The government on Friday launched a new scheme to directly sanction exploration projects to Notified Private Exploration Agencies (NPEAs) for critical and deep-seated minerals.
Additionally, it has also allowed these NPEAs to bid for auction for mineral blocks explored by them, which was earlier not allowed.
The government in 2021 had amended the MMDR Act, empowering the central government to notify entities, including private entities, that may undertake mining operations.
Since March 2022, the government has notified 16 private exploration agencies to take up exploration projects through state governments, it said.
“Since then, only 17 projects to five NPEAs for Rs.15.88 crore have been sanctioned from NMET (National Mineral Exploration Trust) funds. Out of 17 projects sanctioned so far, 11 are of critical minerals,” the government said.
The government had recently put up 24 critical minerals on auction including graphite, nickel, potash, and others, notifying them as critical and strategic minerals through another amendment in the MMDR Act done in August.
The amendment had also conferred power to the central government to grant mineral concession of the critical minerals and prioritize auction of these minerals.
“As these critical minerals are indispensable for the growth of our economy, authorising the central government to auction concession for these critical minerals would increase the pace of auction and early production of the minerals,” the government said.
The move is likely to cut out delays in sanction of projects and to help in faster execution of these. The government aims at attracting bigger companies in mining for exploration of these minerals with this announcement.
“This provision is also expected to encourage junior mining companies from around the world to come to India and take up exploration projects with NMET funding,” it said.