MINERAL DEVELOPMENT

AN OVERVIEW

     

1.1 GENERAL

Rajasthan has a glorious heritage in the field of mines and minerals. The State is geologically so endowed that it has become a veritable repository of minerals. Important minerals with which the name of this State is intimately associated are that of non- ferrous metals (lead, zinc and copper) and ferrous minerals such as tungsten and a number of industrial minerals. Presently, the State is the sole producer of jasper and wollastonite and a leading producer of cement and steel grade lime stone, soapstone, ball clay, calcite, felspar, natural gypsum, kaolin, rock phosphate, ochre and building stones besides, tungsten, lead-zinc concentrates, and copper metal.Table 1 shows the minerals found in Rajasthan which account for 70 percent or more of India?s total production.

TABLE 1

MINERAL PRODUCTION IN RAJASTHAN

PERCENTAGE CONTRIBUTION

At present abount 42 varieties of major minerals and 23 varieties of minor minerals are being produced in the State. In the field of minor mineral particularly, of dimensional and decorative stones such as marble, Kota stone, and sand stone, the State occupies a unique a unique position by contributing about 30% of the total value of minor minerals being produced in the country.

Presently 1324 mining leases of major minerals, 10851 mining leases of minor minerals and 19251 quarry licences are in force.

The State has the largest number of small mining leases in the country. It lanks significant deposits of iron ore, bauxite, chromite, manganese, coal and petroleum. In terms of the total value of India?s mineral production in the country, the State contributes 5.74% of the total value and occupies the 5th position after Bihar (13.09%), Madhya Pradesh (9.68), Gujrat (8.55%), and Assam (7.3%).

Large workable reserves of lignite have been identified and proved. Their exploitation is likely to begin very soon and thereafter, the State's position would significantly improve.

Since 1949, Significant changes have taken place in the field of mineral development, which is evident from the following facts :

(a) During 1950, only 15 types of major minerals and 6 minor minerals were produced. During the last four decades many new mineral deposits have been discovered. Today, about 42 major minerals and 23 minor minerals are being exploited in the State.

(b) In 1950, there were 50 major minerals leases and 1200 rent-cum-royalty leases. Their number increased to 1324 major mineral leases, 10851 minor mineral leases and 19251 quarry licences in 1993.    

(c) The value of minerals produced has gone up from Rs. 3.50 crores in the year 1950 to over Rs. 645 crores in the year 1993.   

(d) The labour employment in the sector has also increased ten fold from 0.32 lacs in 1950 to about 3.25 lacs in 1993

(e) The State's non-tax revenue from mineral sector has gone up from 0.48 crores in 1951 to Rs. 161.2 crores in 1993-94.

1.2 INFRASTRUCTURE FOR MINERAL EXPLOITATION

1.2.1 RAILWAYS

In the field transport, the State is poised for a major leap forward with the ongoing and proposed programmes of conversion of meter-gauge lines into broad-gauge at several places. It is expected that by the year 1995-96, a total of about 2161 kms. Of existing meter-gauge lines would get converted into broad-gauge. Jaipur has already been linked to Sawai Madhopur by broad-gauge (132 Kms). Delhi-Jaipur-Ajmer-Ahmedabad (1034 Kms), Jaipur-Jodhpur (327 Kms), Jodhpur-Jaisalmer (297 Kms), and Jaipur-Bikaner (397 Kms) meter-gauge railway lines will be converted into broad-gauge by the end of the Eight Five Year Plan. This would revolutionise mineral movement in the State.

1.2.2 ROAD NETWORK

Rajasthan has an extensive network of roads linking all district, Sub divisional, Block and Tehsil head quarters. The road network was 63078 Kms. Long on 31.3.94. All villages having a population of 1000 (1981 census) would be linked by bitumen roads by March, 1997. Work on four laning of Jaipur-Delhi National Highway is in progress which on completion would ensure faster mineral movement on this very important route.

1.2.3 POWER

Power is a key input is mechanised mining, processing and mineral based industry. The development of power sector has always been accorded the highest priority in the State. In the Eight Five Year Plan, 28.31% of the Plan-outlay has been earmarked for this sector. The total installed capacity in the State as on 1.6.94, is 3005 MW. This does not include additional capacity of 110 MW at Anta by national Thermal Power Corporation (NTPC) and 250 MW of additional temporary allocation by the NTPC. Several projects are under execution for augmenting the power generation in the State.

1.2.4 HUMAN RESOURCES

Looking at the number of mines in the State, a large number of technically qualified personnel is necessary. There is an Engineering college at Jodhpur having a degree course in Mining Engineering. There are, however, a number of Industrial Training Institutes in the State but mining is still to be included in their curriculum.

There are five colleges at Jaipur, Jodhpur, Udaipur, Bikaner and Deedwana having M. Sc. Course in Geology. There are 78 Mining Engineers and 105 Geologists working in the State Mines & Geology Department, besides those working with Geological Survey of India and Mineral Exploration Corporation.

1.3 NEED FOR A NEW MINERAL POLICY

Importance of the mineral wealth for the economy of the State and the need for a well defined policy for the mineral sector is well recognized. The first Mineral Policy was announced by the State Government in 1977. Since then, significant changes have taken place in the knowledge of mineral deposits, legal regime governing mineral development, organisational structure of the Mines Department and the infrastructure availability.

The process of economic reforms has led to the globalisation, privatisation and opening up of the economy and this in turn, has necessitated changes in the policy and the legal regime regulating the growth and development of the mineral sector. The move towards an open market economy based on competitiveness and international outlook has made the announcement of a New Mineral Policy imperative.

1.3.1 NATIONAL MINERAL POLICY, 1993

The National Mineral Policy, 1993 has radically altered the earlier policy. Important changes introduced are as follows :

(a) Thirteen minerals viz. Iron ore, manganese, chrome, sulphur, gold, diamond, copper, lead, zinc, molybdenum, tungsten, nickel and platinum group of minerals have been deleted from the list of minerals which had earlier been reserved for exclusive exploitation by the public sector, These minerals are now open for exploitation by the private sector.

(b) Foreign investment and technology will be encouraged. Ceiling on foreign equality in the mining industry has been raised to 50% in the equity of Indian companies engaged in mining activities.

(c) Mineral and metal processing units which wish to develop captive mines to secure assured supplies of raw material will also be allowed foreign equity participation in the manner and to the extent already permitted to such processing units. Equity participation over 50% by foreign parties in non-captive mines can also be considered on a case to case basis.

2. OBJECTIVES OF THE NEW MINERAL POLICY

The basic objectives of the New Mineral Policy are:

(a) To explore mineral wealth of the State expeditiously by adopting modern exploration techniques particularly in the tribal, desert and remote areas.

(b) To exploit mineral deposits by promoting adoption of mechanised and scientific mining with due regard to the conversation of minerals mines safety and environmental aspects.

(c) Value addition through promotion of processing units and mineral based industries in the State.

(d) To encourage export of minerals having export potential.

(e) To promote development of human resources to meet the requirements of mining and mineral based industries.

(f) To de-mystify procedures and achieve greater transparency in decision making.

(g) To increase employment opportunities in the mining sector particularly, for persons belonging to Scheduled Castes, Scheduled Tribes and other weaker sections.

3. STRATEGIC ACTION FRAME WORK

(a) To conduct developmental studies in the field of mineral exploration, mineral exploitation and mineral based industries including benefication of low grade minerals.

(b) To take effective measures for checking unauthorized mining and leakage?s of revenue.

(c) To simplify and adequately modify Minor Mineral Concession Rules to help achieve the objectives of the mineral Policy.

