Union minister for steel and mines, Naveen Patnaik, told the mineral advisory council at its 25th meeting on Monday, that the panel would examine the existing tax regime and suggest a tax structure conducive to rapid development of minerals and mineral-based industries.

He pointed out that the royalty rates for minerals had already been rationalised and brought in line with international rates. The minister told the congregation of mining officials of state governments and representatives of the mining industry, that steps were already afoot to bring about new legislation on mining laws. The Union Cabinet has recently approved a further amendment of the Mines and Minerals (Regulation and Development) Act, to simplify mining procedures and delegate more powers to the state governments.

The mineral advisory council was set up in January this year and has aduration of four years. The council is forum for exchange of views among the mining industry, the state governments and the Centre on issues concerning the mining and minerals industry.

Patnaik said the Ninth Plan had given importance to mineral exploration by government agencies. The Geological Survey of India (GSI) and the Mineral Exploration Corporation Limited (MECL) alone will spend Rs 1,300 crore on mineral exploration during the Plan period.

The Ninth Five Year Plan focuses was on exploration of gold, base metals, diamond, tin, tungsten, molybdenum, ferrous minerals, limestone, dolomite, dimensional stones, platinum and rare earth minerals. So far, the Centre has approved 48 aerial surveys by mining companies over 67,000 sq km of area in Rajasthan, Gujarat, Uttar Pradesh, Bihar and Maharashtra for precious minerals like gold, silver, base metals and nickel.

According to an official release, minister of state for steel and mines, Ramesh Bais called for better management of the country's mineralresources.

The Federation of Indian Mineral Industries' president, S V Salgaocar, called for a change of attitude at the ground level along with legislative changes in mining procedures like prospecting, exploration and exploitation.