National Mineral Policy, 2019

Why in news?

The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved National Mineral Policy 2019. 

Why the need for new policy (replacing NMP, 2008)?

National Mineral Policy 2019 replaces the extant National Mineral Policy 2008 ("NMP 2008") which was announced in the year 2008. The impetus to review NMP 2008 came about by way of a direction from the Supreme Court judgment dated 02.08.2017 (Common Cause v/s Union of India & Others).

In compliance of the directions of the apex Court, the Ministry of Mines constituted a committee on 14.08.2017 under the chairmanship of Dr. K Rajeswara Rao, Additional Secretary, Ministry of Mines to review NMP 2008.

The Ministry of Mines accepted the committee Report and Departments the Ministry of Mines finalized the National Mineral Policy 2019.

What are the objectives of the policy?

The aim of National Mineral Policy 2019 is to have a more effective, meaningful and implementable policy that brings in further transparency, better regulation and enforcement, balanced social and economic growth as well as sustainable mining practices.

Besides, the Policy aims to-

• Ease merger and acquisition of mining entities
• Attract private sector participation in exploration
• Allow transfer of mining leases
• Create dedicated mineral corridors

What will the benefits emanating from that?

• The New National Mineral Policy will ensure more effective regulation.
• It will lead to sustainable mining sector development in future while addressing the issues of project affected persons especially those residing in tribal areas

What are the important provisions under the policy?

1. Introduction of Right of First Refusal for RP/PL holders.
2. Encouraging the private sector to take up exploration.
3. Encouragement of merger and acquisition of mining entities.
4. Creation of dedicated mineral corridors to boost private sector mining areas.
5. The 2019 Policy proposes to grant status of industry to mining activity to boost financing of mining for private sector and for acquisitions of mineral assets in other countries by private sector.
6. It also mentions that Long term import export policy for mineral will help private sector in better planning and stability in business.
7. The Policy also introduces the concept of Intergenerational Equity