(d) To ensure better mineral administration and for adequate delegation of powers to the State Government, reference would be made to the Government of India.

The above objectives and the action framework of the Mineral Policy would be achieved through the following measures :

3.1 MINERAL EXPLORATION

 

Mineral survey and prospecting has been of the main activities of the State Mines and Geology Department since its very inception. Untiring efforts are being made to locate new mineral deposits and to evaluate the known deposits for their integrated development. Till now, several significant achievements have been made by the Department in locating important mineral deposits which are of national importance.

Most of the mineral deposits which are found on surface and easily extractable have already been explored. Now exploring agencies will have to look for more and more difficult terrain and search mineral at greater depths with more sophisticated technology.

Planned efforts through Annual Field Programmes of mineral survey and prospecting schemes approved by the State Geological Programming Board, every year, would be continued on the following lines.

(a) The reconnaissance would be continued with advanced techniques and mineral potential areas would be covered on priority. The mineral maps would be prepared simultaneously, indicating preliminary Information about availability of minerals in different parts of the State. This will form a basis for mineral exploration.

(b) After completion of the above work, topographical survey and detailed geological mapping would be continued in a planned way in the mineral potential areas.

(c) Detailed investigations were confined so far to major minerals only, both metallic and non metallic. Now detailed prospecting would be carried out for minor minerals also. For the development of more and more mineral based industries and to cater to the local needs, emphasis would be given on investigation of limestone (cement grade as well SMS grade), lignite, base metals, noble metals, fertiliser minerals and diamond amongst major minerals and granite, marble, flaggy limestone and other dimensional and decorative stones amongst minor minerals.

In identifying mineral deposits the available resources/ technology with the State Department as well as with other exploration agencies of the Central Government and advanced techniques like remote sensing, airborne magnetics, airborne electromagnetics, radiometric set will be deployed for base and noble metals.

The foreign investors are approaching the State Government to carry out mineral exploration specifically for gold, base metals, copper oxides, diamond etc.. They have also suggested conducting high larger areas for prospecting than the existing limits specified in the Mines and Minerals Regulation and Development (MMRD) Act 1957.

The State Government intends to allow large overseas investors for mineral exploration and the Central Government would be requested to introduce a system of reconnaissance permits for larger areas in the mineral legislation.

The State Government would seek foreign investments from companies having better technical know how, expertise and financial capability in prospecting and mining of Gold, Base metals, Diamond, Emerald and other precious and semi-precious stones and Granite.

(d) Besides the State Mines and Geology Department, there are various Central Government agencies engaged in mineral exploration in the State. Efforts will be made to achieve a proper co-ordination amongst these agencies to avoid duplication of efforts and ensure optimum use of the resources.

(e) A two pronged policy of mineral exploration would be adopted. Minerals which have export potential or base on which processing units and other mineral based industries may come up within the State or which may be able to provide employment, particularly, in remote areas including desert and tribal areas will be covered under short term programmes. Under the long-term programmes concept oriented mineral exploration will be planned for minerals such as diamond, gold, potash etc..

3.2 MINERAL ADMINISTRATION AND DEVELOPMENT

3.2.1 REGULATION OF MINES AND MINERALS

Although mineral wealth vests in State Governments, yet the subject of regulation of mines and mineral development is covered by entry 54 of the Union List under Seventh Schedule of the Constitution of India. By virtue of this, the Parliament has exclusive power to make laws with respect to regulation of mines and minerals development.

Mines and Minerals (Regulation & Development) Act, 1957 has thus been enacted by Parliament and Mineral Concession Rules, 1960 have been issued by the Central Government have also framed the Mineral Conversation and Development, 1988 for conversation and systematic development of minerals. These rules are applicable to all minerals except coal, atomic minerals and minor minerals. Rule making powers in respect of minor minerals have been delegated to the States under Section 15 for the Act. In exercise of these powers, Rajasthan Minor Mineral Concession Rules (RMMCR), 1986 have been framed. Thus, the State's rule making power in respect of regulation and development of miens is limited only to minor minerals.

According too MMRD Act 1957, prior approval of the Government of India is necessary before the grant or renewal of mineral concession for minerals specified in Schedule 1 of the said Act. Presently, 23 minerals are included in Schedule 1. Of these 11 minerals are atomic minerals, one mineral (coal and lignite) is a fuel mineral and remaining 11 are metallic ores and industrial minerals. The State Government is of the view that to promote industrialisation at a faster pace, limestone should be deleted from Schedule 1 so as to ensure timely clearance of cement projects in the State.

3.2.2 AGENCIES ENGAGED IN MINING

Some important minerals such as lead-zinc-silver ore, copper ore, tungsten ore, rock phosphate, Steel Melting Shop (SMS) grade limestone, gypsum etc., are being exploited in the public sector by Central Government undertakings viz., Hindustan Zinc Ltd., Hindustan Copper Ltd., Fertilizer Corporation of India Ltd., and Pyrites Phosphates and Chemicals Ltd., and the State Government undertakings viz., Rajasthan State Mines and Minerals Ltd. (RSMML) and Rajasthan State Mineral Development Corporation Ltd. (RSMDC). Most of other minerals are being worked in the private sector.

 

3.2.3 IMPORTANT MINERALS - THEIR LEASING POLICY

Leasing policy for certain minerals such as lignite, steel grade limestone, cement grade limestone, gypsum, base metal deposits, granite, marble, Kota stone, state stone, wollastonite and brick earth shall be as follows :

(1) LIGNITE

Search and exploration of lignite is the State during the last twelve years has resulted in the discovery of several lignite deposits in Bikaner, Nagaur and Barmer districts and a total of over 1000 million tonnes of this mineral has been proved so far. The important deposits of lignite are located at Palana, Gurha, Barsinghsar and Bithnok in Bikaner, Merta road and Kasnau-lgyar in Nagaur and Kapurdi, Jalipa and Giral in Barmer district. ⁴ The State being power deficient, deposits of Palana, Gurha, Barsinghsar and Bithnok in Bikaner and Kapurdi and Jalipa in Barmer district have been reserved for power generation. The deposits near Giral in Barmer district are being assigned to M/s RSMM Ltd. For exploitation and supply for use as industrial and domestic fuel.

On behalf of the State Government, global renders have been invited by M/s RSMML for Barsinghsar Mining-cum-Lignite Power Generation Project and by RSEB for other than the Barsinghsar lignite deposits. Its is expected that about 2 * 240 MW power will be generated from the lignite deposits of Bikaner district and about 2 * 500 MW will be generated from lignite deposits of Barmer district. This is likely to catalyse an investment of about Rs. 5000 crores in the State.

(2) STEEL GRADE LIMESTONE

Extensive deposits of steel grade limestone have been located near village Sanu in Jaisalmer district where total reserves of over 550 million tonnes have so far been proved. This is the most important source of steel grade limestone available in the country for the supply too various steel plants. M/s RSMDC and M/s RSMML have been appointed as State Government's agents to mine & supply S.M.S. grade limestone from two block sets out for the purpose. The State Government has decided, whereby, mining of SMS grade limestone Company, a company to be jointly formed by equity participation of Steel Authority of India Ltd. (SAIL), Hindustan Zinc Ltd., RSMDC and M/s RSMML. The State PIB has cleared the project. Further necessary steps are being taken to implement it.

(3) CEMENT GRADE LIMESTONE

Rajasthan in endowed with vast resources of limestone with estimated reserves of abut 7000 million tonnes. The important limestone bearing areas within the State are located in the districts of Chittorgarh, Bundi, Bhilwara, Kta, Nagaur, Pali, jaisalmer, Jodhpur, Jaipur, Banswara etc. The State has the policy to lease out cement grade limestone only for captive use in the lessee's cement plants.

