Differences between the Centre and the iron-ore rich states over auction of mines could result in few changes in the proposed mineral policy before it is sent to the Cabinet for its nod. The group of ministers (GoM) headed by home minister Shivraj Patil recently approved the draft policy.
Even as the mines ministry has not finalised any date as to when the draft would be sent before the Cabinet, indications are that it could happen ?very soon?.
Evading a question on the specific changes that are likely to be made in the policy, secretary mines JP Singh said, ?The policy aims at addressing reasonable demands of the industry and would be placed before the Cabinet soon?.
Issues such as auctioning of mines have to be sorted. There has to be a balance between the Centre and the states on the issue as it favours the states but the Centre absolutely has no role in it, Singh said.
The proposal is largely aimed at minimising the delays and redtapism while granting mining licences.
The mining industry feels that auctioning of blocks makes no sense where the prospecting has not been done.
?Auctioning of mines makes sense only after the prospecting is over. There are, however, very few cases where the prospecting has been done,? president Federation of Indian Mineral Industries (Fimi) Rahul Baldota said.
After the turnaround of the steel sector iron-ore prices are at an all time high, but the sector has been hit hard by some controversial decisions like export duty on iron ore, secretary general Fimi RK Sharma said.
?Export is a compulsion for the mining industry as the domestic steel industry is not in a position to utilize the resources. In the given circumstances steps to curb ore exports are simply illogical,? Sharma added. According to Digambar Kamat, chief minister Goa the industry is yet to be treated with respect by the policymakers. ?Do no slow poison the mining industry. Stop it in one go, if you wish to stop it.?
?(Travel for the story was sponsored by Fimi)