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Source- This post is based on the article “Mines Ministry to Directly Sanction Exploration Projects of Critical Minerals to Notified Private Exploration Agencies” published in “PIB” on 15th December 2023.
Why in the News?
Ministry of Mines has introduced a new scheme. Now exploration projects for critical and deep-seated minerals will be directly sanctioned to Notified Private Exploration Agencies (NPEAs).
What are Critical Minerals?
What are the Policy Changes taken up by the Ministry?
1) The government has taken the recent step–
a. Ministry of Mines will directly sanction exploration projects to NPEAs for critical and deep-seated minerals.
b. It has also allowed these NPEAs to bid for auction for mineral blocks explored by them which was not allowed earlier.
2) Earlier in 2023, the government brought amendment to the MMDR Act through which the Ministry of Mines designated 24 minerals, including graphite and nickel, as critical and strategic. This amendment empowers the Center to issue mineral concessions for these minerals, enabling it to prioritize their auction.
What is the Significance of this New Scheme?
1) The scheme will help cut delays in sanction of projects as well as fast-track execution of projects.
2) It will also attract major mining companies and encourage global junior mining firms to undertake exploration projects in India
3) It will contribute to the infusion of innovative technologies in the field of exploration.
4) It will increase the pace of auction and early production of the critical minerals.
What are Notified Private Exploration Agencies (NPEAs)?
1) The government amended the 1957 Mines and Minerals (Development and Regulation) Act (MMDR Act) through the MMDR Amendment Act, 2021 which empowers the Central Government to identify entities, including private ones, eligible for prospecting operations.
2) In association with QCI-NABET, ministry of Mines will provide accreditation to Private entities. National Accreditation Board for Education and Training (NABET) is a constituent Board of Quality Council of India.
3) Upon accreditation, they should submit their application to the Ministry for notification under the MMDR Act.
4) Based on this, the Ministry of Mines has notified 16 Private Exploration Agencies to take up exploration projects through State Governments, funded by National Mineral Exploration Trust (NMET).
What is National Mineral Exploration Trust (NMET)?
NMET is a statutory body responsible for overseeing the comprehensive operations of the mining sector.
UPSC Syllabus- Indian Economy