This policy has resulted in the establishment of 11 major, 27 medium and a large number of mini cement plants contributing about 10% of the country's total production of cement. The Government intends to continue this policy. Several major cement plants based on limestone deposits of Shambhupura, Gudia-Deoli, Kotra, Amli, Rass, Bilara, Nagaur and Jaisalmer areas are likely to come up in near future.

(4) GRANITE

Granite mining industry has so far been largely confide to the States of Andhra Pradesh, Karnataka and Tamil Nadu, Recently. Granite mining has also started in Uttar Pradesh, Orissa, Madhya Pradesh and Rajasthan . In Rajasthan . In Rajasthan , a number of workable deposits of granite have been located in Jalore, Barmer, Sirohi, Pali, Ajmer, Jaipur, Sikar, Jhunjhunu, Dausa, Alwar, Tonk, Bhilwara, Rajsamand, Udaipur, Dungarpur, Banswara, Chittorgarh and Sawai Madhopur districts.

The State Government has formulated a new policy for granting mining leases of granite over the plots delineated by the Department, with a view to ensure systematic mining through deployment, of proper machinery and equipment and to promote the export of processed granite. Under this policy , preferential allotment has been provided to entrepreneurs who have installed or who propose to install export printed processing units in a stipulated period. Entrepreneurs who have signed MOU with Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO) shall also be considered for preferential allotment.

The existing size of granite plots shall be increased from 100m * 100m to 150m *150m or 2.25 hectares, This would further facilitate modernisation and mechanisation of granite mines.

(5) MARBLE

Rajasthan with the total estimated reserves of about 1000 million tonnes, contributes about 90% of the country's production of this decorative stone. Important deposits of marble occur in Nagaur (Makrana), Rajsamand, Banswara, Dungarpur, Udaipur, Sirohi, Jaipur, Alwar, Ajmer and Chittorgarh districts. About 10% of the Department's income deom rents and royalties is obtained from this mineral alone. A suitable policy shall be formulated for leasing out potential marble bearing areas which would cover the following :

1. The size of marble plots shall be increased from the existing 100M * 100M to 150M * 150M or 2.25 hectares.

2. As far as possible, marble plots shall be delineated by the Department, before leasing and the applicant shall be required to submit a project profile along with the application, so that their suitability may be adjudged.

3. Mechanisation of mines, establishment of processing units, financial capability for making the desired investment in mining and processing unit and export of marble will from the basis for the priority in allotment.

(6) KOTA STONE AND SLATE STONE

This is also one of the important minerals which is popular as a flooring stone in domestic and international market. Deposits of this mineral occur in Kota (Ramganj Mandi). Jhalawar and Chittorgarh districts. Although mining of Kota stone has been going on for a long time, there has been a considerable wastage of this mineral due to the indiscriminate blasting of unsplittable layers and extraction of only splittable quality.

New leases for this mineral will be granted to such entrepreneurs who are prepared to adopt mechanised mining and resort to block mining of unsplittable layer of the stone. This will reduce wastage of the mineral.

Similar policy would be followed in the case of State Stone.

(7) BRICK EARTH

Good brick earth is found in Sri Ganganagar, Hanumangarh, Bikaner, Bharatpur and Jaipur districts. Keeping in view the availability of brick earth in small thickness, difficulty of the lessees in taking leases for large areas sufficient to feed their brick kins for at least 10 or 20 years and considerable leakage in Government revenue, a new policy has been formulated for leasing out brick earth used for manufacture of bricks in brick kilns. Salient features of this policy are :

1. Instead of mining leases, permits shall be granted for a minimum period of one year and a maximum period of five years.

2. Separate permits shall be required to be taken for separate kilins.

3. The quality of brick earth on which royalty shall be paid annually shall be calculated on the basis of the following formula :

Q = 150 * W * N

Where

Q = The quality of brick earth in tonnes;

W = Weight of 1000 bricks of standard size (9" * 41/2" * 3") which has been fixed for simplification as 3.5 tonnes.

N = The number of vertical columns of bricks which may be accommodated between the inner and the outer walls of the brick kiln along its width.

(8) GYPSUM

Gypsum is sound in Nagaur, Bikaner, Hanumangarh and Sri Ganganagar districts. The State Government 's policy has so far been to lease out gypsum to the public sector undertakings only; A suitable policy will be formulated to grant gypsum leases to private sector.

(9) BASE METALS

A number of small base metal deposits occur in Udaipur, Sirohi, Bhilwara, Chittorgarh and Jhunjhunu districts in the State which may now be made available for grant of mining leases to private entrepreneurs.

(10) WOLLASTONITE

The geological setting from South of Ajmer to Abu Road in Sirohi is favourable for wollastonite mineralisation. The most important deposits of this mineral occurs near Bel-Ka-Magra in Sirohi district and is already under lease. A number of low grade wollastonite deposits have been located in Ajmer district which are amenable to benefication. In order to ensure speedier development of this mineral and to promote mineral based industries, the State Government has recently removed the ban on grant leases for wollastonite to private entrepreneurs.

(11) OIL AND NATURAL GAS

Oil and natural gas have been struck in Western Rajasthan in Jaisalmer and Bikaner districts. A 3 MW gas based power plant is in an advance is in advance stage of completion in Jaisalmer. Another 35.5 MW gas based power plant will be commissioned by the end of the current financial year. In near future, the total likely generation of gas based power at Ramgarh will be about 160 MW. This will help in the industrialisation of the backward districts of Western Rajasthan.

3.2.4 MINING LEASED OVER LANDS BELONGING TO DEVSTHAN DEPARTMENT

On submission of NOC from the Devsthan Department, mining leases would be granted over lands belonging to them. Devsthan Department would, however, give priority to M/S RSMDC and M/S RSMML in granting NOCs.

3.2.5 SYSTEMATIC MINING AND ENVIRONMENT

(A) SYSTEMATIC MINING

Following measures will be taken to promote systematic and scientific mining with due regard to the mineral conservation and environment :

(1) The prescribed minimum size of lease areas will be reviewed and refixed to ensure proper formation of benaches for safe and systematic working to the required depth un to which mineral is available and is economically workable.

(2) Adjoining minor mineral leases of small size granted under RMMCR, 1986 will be allowed to be amalgamated into a single lease provided the total area of all such leases does not exceed 5 hectares.

(3) Steps will be taken to facilitate financing of exploration and mine-development.

(4) Induction of foreign technology and foreign participation in exploration and for mining of high value scarce minerals like base metals, gold, potash, deep seated gypsum, oil and natural gas etc. will be pursued.

(5) Non-working mines would be identified and efforts would be made to ensure that the mining leases are not kept idle.

(6) Non-compliance of stipulations regarding mineral conservation, systematic and scientific mining, mines sagely and environment aspects would entail conciliation of mining lease/quarry licence.

(B) MINING AND ENVIRONMENT

Balance growth of different sectors is necessary for proper economic development. Generally, mining is seen as hostile to environment. To strike a balance between environment and mineral development the following steps would be taken :

i) Generation of environmental awareness.

ii) Orientation of lease holders for preservation of ecological balance.

iii) Participation of lease holders in afforestation in degraded areas. Land bank for compensatory afforestation would be set-up in every district.

iv) Appropriate conditions regarding planting and nurturing of trees, dumping of waste at specified cited and proper stacking of top soil for later use will be incorporated in the lease agreements in case of minor minerals as well. Efforts would be made to convert old, disused mining as well. Efforts would be made to convert old, disused mining sites into forests and other appropriate forms of land use for maintaining the ecological balance.

v) At the time of renewal of major mineral leases, it will be seen whether mining has been carried out in accordance with the approved mining plan, Similarly, at the time of renewal of minor mineral lease it will be seen that mine has been developed systematically.

vi) Studies would be conducted on reduction and utilisation of mining waste by the Department.

vii) Wastage of Kota stone (dimensional limestone) has been allowed for any industrial use without payment of royalty.

