At a Central Bureau of Investigation (CBI) meet on curbing crime and corruption, the minister said the government was the sovereign guardian and custodian of the country's natural resources.
"There may, therefore, be some scope for judgmental discretion and scope for malpractices in the implementation of policies.
"Anti-corruption agencies need to build better understanding of the nuances of policy implementation and decision making," Sibal said.
The government is facing flak over alleged irregularities in the allocation of coal blocks.
The govt is facing flak over irregularities in the allocation of coal blocks.
"The exploitation of these natural resources is necessary for deriving value and creation of economic wealth," the minister said.
"In doing so, the government has to ensure that the exploitation of natural resources is consistent with the twin objectives of protecting the larger public good and the ecology and the environment."
Sibal said: "The latest technologies for the exploitation of most natural resources are monopolistically held by large multinational corporations, and the government has to strike a fine balance between private and public good in framing policies for exploitation of natural resources."