Recently, the Union Cabinet has given its consent to the National Mineral Policy, 2019 (NMP 2019). This new policy emphasizes aspects such as transparency, enhanced regulations & enforcement measures, balanced development, and sustainability.
Purpose of the National Mineral Policy 2019
The objective behind the NMP 2019 is to formulate an effectual, significant, and practicable policy that enhances transparency further, implements better regulation, ensures balanced social and economic growth, and encourages sustainable mining practices.
Details of the National Mineral Policy 2019
The latest version of the National Mineral Policy includes provisions which are expected to stimulate the mining sector. These encompass the promotion of private sector involvement in exploration, initiation of auctions in untapped areas for composite RP cum PL cum ML (reconnaissance permit cum Prospective Licensing and Mining Lease), and providing incentives for merger and acquisition of mining entities. A significant move has been to grant the status of industry to mining activity, thereby boosting financing options for the private sector and enabling acquisitions of mineral assets in other countries by them.
Incentives and Harmonisation
The 2019 Policy proposes to establish a long-term import-export policy for minerals to aid the private sector in planning better and ensuring stability in business. Additionally, the policy outlines efforts to harmonise taxes, levies & royalty with world benchmarks to bolster the private sector.
A “Make in India” Focus and Gender Sensitivity
Featuring prominently in the changes introduced in the NMP 2019 is the focus on the “Make in India” initiative. The vision underlying the policy is gender sensitivity. It intends to attract private investment by offering incentives and maintaining a thorough database of mineral resources.
Distribution and Transportation of Minerals
In NMP 2019, the emphasis is on making use of coastal waterways and inland shipping for evacuation and transportation of minerals. The policy encourages dedicated mineral corridors to facilitate the transportation of minerals.
| Policy Highlights | Description |
|---|---|
| Status of Industry to Mining Activity | Promotes private sector financing and international acquisitions |
| Long-term Import-Export Policy for Minerals | Aids in better planning and ensuring business stability |
| Utilization of District Mineral Fund | Ensures equitable development of project-affected persons and areas |
Inter-Generational Equity and Sustainable Development
The 2019 Policy introduces the concept of Inter-Generational Equity which refers to the well-being of both current and future generations. It proposes the constitution of an inter-ministerial body to institutionalize the mechanism for promoting sustainable development in mining.
Benefits of the New National Mineral Policy
The new National Mineral Policy ensures more effective regulation and envisages a sustainable mining sector development in the future. Moreover, it adequately addresses the issues faced by project affected persons, particularly those dwelling in tribal areas. This policy is a comprehensive approach to ensure responsible usage and management of mineral resources in the country.
