Streamlining India's Mineral Sector: A Call for Inter-Ministerial Oversight

A Parliamentary Panel recommends establishing an inter-ministerial committee to expedite post-auction progress and operationalisation of mineral projects, highlighting delays between mine auctions and operations. Rightsizing statutory clearances for critical mineral endeavors is emphasized, alongside updating the regulatory framework to boost India's mineral sector efficiency.

A recent report by a Parliamentary Panel has underscored significant delays between mine auctions and operationalisation, urging the government to consider establishing an inter-ministerial committee. The aim is to efficiently oversee post-auction progress for both mineral and critical mineral projects, ensuring a more streamlined process from auction to operational status.

The report emphasizes the need to prioritize statutory clearances for critical mineral projects. Although there have been noticeable policy efforts to simplify exploration norms and auction processes, the committee noted enduring challenges. Specifically, lengthy regulatory procedures, inadequate exploration, and forest clearance needs pose significant barriers.

The committee's findings, part of the report titled 'Self-Reliance in Minerals and Metals', also call for potential penalties for delayed operations and incentives for fast-track production. This approach aims to enhance compliance and encourage quicker development, building upon substantial policy reforms in India's mineral sector since 2015.

(With inputs from agencies.)