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Working Group for the formulation of Tenth Five Year Plan (2002-2007)

Mineral Exploration and Development (other than coal and lignite)

Dated 2nd February 2001

Composition:

The Working Group may co-opt such other official(s) as member of the Group as considered necessary. The Working Group may also constitute sub-group(s), if so desired.

II. Terms of Reference :

1. To review the present status of the Indian mineral industry and compare it with the mineral industry of the major competing mineral producing countries in the world for its international competitiveness.
2. To review the present status of the Indian mineral-based industries such as non-ferrous metals, steel, cement industry, etc. including its international competitiveness.
3. To assess the reserves and resources of all ores / minerals (excluding fuel minerals) - both quantitatively and qualitatively in terms of standard terminology and classification of ore reserves and indicate the balance life of the mineral inventory based on the current consumption level of various ores / minerals in producing respective mineral-based industrial output.
4. To assess demand for ores / minerals based on likely growth of the consuming sectors of these ores/minerals such as steel, non-ferrous metals, cement, etc. during the Tenth Plan period and in the perspective of 15 years thereafter taking into account likely growth scenario of GDP at 9% per annum during the 10th Plan period. Also work out this scenario at GDP growth rates of 8%, 7% and 6.5% per annum.
5. To suggest the manner in which it would be optimum to meet the demand of the output based on ores / minerals identified above i.e. if we are internationally competitive indigenous production would be the option; in case we are not so placed, the imports will be the option. While doing so, in case we are internationally competitive in producing say finished steel or aluminum, suggest also the level of domestic production for export keeping in view availability of infrastructure like rail, road, ports, power, etc. Accordingly, suggest year-wise output during the 10th Plan period and in the perspective of 10 to 15 years thereafter.
6. Suggest down-stream products of aluminum, copper, lead and zinc as well as steel that we should manufacture, if internationally competitive, including for exports and also give year-wise production during the 10th Plan period and in the perspective of 10 to 15 years thereafter.
7. Based on the projections of output, during the terminal year of the 10th Plan as well as in the perspective of 10 to 15 years thereafter, assess the reserves and resources of ores / minerals and indicate the balance life of the mineral inventory on the consumption level of the terminal year of the 10th Plan.
8. To indicate levels of exploration, ore/mineral-wise, that will be required to be carried out during the 10th Plan period and in the perspective of next 10 to 15 years for augmenting the Mineral Inventory for producing the projected output.
9. To identify problems, if any, in compilation of mineral inventory, bring out the gaps in the existing system and suggest measures for making the national mineral inventory more user-friendly and attractive particularly for minimizing time lag between resource appraisal and commercial exploitation of minerals including for attracting foreign direct investment in mineral exploration.
10. To carry out a comparative study of costs involved in surveys and mineral exploration in major competing mineral producing countries abroad vis-a-vis our costs and identify areas for improvement.
11. To identify technological gaps in mineral exploration and suggest measures for filling up these gaps including through, foreign direct investment.
12. To assess the export potential of ores / minerals in India including non-metallic minerals such as granite, marble, high value decorative stones based on the present reserves of these minerals and suggest further area and mineral-wise exploration programme during the 10th Plan period and in the perspective of 10-15 years thereafter for increasing our share in the world trade of these minerals.
13. To suggest alternative options of exporting minerals either in the raw form, semi-processed or processed forms for maximizing foreign exchange earning apart from creating more jobs, domestically.
14. To review the present mineral-wise status of those minerals in which our present resource-base is poor and suggest exploration programme for the 10th Plan and in the perspective of 10 to 15 years for increasing the resource base of these minerals.
15. To examine the present tax and tariff structure of the mining industry including royalty, dead rent, State taxes, etc., periodicity of the revision of royalty and dead rent and compare it with what is obtainable in the competing major mineral producing countries. Suggest internationally comparable tax regime for ores/minerals so that the Indian mining industry gets a level playing field for competing with imports.
16. To review the present role of various State institutions like GSI, IBM, State Directorates of Geology and Mining, etc. and suggest changes and modifications in their role so that these institutions can become very effective in facilitating growth of the internationally competitive private sector mining industry in India.
17. To examine the possibility of converting IBM into a regulatory authority for the mining industry for overseeing the growth of private sector investment including foreign direct investment in the mining industry apart from performing the present role of ensuring scientific mining, conservation of scarce mineral resource, checking externality arising from exploration and mining, etc.
18. To review the MMRD Act, 1957 and as amended in 1999 and various Mineral and-Conservation and Concession Rules and Procedures as well as Indian Mines Act, : 1952 and compare these Acts, Rules and Procedures with what is obtainable in the competing major mineral producing countries. Suggest changes / modifications in these Acts, Rules and Procedures for facilitating quick growth of the private sector mining \ industry in India, particularly FDI in the mining sector.
