Mumbai: The government has tabled in Parliament a new mining policy that is more investor-friendly and offers faster clearance of mining leases and extended lease periods.

The new policy aims to shorten the time taken for granting mining leases to about six months to a year.

The document, tabled in Parliament today, however, makes no specific changes in royalty payments as demanded by mineral-rich states.

"The revenues from minerals will be rationalised to ensure that the mineral-bearing states get a fair share of the value of minerals extracted from their grounds," the policy document said.

State governments have been demanding a flat rate of royalties based on the value of the minerals that would increase revenues from their natural resources.

The new mining policy, approved by the cabinet last week, will have to be debated in Parliament as it requires an amendment to the existing mining laws.

Central and state government officials are due to meet in about 10 days to decide on royalties to be charged under the new policy.

The new policy will make investments in the exploration and mining of gold, diamonds and metals like copper and zinc with licences available through the automatic route for prospecting companies. It also allows leaseholders to trade licences freely.

"Prospecting and mining shall be recognised as independent activities with transferability of concessions playing a key role in mineral sector development," the draft document said.

While state-owned companies would continue to undertake exploration and survey of minerals, the government said it would give encouragement to private sector investment.