Despite several reforms attempts and steps to provide the mining industry in the country with a much-needed boost, the sector has not been able to perform up to its potential. Inordinate delays at various levels have meant that for the first quarter of April-June, 2008 of 278 reconnaissance permits (RP) granted, two applications were received for conversion into prospecting license (PL) and only one prospecting licence has been converted to mining lease.
Sources said in case of conversion of RP into PL, only five conversions have taken place from the 53 applications originally received during the quarter. The Indian Bureau of Mines (IBM) has been entrusted with the task of monitoring the RP/PL/ML holders in a time-bound manner so that it would be known as to how many RPs were converted into PLs and thereafter MLs.
Sources said as per IBM’s status report the conversion rate of RP to PL/ML has been woefully slow.
The probable reasons for such delays can be non-uniformity in accepting the applications centrally at the department of mines and geology (DMG) level of the state governments as these are sometimes accepted at the district level.
Lengthy procedures adopted for processing applications and also considerable time required for revenue and forest clearances are also contributing to the dismal rate of conversion.
Selection of applications for grant of mineral concessions in multiple application cases is almost always disputed giving rise to litigation and delays, sources said.