 

3.3 MINERAL BASED INDUSTRIES

3.3.1 PRESENT STATUS AND PROSPECTS

As mentioned earlier, Rajasthan has rich mineral deposits and is a leading producer of several minerals. A sound base for setting up mineral based industries, therefore, exists in the State.

Several industries based on minerals have come up in the State. The most important of them are Zinc Smelter, Super Zinc Smelter, Copper Smelter, Rock Phosphate beneficiation plant, major portland Cement plants, White Cement plants, Marble processing plants, Granite processing plants, Ceramic and Insulator units and Kota stone processing plants. Besides, there are a number of stone/mineral crushing, griding and pulverising plants, small stone cutting and polishing units, lime kilns, hydrated lime plants, brick kilns, plaster of paris units etc. In all, about 5000 small scale registered units exist in the State, today.

Looking at the availability of minerals in the State, there is a tremendous scope for setting up of new mineral based industries. Various minerals mined in Rajasthan are being sent to other states in raw form. The State is, therefore, deprived of the value addition in minerals as well as employment avenues to rural and backward classes.

The endeavour, therefore, would be to encourage the establishment of mineral based industries in the State, some of which are shown in Table II.

 

TABLE II

IMPORTANT MINERAL BASED INDUSTRIES

 

3.3.2 MEASURES FOR DEVELOPMENT OF MINERAL BASED INDUSTRIES

The following measures would be adopted for the development of mineral based industries in the State :

(1) To facilitate the term loan assistance from financial institutions to units engaged in mining, leases would be allowed to be mortgaged in favour of the financial institutions.

(2) Priority will be given grant of mining leases to such entrepreneurs who are willing to install processing/benefication units.

(3) Limestone (Kota stone) waste from mines, if used as a raw material in an industrial unit, will be exempted from payment of royalty.

(4) Rajasthan has large deposits of minerals used as raw material in ceramic and glass industries like clays, felspar, silica-sand and quartz. However, the development of ceramic and glass industries has been quite insignificant with 40% to 70% of the raw material going outside the State. Following additional incentives have therefore, been declared by the Government in the State?s Industrial policy, 1994 :

(a) Under the Sales tax Incentive/Deferment Scheme, 1989, the maximum period of benefit for these industries would be increased from 7 to 9 years in the case of units having investment between Rs. 5 crores to Rs. 25 crores and from 9 years to 11 years in the case of units having investment between Rs. 25 crores to Rs. 100 crores.

(b) The exemption in terms if tax liability would be raised from 75% to 100% for the two categories mentioned above, on a tapering basis.

 

3.3.3 SINGLE WINDOW SERVICE

In order to facilitate mineral exploration by overseas investors and to provide help to domestic/foreign investors in putting up mining/mineral based Industries having capital outlay of more than 5 crores, a State Level Facilitation Group would be set up under the chairmanship of the Mines Secretary, which would provide one window clearance. Excort services will be provided by the Bureau of Industrial Promotion (BIP). RIICO also will provide necessary support and help in catalyzing investments in exploration, mining, processing or mineral based industries.

3.4 EXPORT PROMOTION

Marble, Granite, Kota stone, Dholpur stone, Soap stone, State stone, Schist, Wollastonite, Zinc concentrate, Felspar, Mica and Semi-precious stones have the potential for export. Most of these minerals are being exported even today, but the quantities are comparatively small, Apart from the need for improving their quality standards acceptable to foreign from the need for improving their quality standards acceptable to foreign markets, suitable incentives could be necessary to increase their export.

Following measures will be taken to promote export of minerals:

(1) Fairs and exhibitions will be organised in the State, periodically, so that the type of minerals and decorative stones available in the State may have the desired publicity.

(2) Visits to national and international trade fairs, exhibitions and seminars will be organised both, for potential exporters and Government functionaries. participation of lessees and entrepreneurs in such trade fairs, exhibitions and seminars is expected to give them an opening in the national/ international markets and provide a fillip to exports.

(3) Priority will be given in the grant of mining leases to those who put up export oriented units in the State.

(4) Facilities available at Ore Dressing Laboratory of Indian Bureau of Mines (IBM) located at Ajmer would be fully utilised. Request would be made to the Ministry of Mines, GOI to suitably strengthen the laboratory for undertaking beneficiation studies and chemical analysis. The existing laboratory at Udaipur would also be strengthened.

(5) Efforts will be made to promote the use standard equipment for improving and maintaining quality standards suiting the requirements of the foreign buyers.

3.5 INFORMATION DISSEMINATION

In order to have proper dissemination of information relating to availability of minerals, exploration-status, mining and setting up of mineral based industries, a Development Cell will be created in the Department for undertaking the following activities :

(a) Preparation of an inventory of minerals available and produced in the State and updating it regularly. Districtwise tenement maps indicating the leased area would be prepared, updated and published every year.

(b) Resumption of the quarterly publication of the `Rajasthan Mineral Bulletin? and to make it more informative.

(c) studies in the field about mining methods, reduction and utilisation of mining waste and development of mining machinery and equipment for use in small mines.

(d) Mineral benefication studies by the Departmental and other laboratories.

(e) Studies for productive use of mineral waste so that the adverse effect on environment may be checked.

(f) Brochures would be prepared for target minerals like granite, ceramic minerals, decorative and dimensional stones to facilitate setting up of mineral based industry in the State.

3.6 INFRASTRUCTURAL FACILITIES

3.6.1 APPROACH ROADS TO MINES AND QUARRIES

Looking at the importance of approach roads in mineral movement are thereby facilitating productivity in mines, it has been decided that:

(1) Whenever feasible, construction of approach roads to mines shall be taken up under Famine Relief Programme; Jawahar Rozgar Yojana (JRY), Apna Gaon Apna Kaam Scheme? etc.. the Government is involved, such ratio shall be 50:50. A master plan for such roads will be prepared by the Department.

(2) To link mining areas, toll roads could also be constructed through the aegis of Rajasthan State Bridge Construction Corporation. The money spent on the construction of the road would, however, be recovered through the levy of a toll.

3.6.2 WELFARE AMENITIES FOR MINE WORKERS

(1) Looking at the inadequacy of welfare amenities available to the mine workers, the Government has decided to share 50% of the cost of construction of such amenities like schools, hospitals, dispensaries etc under various rural developmental schemes like "Apna Gaon, Apna Kaam". The rest of the expenditure will gave to be borne by the mining lessees.

(2) Labour plays a very important role in the development of mines and, therefore, it is necessary to provide adequate welfare facilities depending on the requirement of the area. In cluster of mines, school will be opened by the State Government. Efforts would be made for providing proper housing, health care and drinking water facilities for the labour engaged in mines. Special welfare amenities would be provided for children.

3.6.3 DEVELOPMENT OF MINING ESTATES

On the pattern of RIICO, RSMDC may also be entrusted with the responsibility of developing Mining Estates. It is proposed that RSMDC may be allotted siwai-chakland or may aquire private land. On such allotted/acquired lands RSMDC would do the necessary planning and development of mining plots. The Mines Department would then lease out the delineated plots These lessees would be required to pay to the RSMDC such premium as may be determined by the RSMDC which would cover the infrastructure-development-cost of the Mining Estate. It is expected that RSMDC would provide the basic infrastructure like roads, power, water, communications and is bigger estates, social infrastructure like dispensary, primary school. creche etc.. RSMDC would also levy annual service charges for the maintenance of the Mining Estate. Suitable "RSMDC Land Allotment Rules" would be formulated to give effect to this proposal. This policy would be pursued in case of minerals in which mining leases may be granted in clusters such as marble, granite, sand stone, Kota stone etc.

