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Know how Central Government implements National Mineral Policy

In pursuance of the reforms initiated by the Government of India in July, 1991 in fiscal, industrial and trade regimes, the National Mineral Policy was announced in March, 1993. The National Mineral Policy recognized the need for encouraging private investment including Foreign Direct Investment (FDI), and for attracting state-of-art technology in the mineral sector. The policy stressed that the Central Government, in consultation with the State Governments, shall continue to formulate legal measures for the regulation of mines and the development of mineral resources to ensure basic uniformity in mineral administration so that the development of mineral resources keeps pace, and is in consonance with the national policy goals.

Mining activity is an intervention in the environment and has the potential to disturb the ecological balance of an area. However, the needs of economic development make the extraction of the nation’s mineral resources an important priority. A framework of sustainable development will be designed which takes care of bio diversity issues and to ensure that mining activity takes place along with suitable measures for restoration of the ecological balance.


  • Regulation of Minerals: The Central Government in consultation with State Governments shall formulate the legal measures necessary for giving effect to the new National Mineral Policy, 2008, to ensure basic uniformity in mineral administration across the country and to ensure that the development of mineral resources keeps pace, and is in consonance with the national policy goals.
  • Role of State in Mineral Development: The role to be played by the Central and State Governments in regard to mineral development has been extensively dealt in the Mines and Minerals (Development and Regulation) Act, 1957.The provisions of the Act and the Rules will be reviewed and harmonised with the basic features of the new National Mineral Policy. In future the core functions of the State in mining will be facilitation and regulation of exploration and mining activities of investors and entrepreneurs, provision of infrastructure and tax collection.
  • Survey and Exploration: The Geological Survey of India is the principal agency for geological mapping and regional mineral resources assessment of the country. It shall be responsible for drawing up action oriented plans.
  • Database of Mineral Resources: In coordination with Geological Survey of India, the Indian Bureau of Mines will maintain a database in digitised form comprising both a Resource Inventory and a Tenement Registry.
  • Strategy of Mineral Development:
  • General Strategy: The guiding principle in the strategy of development of any mineral or mineral deposit at any location shall ordinarily be the economic cost of recovery i.e extraction cost relative to market price and will hence be determined by the market.
  • Consevation and Mineral Development
  • Scientific method of mining:
  • Mining as an Industry with linkage
  • Mining Equipment and Machinery
  • Manpower Development
  • Infrastructure Development
  • Financial Support for Mining
  • Small Deposits
  • Mineral Development & Protection of Environment
  • Relief & Rehabilitation of Displaced and Affected Persons
  • Mine Closures
  • Mine Safety
  • Foreign  Trade : Minerals continue to be an important source of foreign exchange earnings. The policy of export shall keep in view the dynamics of mineral inventories as well as the short, medium and long term needs of the country. Efforts shall be made to export minerals in value added form as far as possible.
    The import of mineral based material shall be coordinated as far as possible with the indigenous development of mineral based industries.A long term export policy would provide stability and prove to be an incentive for investing in large scale commercial mining activity.
  • Fiscal  Aspects : Changing mineral scenario and the economies of mineral development and products, both at the national and international level fiscal changes will be examined from time to time consistent with the general tax structure and through the normal budgetary process. Mineral prices should reflect their value and the royalty structures will be designed to ensure that the producer earns and the consumer pays the true value of the minerals produced and consumed.
  • Research and Development :
  • General Approach: Research and development in the mineral sector has to cover the entire gamut of activities from geological survey, exploration, mining, beneficiation, concentration of minerals to development of materials. Efforts will be directed towards the development of new technologies for conversion of existing mineral resources into viable economic resources.
  • Research in Mining Methods
  • Mineral Processing and Beneficiation
  • Development Of Automated Equipment
  • Deep Sea Mining
  • Production Of Materials Of High Purity
  • Coordination Of Research Organisations

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Just like an iris controls the light levels inside the eye making it possible for us to see the outside world, The Indian Iris aims at shedding light on the ongoing political affairs, policies and schemes of the Government of India (GOI) and those of the State Governments.

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