Working Groups for the Eleventh Five Year Plan (2007-2012)

Mineral Exploration and Development (other than coal and lignite)

Dated 6^th March, 2006

It has been decided to constitute a Working Group on Mineral Exploration and Development (other than coal and lignite) for the Eleventh Five Year Plan (2007-2012).

2. The Composition and Terms of Reference of the Working Group would be as follows:

Composition

3. Terms of Reference

1. To review the present status of Indian mining industry (excluding fuel minerals) and mineral based industries in India and to assess its international competitiveness.
2. To assess the reserves and resources of all ores/minerals (excluding fuel minerals) as per UNFC guidelines.
3. To review the mineral inventory for identifying gap areas and to suggest corrective measures and to assess the balance life of mineral inventory based on current consumption level of various ores/minerals and evolving a strategy for development and conservation in perspective of 10 to 15 years.
4. To assess demand for ores/minerals and its likely growth during 11^th plan period and in perspective of 15 years accounting for the GDP growth rate of 8%. Also to workout scenario at 9%, 10% and 7% per annum GDP growth rate.
5. To assess demand of ores/minerals with respect to domestic and international markets and assessment of potential of ores/minerals in terms of export as raw material or as value added products.
6. To draw up an exploration strategy for regional and detailed exploration of ores/minerals keeping in view the national priorities, demand (domestic and global), consumption and availability of resources.
7. To identify technological gaps in mineral exploration and suggest measures for filling up the gaps and also to suggest measures for making it competitive globally.
8. To examine the present tax and tariff structure of the mining industry and to suggest internationally comparable tax regime for ores/minerals.
9. To review the present role of various State institutions like GSI, IBM, and 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 mining industry in India.
10. To review the present indigenous R and D set up in mining sector and to suggest strategy for exploiting and beneficiating lean grade ores. Measures for adopting state of the art technology in production and beneficiation etc.
11. To identify minerals required for production of high purity materials for use in electronics and other newly emerging technologies and review the present status of mineral inventory of these minerals and suggest exploration strategy for augmenting the inventory during XI plan period in the perspective.
12. To suggest what promotional role both the Central and State Governments should play in the present policy dispensation of mineral exploration particularly for those minerals in which the present resource base is poor and for the development of which private sector may be reluctant to invest.
13. To review the availability and requirement of human resource in mining sector during the XI plan period and in perspective of 10 to 15 years and to suggest measures for capacity building by training and development of infrastructure. To also suggest strategy for modernization, updating of curriculum and technology.
14. 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 XI plan period and in the perspective of 10 to 15 years thereafter. To suggest measures to fill up the existing gaps and building up of additional infrastructure. To define the roles of the Central Government, the State Governments and the private sector in creating such infrastructure.
15. To assess constraints and problems encountered in exploration and exploitation of mineral resources in tribal, forest areas and to suggest measures in harmonizing mineral development with environment and forest tribal policy and laws and to suggest changes, if any.
16. To assess and indicate investment including FDI that would be required to be made during the XI plan period and in the perspective of 10 to 15 years thereafter in exploration, opening up new mines, setting up mineral based units, deposit/mine-specific infrastructure and in related units.
17. 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 carried out as a matter of national policy.
18. To assess possibility of zonation of mineral resource bearing areas as 'mineral belts' for speedy exploitation of proven and economically viable mineral deposits.
19. To examine the impact of the Supreme Court verdict in the T.N. Godavarman Thirumulpad case, on assessment of Net Present Value (NPV) payable for use of forest areas for non-forest purpose, including exploration and mining activities, and to suggest measures for safeguarding the interests of the small miners.
20. To assess the magnitude of rehabilitation and reclamation needed for abandoned or closed mines before the concept of mine closure plan and financial assurance came into being and to suggest appropriate plans for reclamation and rehabilitation for such mines to give eco-friendly image to mining industry.
21. To examine the impact that the Samatha Judgement would have on the present mines and mineral-based industries located in the Fifth Schedule areas of the country, if the judgment is implemented and to suggest measures that need to be taken to avert the situation and at the same time safe guarding interests of the tribals in these areas of the country.
22. To examine and assess the socio-economic impact of mining on the life of local inhabitants and to suggest ways and means for improving their living standard.
23. To examine and suggest the role of educational/research institutes in minerals development in the country.
24. To make such other recommendations as may be considered appropriate.

4. The Chairman of the Working Group may co-opt other officials or non-officials as Members, if considered necessary.

5. The expenditure on TA/DA of official members in connection for attending meetings of the Working Group will be borne by the respective parent Department/Ministry to which they belong as per the rules applicable to them. Non-official members of the Group will be paid TA/DA by the Planning Commission as per SR 190(a) as admissible to Grade-I officers of the Government of India.

6. The Working Group will submit its report by the end of June, 2006.