3.7 HUMAN RESOURCE DEVELOPMENT

3.7.1 TRAINING OF PERSONS WORKING IN MINES

Skilled and qualified persons are necessary for better productivity and systematic and safe mining. Blasters, Mining mates, Foremen, Surveyors and persons working in various other capacities in mines require statuary certificates. There is shortage of such technically qualified personnel. Therefore, following action is proposed to be taken by the Government n consultation with the lease holders :

(1) To provide training facilities for workmen of different categories in the industrial Training Institutes and Polytechnics. Such training programmes may be arranged under schemes like Training of Rural Youth for self-employment (TRYSEM), etc..

(2) To arrange refresher courses for the existing skilled and unskilled workers.

(3) To introduce specialised training in Industrial Training Institutes for working in the dimensional and decorative stone mines.

3.7.2 TRAINING AND STUDY TOURS FOR THE DEPARTMENTAL OFFICERS :

Following measures will betaken for training the officers :

(1) Suitable training for the personnel of the Mines Department shall be arranged at various levels.

(2) Technical officers of the Department will be sent on study tours to various important mines to understand modern techniques and also to national laboratories to up-date their knowledge.

3.7.3. DEVELOPING MODERN MARBLE AND GRANITE MINES WHICH WILL SERVE AS A MODEL :

M/s RSMML has been advised to develop marble mine (Serpentine or green marble) in Udaipur area in collaboration with Italian experts. Similarly, they would also develop a granite mine. These mines would deploy latest mining equipment and qould serve as a model for others.

3.8 AMENDMENTS IN RAJASTHAN MINOR MINERAL CONCESSION RULES, 1986

Mineral concessions in respect of minor minerals are granted and regulated in accordance with the provisions of the Mines & Minerals (Regulation & development) Act, 1957 and the Rajasthan Minor Mineral Concession Rules, 1986. The later, which came into force with effect from 4th March, 1986 are proposed to be extensively amended. Some of the amendments have become necessary, consequent to the amendments in the aforesaid Act, while others are being proposed with a view to simplify mining, curbing illegal mining and bringing transparency in decision making to minimise litigation. A synopsis of the important amendments proposed is given below:

3.8.1 MINING LEASES

1. To facilitate stability in mining operations and to attract greater capital investment in the mining sector, the period for which a mining lease may be granted or renewed is proposed to be enhanced from the existing 10 years to 20 years.

2. To encourage scientific mining, minimum size of the area for which a mining lease may be granted is proposed to be revised from existing 50 meters * 50 meters to one hectare.

3. (a)The present formula for revision of deadrent is unscientific and encourage evasion of royalty. It is unscientific and encourages evasion of the determinants for fixing deadrent. The proposed formula is an under :

Revised deadrent = Existing deadrent+ 40% of existing dead rent.

(b) Looking at the nature of the mining operations and the usual trend in production , it is proposed that the deadrent for a particular lessee should be capped and should nor exceed five times the amount calculated in a accordance with the rates given in Schedule-II of the Rules.

4. As a major simplification exercise, surrender of a part area of a mining lease is proposed to be allowed . For the sake of equity, deadrent for the retained area is also proposed to be proportionately reduced. This will also result in avoiding litigation.

5. To reduce the inconvenience to a law abiding assessee, it is proposed to make a provision for self assessment of royalty by the assessees according to a scheme to be announced by the Government.

6. Many times "deemed refusal" of application is on account of governmental inaction. In order to save the harassment of applicants and to avoid unnecessary litigation, existing provision of `deemed refusal? of application for (a) grant of a mining lease, (b) renewal of a mining lease and (c) transfer of a mining lease is proposed to be deleted.

7. To ensure fair play and greater transparency in decision making, the principal of `first come first served? presently applicable even in the case where area is declared free for grant of a mining lease , is proposed to be dispensed with. Instead, it is proposed that applications received within a period of 30 days, from the date on which area is declared free, shall be considered simultaneously, with a view to selecting the most suitable applicant.

8. In order to ensure scientific & systematic mining, a provision is proposed to be made for grant of mining leases after delineation and motification of plots in specific areas.

9. Provision is proposed to be made for imposition of special condition in the lease with regard to the mechanisation and development of mines and establishment of mineral based industries.

10. Provision requiring dumping of over burden/ waste from mines at places approved by the Mining Engineer or the Assistant Mining Engineer concerned, is proposed to be made so that environment is not adversely affected on account of mining operations.

11. For non-working mines, a provision of lapsing of the lease is proposed to be made in accordance with the provisions of MMRD Act, 1957.

12. Provision is proposed to be made for collection of royalty in excess of the deadrent from lease holders by awarding Excess Royalty Collection Contracts for specified minerals and for areas notified foe the purpose.

13. Existing provision as regards submission of a no objection certificate from the Colonisation Commissioner, with the application, for grant or renewal of a mining lease in areas defined as colony in the Rajasthan Colonisation Act, 1954, is proposed to be deleted.

14. Procedure for grant of areas surrounded by mining leases (gap areas) is proposed to be laid down in the rules.

15. Maximum limit of area, for which one or more mining leases of salt petre may be granted or renewed in favour of a person, is proposed to be reduced to 10 sq. kms.

16. To facilitate the renewal of a mining lease before the lease period expires, it is proposed to provide in the rules in the rules that the application for renewal shall be made at least twelve months before the date of expiry of the lease.

17. To provide more time to the grantee, it is proposed that an additional period of three months over and above the mandatory 45 days, be provided for executing the lease with payment of a penalty equal to 9% of annual deadrent for delay of every month or part thereof.

3.8.2 QUARRY LICENCES

1. To facilitate quarry licence holders, who are mostly from the weaker sections of society, the period for which a quarry licence may be granted is proposed to be enhanced from the existing period of one year to five years.

2. Quarry licences are similarly proposed to be renewed for a period of five years.

3. In the existing rules, the maximum period for which a quarry licence may continue (including the period of original grant and subsequent renewals) has been prescribed as 30 years. The period of 30 years will, now, be reckoned to have commenced from the date the RMMCR, 1986 came into force.

4. Restriction regarding the number of quarry licences is proposed to be relaxed, in case of quarry licences which have been converted from rent-cum-royalty leases granted before the RMMCR, 1986 came into force.

5. It is proposed to clarify that reservation of plots to persons belongings to the categories specified in rule 27(1) shall not be required in case of those plots which had been delineated prior to 4th March, 1986.

6. Provision of deemed refusal of application submitted for transfer of a quarry licence is proposed to be deleted.

3.8.3 BETTER ROYALTY COLLECTION THROUGH CONTRACTS

1. Where the bid amount exceeds Rs. 10 lacs, it is proposed to (a) reduce the amount of security from 25% at present to 12.5%, subject to a minimum of Rs. 2.50 lacs and (b) permit payment of contract amount in monthly instead of quarterly instalments.

2. Provision is proposed to be made for the adjustment of security in the last instalment to be paid by the contractor, provided that there is no lapse on his part.

3. In order to save time and energy in finalising the bids, it is proposed that where the highest bidder fails to deposit the security and advance instalment of the contract money, the contract may be awarded to the second or the third highest bidder provided that the difference in the bid amount is not more than 10% from the highest bid.