19. To review the present indigenous R and D set up in the mining sector, particularly the success it has achieved in developing newer technologies for exploiting commercially lean grade ores / minerals, of which substantial reserves are available. Also review the present R and D-Industry-lnstitutional mechanism in the mining sector, particularly in developing internationally competitive newer technologies including for beneficiation of low grade ores / minerals. Suggest measures to strengthen the R and D set up, particularly R and D-lndustry-lnstitutions Linkages including with similar institutions abroad.
20. To identify minerals required for the production of high purity materials for use in electronics industry and other newly emerging technologies (semi-conductors, photo-voltics, lasers, special sensors, high temperature composites, super-conductors, insulators, very thin films, glasses and liquid crystals, filters, catalysts, membranes, metal and mineral-fibres, inter-metallics, super-alloys, etc.) and review the present status of Mineral Inventory of these minerals and suggest exploration programme for augmenting the inventory of these minerals during the 10th Plan period in the perspective of 10 to 15 years thereafter, if found necessary.
21. To suggest what promotional role both the Central and State Governments should play in the present policy dispensation for mineral exploration particularly for those minerals in which the present resource base is very poor and for the development of which private sector may be reluctant to invest.
22. To assess the existing employment and the additional employment that will be created in the mining sector during the 10th Plan period and in the perspective of 10 to 15 years thereafter.
23. To assess year-wise demand of various types of explosives and other inputs -both indigenous and imported - for exploration and mining programmes during the 10th Plan period and suggest the manner in which to meet the demand keeping in view international competitiveness of the indigenous production of these inputs vis-a-vis imports.
24. To assess year-wise requirement of infrastructure such as power, water, communications, roads, ports and railways (both physical and financial) for the mining sector during the 10th Plan period and in the perspective of 10 to 15 years thereafter.
25. To assess the present deposit / mine-specific infrastructure gaps and identify the additional requirement of this type of infrastructure during the 10th Plan period and in the perspective of 10 to 15 years thereafter. Suggest the manner in which to fill up the existing gaps and build up additional infrastructure that is so projected. Particularly, indicate what role the Central Government and the State Governments as well as the private sector mining industry should play in creating this infrastructure.
26. To assess constraints and problems encountered in harmonizing mineral development with the environment and forest policy(s) and laws and suggest changes / modifications, if any, for facilitating private sector investment in the mining sector, particularly FDl.
27. To examine the impact that the Samatha Judgment would have on the present mines and mineral-based industries located in the Fifth Schedule areas of the country, if the judgment is implement and suggest measures that need to be taken to avert the situation and at the same time safeguarding interests of the tribals in these areas of the country.
28. To review the status of small-scale mining in the country including aspects such as exploration, mineral processing and developing of mines, financing investment, workforce requirement including the role that the Panchayat Raj institutions could play in facilitating development of an internationally competitive small-scale mining sector in India.
29. To assess the present status of training and development infrastructure for human resources for the mining industry and suggest measures to strengthen and augment this for making available skilled work-force for the growing indigenous mining sector during the 10th Plan period and in the perspective of 10 to 15 years thereafter.
30. To review the present status of the down-stream mineral-based industry and assess its growth during the 10th Plan period and in the perspective of 10-15 years thereafter.
31. To assess and indicate investment that would be required to be made during the 10th Plan period and in the perspective of 10 to 15 years thereafter in exploration, opening up new mines, setting up mineral-based units, in down stream units, deposit / mine-specific infrastructure and in related units that would provide inputs for mineral exploration and mining such as explosives and other inputs provided such units are internationally competitive including joint ventures, foreign direct investment, Indian private sector investment, etc.
32. To assess and indicate investment that would be required to be made by the Central and State Governments for promotional exploration, if deemed necessary to be earned out as a matter of national policy.
33. To review the existing mechanism for planning, implementation and monitoring of mineral exploration and development programmes and suggest changes/modifications and related measures for carrying out these programmes in a time bound, result oriented and cost effective manner.
34. To make such other recommendations as are considered appropriate.

The expenditure on TA/DA of official members in connection with the meetings of the Group will be borne by the parent Department/Ministry to which the official belongs. Non-official members of the Group will be entitled to TA/DA as admissible to Grade-I officers of the Government of India and the same will be paid by the Planning Commission.

The working group will submit its report positively by 30^th June, 2001.