Union finance minister Nirmala Sitharaman on Saturday announced major reforms in the mineral mining sector and said the government would be enhancing private investments and introducing a seamless composite exploration-cum-mining-cum-production regime.
Nirmala Sitharaman said 500 blocks of minerals will be auctioned in a composite exploration-cum-mining-cum-production regime as she announced the fourth set of economic stimulus.
She also said that a joint auction of bauxite and coal blocks would be done to enhance the aluminium industry’s competitiveness. This, she said, will help the aluminium industry reduce electricity costs.
She said the distinction between captive and non-captive mines will be removed to allow the transfer of mining leases and sale of surplus unused minerals, leading to better efficiency and production.
It means mines whose rights have been purchased by one miner for captive purposes can be transferred to another party that wants to take over for a non-captive reason. A captive mine is one in which the miner has to necessarily use the mineral for their own purposes.
Sitharaman said the government will also rationalise the stamp duty payable at the time of award of mining leases.
{{/usCountry}}Sitharaman said the government will also rationalise the stamp duty payable at the time of award of mining leases.
{{/usCountry}}The announcements were part of the fourth tranche details of the Rs 20 lakh crore package announced by Prime Minister Narendra Modi during his address to the nation on May 12, vowing to make India atmanirbhar or self-reliant.
The finance minister held her first press conference to share details of the stimulus package on Wednesday. The second and third phase of announcements on Centre’s economic package were made on Thursday and Friday.
Her last press conference will be on Sunday.