3.8.4 CONTROL OF UNAUTHORISED MINING AND MINERAL MOVEMENT

More stringent provisions as given below are proposed to be made in the rules to effectively curb the practice of unauthorised mining and movement of minerals without valid rawanna :

(a) Panalty for unauthorised mining is proposed to be enhanced as follows :

Period of imprisonment is proposed to be increased from the existing six months to one year.

The fine is proposed to be increased from existing Rs. 1000/- to Rs. 5000/- and

Additional fine for the days the contravention continues is proposed to be increased from Rs. 100/- per day to Rs. 500/- per day

(b) Provision is proposed to be made for the cancellation of a quarry licence if the licensee is found to be engaged in unauthorised mining.

3.8.5 GENERAL

(1) Provision is proposed to be added in the rules for reservation of areas for prospecting or mining operations by the State Government.

(2) Following provisions regarding right of successors are proposed to be inserted :

(a) Where an order of grant of a Mining Lease (ML) / Quarry Licence (QL) has been made and the grantee expires before the execution of the lease deed, the order of grant shall be deemed to have been made in favour of grantee?s heir (s).

(b) Where the applicant expires before the disposal of the application for grant of ML/QL, the application shall be deemed to have been made by the legal heir(s) of the applicant.

3.9 SIMPLIFICATION OF PROCEDURES

Demystification and simplification of procedures is one of the basic objectives of this policy. The endeavour is to :

(1) Smoothen the prevailing office procedures for greater convenience.

(2) Avoid delays and reduce time lag in grant and renewal of mining leases.

(3) Streamline the system ensuring greater objectivity, transparency and proper application of the law.

(4) Delegate powers at appropriate levels for expeditious disposal .

(5) Propose suitable amendments in the MMRD Act, 1957 and the MCR 1960 which are considered necessary in the interest of mineral development.

3.9.1 GRANT AND RENEWAL OF MINING LEASES

(1) REMOVAL OF BAN ON GRANT OF LEASES FOR MAJOR MINERALS IN CERTAIN AREAS.

To reopen of major minerals leases, the circular issued by Government on 20.1.93 restricting grant of major mineral leases in ten tehsils of Rajasthan Viz., jamwaramgarh, Nathdwara, Rajsamand, Aspur and Ghatol shall be withdrawn.

(2) REPORT ABOUT MINERAL OCCURRENCES :

(I) A copy of order of grant of a prospecting licence will be endorsed to the Senior Geologist concerned for his knowledge and inspection of the area, during the currency of the licence.

(II) After completion of the prospecting operations and receipt of r report from the license holder, a copy will be sent to the senior Geologist for verification and to intimate whether any minor mineral of economic importance is available in the area. If such mineral is found to occur, the same will be marked on the map so that a view may be taken regarding deletion of the area containing minor mineral before passing an order of grant of mining lease for a major mineral.

(III) Where the area applied for grant of a mining lease was previously held and worked, the applicant will not be asked to submit prospecting report. Instead, a report as regards the availability of mineral will be obtained from the Mining Engineer or the Senior Geologist concerned.

(3) CHECK LIST OF DEFICIENCIES IN THE APPLICATION, IF ANY, TO BE ISSUED ALONG WITH ACKNOWLEDGEMENT SLIP.

To overcome the difficulty of frequent objections raised regarding the deficiencies in the application and submission of various documents, the applications will be checked at the stage of their receipt. For this, the check list in vogue will be revised. This check list, indicating the deficiencies in the application, will be handed over to the applicant, along with the acknowledgement slip.

(4) NOC FROM REVENUE DEPARTMENT IN RESPECT OF APPLIED AREAS FALLING PARTLY UNDER CHARAGAH MAY NOT BE NECESSARY BEFORE GRANT OF PL/ML.

Instructions issued by the Government for obtaining Revenue Department?s NOC in cases where land notified as charagah falls partly with in the area applied for grant or renewal of a mining lease, will be reviewed. It may be sufficient to obtain an affidavit from the applicant along with the application to the effect that he will not work in any charagah land before obtaining the consent/permission from the Revenue Department. This would be applicable only in cases where charagah land is less than 5% of the area applied.

(5) NOC UPTO 4 HA. IN CASE OF CHARAGAH LAND TO BE ISSUED BY THE DISTRICT COLLECTOR

In case the applied area falls wholly or partly within a notified charagah, a District Collector would be empowered to issue the NOC for areas not exceeding 4 Ha.

(6) RENEWAL OF MINING LEASES

Mining leases (both for major as well as for minor minerals) upto 5 Ha. area will be normally renewed if :

(i) the lease area does not fall in the forest land

(ii) there are no-dues of the Department outstanding against the lessee and

(iii) mining has been done effectively in the leased area.

Powers of renewal of leases having areas upto 5 Ha. shall be delegated to the SME concerned irrespective of the deadrent.

(7) PL/ML APPLICATIONS TO BE DISPOSED OF WITHIN A GIVEN TIME LIMIT.

The provision of "deemed refusal: of applications for grant and renewal of prospecting licences and mining leases has been deleted from the Mineral Concession Rules, 1960. Provisions of `deemed refusal? of such applications for minor minerals will also be deleted from the Rajasthan Minor Mineral Concession rules, 1986. Following time limits shall, however, be fixed for the disposal of applications at various levels which will be as follows :

This time limit will, however, not apply in case of applications received for the areas delineated by the Department. In such cases, the maximum time limit for disposal of applications would be 3 months. If the competent authority fails to dispose of any application within the prescribed time limit mentioned above, he will have no powers in respect of such application and it will be disposed of by the next higher authority.

3.9.2 TRANSFER OF A MINING LEASE

(1) NOC FROM FOREST AND REVENUE DEPARTMENTS WILL NOT BE NECESSARY IN CASE OF TRANSFER OF LEASES.

Applications for transfer of mining leases falling within forest areas will be disposed of without obtaining NOC from the Forest Department. Similarly, NOC will nor be required from the Revenue Department if the lease includes charagah land.

(2) PROCEDURE FOR TRANSFER TO BE SIMPLIFIED

Applications for transfer of a mining lease will nor be rejected on the basis of the consideration, which the transferor gets from the transferee in lieu of such transfer.

(3) PAYMENT OF 20 % OF ANNUAL DEADRENT AS TRANSFER PREMIUM

Transfer of mining leases of minor minerals will be allowed on a payment of 20% of the annual dead- rent as transfer premium.

(4) POWERS TO ALLOW TRANSFER OF LEASES TO BE DELEGATED TO THE DIRECTOR OF MINES & GEOLOGY

For prompt disposal of application for transfer of major mineral leases (other than those of Schedule I minerals) and also of the minor mineral leases granted or renewed by the Government, full powers will be delegated to the Director of Mines & Geology. The time limit for disposal of such applications shall be two months.

3.9.3 AGREEMENTS AND THEIR REGISTRATION

(1) EXECUTION OF LEASE AGREEMENTS - TIME LIMIT PRESCRIBED FOR `NO OBJECTION? FROM THE DISTRICT COLLECTOR

At present a copy of the order sanctioning the lease is sent to the District Collector requesting him to intimate within a period of 30 days, if there is any objection, to the mining operations in the sanctioned area, In several cases, thereply is unduly delayed. Although, the District Collectors contend that until clearance is received from them, agreement should not be executed yet the clearance is not received for a long time. In order to facilitate timely action, it has been decided that the Collector would communicate his final decision within the stipulated period 30 days. If the final decision is not communicated within this period , then the Collector will cease to have the powers in this regard and the matter shall be decided by the collector will cease to have the powers in this regard and the matter shall be decided by the Divisional Commissioner concerned within a period of another 30 days. If the final decision is not communicated by the Divisional Commissioner within this period then clearance would be deemed to have been given.

