Jaipur: The state government has finally amended the rules under minor mineral policy-2017 as proposed in the budget 2022-23, accepting the demands of the industry that would accelerate exploration and mining in a safe, environmentally friendly and productive manner.
Besides, in a huge relief to the lease holders, the government also extended the lease period expiring in 2025 to 2040, which is expected to bring in momentum as investors would be certain of the time period for their investments.
While the chief minister approved amendments, the mining industry is looking for the notification which would be key to implementing them on the ground.
Akshaydeep Mathur, secretary general of Federation of Mining Associations of Rajasthan (FMAR) said, “The extension of lease period will bring life back to many leases. We expect new investments of about Rs1500-2000 crore that will come due to the extension. The extension gives the lease holders the time comfort to make new investments which in turn will create jobs and generate other activities.”
As per the amendments, the government also removed the cap of four hectares for mining leases on khatedari land. Mathur said earlier people having mineral bearing land over 4 hectares were required to apply for multiple licences.
“With the restriction gone, even private investors would be interested who could get consent from the owners of khatedari land and apply for licences. Secondly, the bigger the mining area, the better the operability of the mine. It enhances productivity and safety. This is again expected to accelerate mining activities,” added Mathur.
As per the new rules, the transfer of mining leases will now attract five times of the dead rent or a maximum of Rs 5 lakh instead of 10 times paid earlier with a cap at Rs 10 lakh.
Mathur said that this is again a positive step for the sector as it will encourage people who want to enter the sector by partnering or taking over existing mines and making fresh investments.
“Sometimes, the mine owners do not have enough money to invest for expansion. He needs capital and that’s where he ropes in investors. If the entry barrier is made easy, more investors will come on board which will give a push to the sector,” added Mathur.
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