Mining Policy

India has newly proposed a mining policy which aims to curtail illegal mining and empower people settled in and around mining areas. The new Bill proposes that companies share 26% of the profits from mining with the locals who lose land. The Bill seeks to expedite the grant of mineral concessions in a transparent manner and attract big investments in the sector.

In March, the Environment Ministry had marked as 'no-go' areas 155 coal blocks in nine coal fields that were intended to cater to 10 major power plants.

This had triggered a conflict between the Ministries of Environment and Coal, with the latter saying it would slow down power generation as the banned coal blocks had potential of producing about 660 million tonnes.

The ministry had contended that mining should be banned only in the cases of "pristine forests or wildlife sanctuaries."

The country has about 40 coal-based power plants, accounting for about 70 per cent of 162,366 MW of electricity production.

The current production of coal is about 530 million tonnes and the government is of the view that it needs to be doubled in the next six to seven years as the demand for power is going to increase manifold.

The protagonists in the government argue that coal reserves are usually located in forest areas and a way has to be found to mine these without affecting the ecology, including trees and wildlife.

This can be done by reclaiming and afforesting the pieces of land where mining is undertaken and completed and the process could be carried out in a phased manner, the sources said.

source: http://www4.economictimes.indiatimes.com/news/economy/policy/reworked-policy-on-mining-to-be-unveiled-soon/articleshow/6630595.cms