Strategic Action Framework drawn up

By Our Special Correspondent

BANGALORE, DEC. 28. The Department of Mines and Geology has drawn up a Strategic Action Framework to implement the new mineral policy announced recently.

Besides activating mineral exploration in the State, it envisages setting up Single Window Services to encourage domestic as well as foreign investors to set up mineral-based industries.

Mr. V.Muniyappa, Minister for Mines and Geology, told The Hindu that the new mineral policy announced recently would be pursued to exploit mineral wealth in the State to an optimum level. It aimed at tapping mineral deposits by promoting entrepreneurs to invest in mining and mineral-based industries.

Mr. Muniyappa said the Government was thinking of amending the Karnataka Minor Minerals Concession Rules of 1994 to simplify procedures in awarding mining lease and to check unauthorised mining.

The Minister said while exploiting minerals, care would be taken to ensure safety and minimise damage to forest, environment and ecology.

With the opening up of the economy, the Centre had liberalised licences and leases for most minerals except atomic minerals and hydrocarbon energy minerals under the National Mineral Policy of 1993. Under the new policy, 13 minerals, including iron, manganese, gold and diamond were deleted from the list of minerals reserved for exclusive exploitation by the public sector. The ceiling on foreign equity in mining industry had been removed.

Mr. Muniyappa said the State Government intended to take advantage of these changes in mineral policy by amending mining rules. Some of the amendments planned by the State Government included introduction of self-assessment of royalty, granting of mining leases without causing delay, simplified procedures for granting of lease and grant of mining areas and grant of more time for executing the lease with payment of a penalty and other such changes in concession rules.

The Minister said simplification of procedures was one of the basic objectives of the new policy. Under the new procedures, the applicants for lease would not be asked to submit the prospecting report.

Only a report on the availability of the mineral by the geologist concerned would be required to be submitted along with the application.

Another change proposed was automatic renewal of mining leases for up to five hectares area if the land did not fall in the forest area.

Mr. Muniyappa said changes were proposed to favour the applicant in the transfer of a mining lease. No NOC would be required from the departments of Forest or Revenue for transfer of the lease.

The Minister said stringent measures would be taken to check unauthorised mining.

While penalty for unauthorised mining would be increased to Rs. 5,000 from Rs. 1,000, an additional fine for the number of days the illegal mining was carried on would be levied and the imprisonment period would be increased from six months to one year.

Mr. Muniyappa said the new policy emphasised on encouraging the development of mineral-based industries. For obtaining term loans, the investor would be allowed to mortgage leases, and preference would be given to those who were ready to install processing units.

To encourage investors, the Karnataka Industrial Area Development Board had been asked to establish ``mining estates'' under which lease would be granted in clusters mining granite and gem stones.

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