Question

Which of the following options correctly describes the steps taken by the Indian government, as per the new National Mineral Policy of 1993?

• A. The government gave power to private entities to lease and operate mines.
• B. The government allowed private companies to mine for free.
• C. The government encouraged private companies to invest money and use modern technology.
• D. The government allowed the companies to mine the minerals in an unregulated manner.

Answer 1

Answer: (A), (C)

The correct options are
A The government gave power to private entities to lease and operate mines.
C The government encouraged private companies to invest money and use modern technology.

The government gave power to private entities to lease and operate mines. These entities paid a royalty to the government, in return for the right to mine. Thus, the government was able to regulate mining. Further, the government encouraged private companies to invest capital and use modern technology in mining. This resulted in a boom in mining.