Unveiling India’s Treasure Trove: States Awaken Mineral Exploration With NITS For Critical Resources
(Judicial Quest News Network)
The states of Karnataka, Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh, and Chhattisgarh in India have taken significant steps towards unlocking the potential of critical and deep-seated minerals by issuing Notice Inviting Tenders (NIT) for the auction of Exploration Licences (EL). Here are the key points from the announcement
The Exploration Licence regime was introduced through an amendment to the Mines and Minerals (Development and Regulation) Act, 1957, effective from August 17, 2023, to boost exploration and mining of 29 critical and deep-seated minerals in the country.
Exploration Licences can be granted for minerals specified in the Seventh Schedule through auction, and the process for granting Exploration Licences has been notified through the Mineral (Auction) Amendment Rules, 2024.
States like Karnataka and Rajasthan were the first to notify the auction of Exploration Licences for critical minerals, followed by Maharashtra, Madhya Pradesh, Andhra Pradesh, and Chhattisgarh, expanding the reach of the Exploration Licence regime nationwide.
The NITs issued by these states cover various minerals such as Gold, Copper, Lithium, Rare Earth Elements, Rare Metal, Potash, Lead, Zinc, Diamond, and more.
The Exploration Licence holders will be permitted to conduct reconnaissance and prospecting operations to identify viable mining areas and will receive a share of revenue from the auction premium for 50 years as per the auction bid.
The auction process for Exploration Licences will utilize reverse bidding, where bidders quote the percentage share they will take in the auction premium payable by the Mining Lease holder. The bidder with the lowest percentage bid will be selected as the preferred bidder for the exploration licence.
The efforts by these states demonstrate their commitment to harnessing the potential of critical minerals, boosting economic growth, and advancing the exploration landscape in India.
This initiative is expected to attract private sector participation in the exploration and mining of critical minerals, potentially leading to increased revenue for state governments and overall development in the mineral sector.
