Captive mines get Hoda146;s green signal

The expert committee on mineral policy headed by Anwarul Hoda today gave a thumbs up to captive mines while rejecting the demand of steel plants...

The expert committee on mineral policy headed by Anwarul Hoda today gave a thumbs up to captive mines while rejecting the demand of steel plants being given exclusive allocation of captive mines.

Significantly, the committee has also recommended an amendment in the MMDR Act that would allow the central government to pass an order over-riding a state government which delays clearing of applications for licenses and leases. It, however, says that this should be done only after giving the state adequate time to explain the factors behind the delays.

The committee, which presented its recommendation on the mineral policy, said that it would be in the interest of the country to provide space in the mining regime for both stand-alone mines as well as captive mines. It then adds 8216;8216;8230;it has not accepted the argument of the steel plants for exclusive allocation of mines to them on the ground of limitation of resources.8217;8217;

It however does recommend that 8216;8216;that the resource position should be review after ten years.8217;8217;

These recommendations come at a time when the Orissa government has already told the Korean steel major Posco that they would await the Hoda committee report before they take a final call on the mine allocation to the company. There has been a heated debate over the issue of captive mines between the steel and mining industries.

The report would now be considered by the mines ministry before finalising the mineral policy.

In another critical recommendation, the committee says that mineral-rich states should give preference to those companies that are willing to set up an industry in the state. It, however, adds that if such offers are not made, the state government should not hold back applications expecting that such offers would be made some time in the future.

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Pointing out infrastructure bottlenecks as a factor that hinder investment flows from mining companies, the committee recommends that state governments should set up a mineral development fund by earmarking 15 of the annual royalty collections for the fund. It also says that the Centre would also make a matching contribution to the mineral fund every year.

These funds would then go towards developing of railway projects sidings for instance, road as well port projects that are critical for moving of material.

Finally, the committee said beach-sand minerals such as titanium dioxide should be seen as a metals of the future and should, therefore, be put under Schedule C of the Mines Act. It further adds that mining leases should be given freely for Ilmenite, Rutile, Leucoxene as well as for Titanium Dioxide.