Question

The Mining sector in India is infamous for human rights violations and environmental pollution. In this context discuss the provisions of the National Mineral Policy, 2019. How it will lead to sustainable mining sector development?

Answer 1

Approach:

• You can start with highlighting the importance of mining sector for economy and its present day challenges.
• Discuss aims, objectives and several provisions of National Mineral Policy, 2019
• How National Mineral Policy, 2019 will lead to sustainable mining sector development?

India’s mining industry is an increasingly important part of the economy, employing hundreds of thousands of people and contributing to broader economic growth. But mining can be extraordinarily harmful and destructive if not properly regulated—as underscored by a long list of abuses and disasters around the world. And because of a dangerous mix of bad policies, weak institutions, and corruption, government oversight and regulation of India’s mining industry is largely ineffectual.

In light of the above problems the government drafted the New National Mineral Policy to ensure more effective regulation that leads to sustainable mining sector development in future while addressing the issues of project affected persons especially those residing in tribal areas.

The aim of National Mineral Policy 2019 is to have a more effective, meaningful and implementable policy that brings in further transparency, better regulation and enforcement, balanced social and economic growth as well as sustainable mining practices.

The National Mineral Policy 2019 includes provisions which will give boost to mining sector such as

• introduction of Right of First Refusal for RP/PL holders,
• encouraging the private sector to take up exploration,
• auctioning in virgin areas for composite RP cum PL cum ML on revenue share basis,
• encouragement of merger and acquisition of mining entities and
• transfer of mining leases and creation of dedicated mineral corridors to boost private sector mining areas.
• The 2019 Policy proposes to grant status of industry to mining activity to boost financing of mining for private sector and for acquisitions of mineral assets in other countries by private sector
• It also mentions that Long term import export policy for mineral will help private sector in better planning and stability in business
• The Policy also mentions rationalize reserved areas given to PSUs which have not been used and to put these areas to auction, which will give more opportunity to private sector for participation
• The Policy also mentions to make efforts to harmonize taxes, levies & royalty with world benchmarks to help private sector

Among the changes introduced in the National Mineral Policy, 2019 include Inter-Generational Equity that deals with the well-being not only of the present generation but also of the generations to come and also proposes to constitute an inter-ministerial body to institutionalize the mechanism for ensuring sustainable development in mining.