Instead, Mantralaya sources told The Financial Express that the governmenthas decided to thoroughly examine the policy and give its clearance aftermaking amendment to the original draft prepared by the saffron alliance inJuly this year.

The Sena-BJP alliance had estimated an investment of Rs 10,000 crore inmining development, particularly in the mineral rich Vidarbha region.

Besides, it had predicted a sharp rise in the annual revenue from royaltywhich was given at Rs 265 crore. State government sources said that thepolicy which was to be discussed at Tuesday's cabinet meeting would bediscussed in a couple of days after seeking opinions related to impact ofincentives from various departments. The policy envisages application ofpackage scheme of incentives comprising rebate in sales tax, octroi,electricity duty, financial assistance to carry out feasibility study andspecial capital incentives for small units to the mining sector. The policyhas also suggested a blanket rate of Rs 10,000 for stamp duty and providingan industry status to the mining activity.

However, the state government is believed to have said that these sops canbe considered once the package scheme of incentives would be amendedfurther. The scheme had been given successive extentions by the Sena-BJPgovernment.

Moreover, the then state government had suggested that the loss-makingMaharashtra State Mining Corporation (MSMC) situated at Nagpur should berevived and appointed as a shell agency for the implementation of miningpolicy in the state. However, the new government had taken a seriousobjection to this proposal especially when the decision had already beentaken to close down the MSMC. According to the proposed mining policy,Maharashtra Industrial Development Corporation would do the land acqusitionof the mining purpose while the directorate of geology and mining woulddisseminate information related to mineral pockets.

The previous state government had suggested that the directorate of geologyand mining would be delegated powers to grant permissions for conductingexploration for non-notified minerals.

It had also proposed creation of a mining development fund basically toprovide infrastructure to the developer. The proposed fund would be utilisedfor the purchase of modern equipment needed for the exploration purpose,preparation od data, setting up of mining colonies, afforestation andimplementation of welfare schemes for backward classes. The policy alsoenvisages setting up of a coal washery unit in a bid to preserve environmentand utilise washed coal by the thermal power generation units.