Centre frames investor-friendly mining policy

20 March 2008

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.