The proposed national mineral policy is likely to incorporate a number of policy reforms such as reforming mining taxation and generating a database on the reforms undertaken by many countries in Latin America, Africa, Eastern Europe as well as Central Asia.
The government is expecting at least $2 billion FDI in the country once the new policy being considered gets the parliament nod.
?We have already opened the mining sector with 100% FDI allowed for all the activities such as prospecting, exploration and mining. We are now focusing on incorporating reforms which have been very successful in Latin America, Africa, Eastern Europe and Central Asia,? a senior government official told FE.
?As a first step we are reforming mining taxation so as to make it internationally comparable with world standards,? he added.
The group of minister (GoM) on mining policy has recommended royalty to be charged on ad-valorem basis rather than the now prevalent per-tonne basis for most minerals. The proposed royalty is in line with the norms prevalent in Australia. This is likely to bring more revenues to states.
Also, government plans to provide a level-playing field for all. ?There will be no discrimination between public and private sector companies while considering leases. The states? role as a producer will be entirely independent of their role as the regulator,? said a senior official.
Moreover, government is also planning to create a database of various minerals so that their exact reserves are known. The Indian Bureau of Mines is already working in this direction and database is likely to be ready by the end of next year.
Additionally, government also plans to constitute empowered-cum-coordination committees (ECCs) to ensure expeditious grant of mining concessions which will include representation from both central and state governments.