(2) ADJUDICATION OF STAMP DUTY FOR REGISTRATION OF LEASE AGREEMENT SHOULD NOT BE NECESSARY

Since the formula for calculating the tamp duty is prescribed, it should not be necessary for the registering authority to send the agreement to higher authority for adjudication of the stamp duty. Necessary directions would be issued in this regard by the Finance department.

3.9.4 ISSUE OF RAWANNA BOOKS

(A) ONLY ONE PERSON TO BE RESPONSIBLE FOR ISSUE OF RAWANNA BOOKS

To avoid lessees approaching various dealing clerks for getting rawanna books issued from the office of the Asstt. Mining Engineer or the Mining Engineer (In case of an office not having AME, the ME) or in his absence one of the officials authorised in this beheld will issue rawanna books and the lessee will not be asked to contact any other person for this purpose. The rawanna books would invariably be issued on the same day. An updated list of dues shall be prepared every month and a copy of the same will be given to the person issuing rawanna books.

Every ME/AME shall furnish a monthly return to the SME concerned about the issue of rawanna books in a proforma to be prescribed.

3.9.5 NO DUES CERTIFICATE TO BE VALID WHILE SUBMITTING THE APPLICATION AND AT THE TIME OF EXECUTION OF LEASE DEED

The AME/ME concerned will ensure that there is valid no-dues-certificate both, at the time of the application and the execution of the agreement. No-dues-certificate will be valid up to a period of 6 months from the date of the issue.

3.9.6 TOWARDS BETTER ADMINISTRATION -SPEEDY DISPOSAL OF MINING CASES

To exercise better control over mineral administration in various circles, divisions and sub-divisions as well as for effective checking of unauthorised mining, leakage of revenue and for speedy disposal of mining cases, the State may be divided into 3 regions. The regional office would be headed by Additional Director (Mines) who will also hear appeals preferred against the order of the aggrieved persons because, hearing will be given at a place nearer to the area of the applicant lessee.

3.9.7 INSPECTIONS OF MINING AREAS BY OFFICERS ONLY

It has been observed that in a number of cases inspections of lease-hold-areas are conducted by subordinate technical staff. Generally, such inspections do not serve any useful purpose. It has now been decided that only officers of the rank of Assistant Mining Engineer and above will carry out inspections of mining areas. These inspections will be very thorough and not merely fault finding. while inspecting, the method of working, drilling, blasting, loading, transport, safety, conservation, restoration of ecology and other important aspects of working will be looked into. The inspecting officers shall also develop a proper follow-up system so that guidance and suggestions given are properly implemented by the lease holders.

3.9.8 BETTER INTERACTION BETWEEN THE MINES DEPARTMENT AND THE MINERAL INDUSTRY

In order to ensure better interaction between the Department of Mines and the Mineral Industry, it has been decided that periodic meetings will be held at different levels where various issues concerning mining, mineral development and other allied issues including problems and difficulties being faced by the mining entrepreneurs will be thoroughly discussed.

A State level Mineral Advisory Council would be set up under the Chairmanship of Mines Minister which will have representatives of various Associations related to mines/mineral based industries. This Council will meet at least once a year.

The Council will have an Executive Committee headed by the Mines Secretary which shall meet at least twice a year.

3.9.9 POINTS FOR REFERENCE TO GOVERNMENT OF INDIA

To facilitate better mineral development in the State, the following points have been/are being referred to the Government of India for their consideration :

Amendment in rule 24A of MCR, 1960 relating to the disposal of applications for renewal of mining leases.

Deletion of Part C - Metallic and Non--Metallic minerals from schedule I of the MMRD Act, 1957.

Despatch of mineral in excess of the prescribed quantity from PL areas.

Amendments in the provisions relating to Mining Plans.

Geological/Exploration data available with GSI and other Central Government agencies.

Fiscal issues pertaining to the Central Government.

Amendment in the Explosive Rules.

Grant and renewal of prospecting licences and renewal and transfer of mining leases of minerals covered under Schedule I.

3.10 EMPLOYMENT OPPORTUNITIES

(1) Certain provisions for [referential treatment to persons belonging to the Scheduled castes, Scheduled tribes, manual workers and other weaker actions of the society, already exists is Rajasthan Minor Mineral; Concession Rules, 1986.

Following measures will be adopted to enhance the employment opportunities for the less privileged people :

(a) Certain areas of marble and other decorative stones in which large investment is not considered necessary, will be reserved for the class of persons belonging to S.C./S.T. and other weaker classes.

(b) A provision is being inserted in the rules that all applications received for grant of a mining lease within the specified period of thirty days, shall be considered together, for granting the lease, This will provide ample opportunity to persons of SC/ST and other weaker classes for grant of leases of at least those minerals in which priority is to be given to them as per the rules.

(c) This policy is expected to substantially increase the employment opportunities for the weaker sections, with the grant of more leases, better working of mines and development of mineral based industries etc.

(2) The implementation of this policy is likely to open new avenues of employment. It is expected that by the end of next decade the number of persons engaged in the mineral sector in the State will increase from 3.25 lacs to about 10 lacs.

3.11 PROBLEM OF TRUCK UNIONS FACED BY MINE OWNERS

There have been disputes between the Truck Unions and Mine owners specially belonging to SC/ST and other weaker sections of society with regard to freight charges due to the monopolistic tendencies. The State Government has created a Grievance Redressal Machinery to take care of this problem.

4. PROBLEMS IN MINERAL DEVELOPMENT DUE TO FOREST LAWS - SOLUTIONS THEREOF

1. Difficulties are being faced in granting new mineral concessions as well as in renewing the existing leases/licences die to the stringent provisions of the Forest Conservation Act, 1980 and Rules made there under . To overcome the problems in this regard, the State Government has constituted an Empowered Committee under the Chairmanship of the Chief Secretary. This committee would take decisions and make recommendations regarding the inter-departmental problems from time to time.

2. Every applicant for a mining lease/prospecting licence should submit an affidavit along with a certified copy of the revenue jamabandi and revenue map from the revenue department in support of his contention that the area applied is not covered under any forest land. To facilitate this, forest maps would be super imposed on revenue maps as well as on G.T. sheets. This exercise will be completed within a period of one year and the maps would be made available to the Mines Department.

3. To avoid inordinate delays in the grant/renewal of mining leases/licences in-respect of areas which are non-forest lands as per the revenue records, Mines Department may furnish details of such applied areas to Forest Department, seeking objections, if any, within a period of 60 days. If no objections are received from the Forest Department within the stipulated period of 60 days, it would be presumed that the Forest Department has no objection and consequently the Mines Department would allow grant/renewal of lease/licence.

4. It has been decided that in the vicinity of important forest areas like Games sanctuaries, national Parks and reserved Forests, mining activities should not be undertaken within 25 meters. In other forest areas mining could be undertaken in the immediate vicinity of the forest area. The list of the above mentioned forest areas would be circulated by the Principal Chief Conservator of forest. It has been decided that henceforth , except for a 25 metre belt around the above mentioned forests, consent would not be refused by the Forest Department, in areas adjoining the forest land.

5. In order to provide the land for compensatory afforestation it is proposed that a minimum area of 100 hectares, suitable for plantation be set apart and placed at the disposal of the Mines Department as a "Land Bank" in every district. This "Land Bank" would be used for compensatory afforestation by small lease holders (having 1 to 5 hectare of mining area) who are operating the existing mining leases in forest land. The lessee will plant and nature at least 400 trees per hect of land in lieu of his lease hold area. This would help subsequent permission of the Union Government for the renewal of mining leases within the forest land as compensatory afforestation would be ensured before seeking such approval from the Government of India. On successful implementation of the proposed system of the "Land Bank", larger tracts of land may be sought for this purpose.

