and technology flows in the mining sector in the country.

Expressing satisfaction over the National Mineral Policy, 2008, Mr Ola said, ''it will help bring more foreign direct investment (FDI) in the country.'' The policy, which the Minister said will be passed in the coming session of Parliament, also seeks to develop a sustainable framework for optimum utilisation of the country's natural mineral resources for the industrial growth in the country and improving the life of people living in the mining areas, which are generally situated in the backward and tribal areas of the country.

It promotes auction of ore bodies fully prospected at public expense for transparency in allotment, recovery of cost of exploration borne by the government and generate additional resources for the states.

The new policy allows state governments to give preference to a 'value adder' in case of multiple applicants for a concession subject to other eligibility requirements. At the same time state governments cannot hold back grant of mineral concession if no 'value adder' is available.

Mr Ola said the new policy will help promote welfare of the local community and mainstreaming of the people in mining areas situated in backward and tribal areas, as mining firms will have to spend a percentage of turnover on social infrastructure as Corporate Social Responsibility (CSR).

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