6. In normal circumstance, no mine can operate in forest areas. There is, however, a provision for denotification of reserved forest areas for non-forest purposes with the prior approval of the Central Government. To promote export of minerals and mineral products, at times, it may be necessary to operate a mine within a reserved forest area. The State Government would examine such cases on merits and where it is found that mining of the mineral would be more beneficial and would serve the larger national interest, because of the export earnings etc; the State would recommend such cases to the Government of India for according permission to divert forest land for mining purpose in accordance with the provision of the law.

5. POLICY IMPLEMENTATION

The Mineral Policy announced in the year 1977, Industrial Policy announced in the year 1990 and the New Industrial Policy announced in the year 1994 contains several measures as well as incentives for mineral sector which have been considered. The mineral development.

As mentioned earlier, an Empowered Committee, headed by the Chief Secretary , has been set up in the State. This Committee, besides performing the functions specifically assigned to it would also take suitable steps for ensuring compliance of the measures envisaged under the Mineral Policy, 1994.

Progress regarding the implementation of the Mineral Policy would also be reviewed at the level of Minister of Mines, twice a year.

 

APPENDIX II

IMPORTANT MINERALS PRODUCED IN RAJASTHAN

MAJOR MINERALS

 

MINOR MINERALS

  

APPENDIX III

NUMBER OF LEASES & AREA OF MAJOR MINERALS

IN RAJASTHAN (As on 31.3.1993)

 

 

APPENDIX III (CONTD.)

NUMBER OF LEASES & AREA OF MINOR MINERALS IN RAJASTHAN

(As on 31.03.1993)

 

 

APPENDIX IV

LIGNITE DEPOSITS IN RAJASTHAN

 

 

APPENDIX V

POINTS FOR REFERENCE TO GOVERNMENT OF INDIA

(1) AMENDMENT IN RULE 24 A OF MCR, 1960 RELATING TO DISPOSAL OF APPLICATIONS FOR RENEWAL OF MINING LEASES

The Government of India has recently deleted the provision of deemed refusal of an application received for grant or renewal of mining lease from MCR, 1960. However, the provision that, if the application for renewal has not been disposed of till the date of expiry of lease or till the date of expiry of the extended period of lease, has not been amended. A number of applications which could not be disposed of within the prescribed time are, therefore, lying pending. The Government of India will, therefore, be requested to amend the corresponding rule to enable the State Government to pass orders on such applications.

(2) DELETION OF PART C-METALLIC AND NON-METALLIC MINERALS FROM SCHEDULE I OF MMRD ACT, 1957.

According to MMRD Act, 1957 and MCR, 1960, mining leases for minerals included in Schedule I can be granted or renewed only after obtaining prior approval of the Government of India. Although as many as 15 minerals have been excluded from Schedule I ; 11 Metallic and Non-metallic minerals still continue to remain in Schedule-I. Rajasthan is rich in limestone deposits which are required for the installation of cement plants, which have been unduly delayed in the past, for want of clearance of the Government of India for grant of PL/ML. Looking at the need for decentralisation and in keeping with the policy of economic liberalisation, the Central Government would be requested to delete Part C - Metallic and Non-metallic minerals from Schedule-I.

(3) DESPATCH OF MINERAL IN EXCESS OF THE PRESCRIBED QUANTITY FROM PL AREAS

The Government of India will be requested to suitably amend the rules to make a provision that mineral in excess of the maximum prescribed quantity may be despatched during the currency of a PL by paying four times the amount of royalty payable on the quantity so despatched/proposed to be despatched. This would enable the licensee to despatch larger quantities of mineral for experimental purposes etc., without any loss of revenue to the State Government..

 

(4) AMENDMENTS IN THE PROVISIONS RELATING TO MINING PLANS

(A) MINING PLANS SHOULD NOT BE MANDATORY IN CASE OF LEASES GRANTED PRIOR TO 10.2.87.

Since the provision of submission of ?Mining Plan? duly approved by the Central Government was inserted in the rules only on 10.2.87, it should therefore, not be made applicable to the leases granted prior to this date. The Government of India will, therefore, again be requested to take a fresh view in the matter.

(B) LOW VALUE MINERALS SHOULD BE EXEMPTED FROM SUBMISSION OF MINING PLANS

Looking at the cost of preparation of mining plans and the difficulty in following the same, the Government of India will be again requested to exempt holders of small and low value mineral-mines like that of quartz, feispar, silica sand, clay, red and yellow ochres from the provision of submission of mining plans.

(C) RECOGNISED QUALIFIED PERSON (RQP) TO BE MADE RESPONSIBLE TO AMEND MINING PLAN NOT APPROVED BY IBM

It has been observed that although mining plans are prepared by the Recognised Qualified Persons (RQP) approved by the Indian Bureau of Mines (IBM) yet, in a number of cases the plans prepared by such persons have been outrightly rejected by the IBM to prepare mining plans therefore, if the plans prepared are found to be inadequate and unacceptable to the IBM, it should be obligatory for the IBM to get the mining plans properly amended through the concerned RQP without any back references to the applicant of the mining lease or the lessee, as the case may be. The Government of India will be requested to make suitable amendments in the rules in this regard.

(5) GEOLOGICAL/EXPLORATION DATA AVAILABLE WITH G.SI. & OTHER CENTRAL GOVERNMENT AGENCIES

Geological/exploration data are available with the various organisations such as Geological Survey of India, Mineral Exploration Corporation, and Indian Bureau of Mines. To facilitate the selection of areas/targets for exploration by investors, all the data in respect of particular areas may be compiled and made available to the State Mines Department.

(6) FISCAL ISSUES PERTAINING TO THE CENTRAL GOVERNMENT

Exploration expenditure may be treated as R&D expenditure in view of the high risk involved and uncertainty of results.

National fiscal policy may be so structured as to provide adequate incentives for developing marginal prospects.

A comparative study may be made of mining and fiscal costs of projects to be developed in India as well as in selected foreign countries to help in the assessment of the economic viability of investments for exploration, mining and design for taxation cum policy packages in India.

The Union Government should reconsider recent made in the rates of excise duty levied on processed marble. The marble industry in a number of areas in Rajasthan is still in a developmental stage and the hike in excise rate has created an adverse effect on account of increased competition. The liberal fiscal policy of G.O.I. should be reflected in case of marble also, as has been evident in case of other commodities. The excise duty should, therefore, be reduced to pre revision level.

 

(7) AMENDMENTS IN EXPLOSIVE RULES

Difficulties are being experienced by the mining lessees in obtaining explosives required for mining operations. The rules should be simplified and procedures be made less cumbersome to enable the mining entrepreneurs to obtain explosives without much difficulty. The District Magistrates be given the powers to grant licences to mine owners for small quantities of explosives upto 50 kg.

(8) GRANT AND RENEWAL OF PROSPECTING LICENCES AND RENEWAL AND TRANSFER OF MINING LEASES OF MINERALS COVERED UNDER SCHEDULE I

Presently, all cases pertaining to grant, renewal and transfer of mineral concessions pertaining to minerals of Schedule-I are required to be approved by Government of India. It is felt that only the grant of mining leases of minerals covered under Schedule-I should be the subject matter of Central Government. Renewal and transfer of mining leases as well as grant and renewal of prospecting licences of minerals covered under Schedule-I of MMRD Act, 1957 should not require any approval of the Government of India to expedite the disposal of these applications.