Karnataka to introduce new mineral policy by Dec 2014

A top government official as saying that in an effort to encourage value addition and attract investments to the iron and steel sector, the Karnataka government aims to introduce a new mineral policy by December.

Mr Tushar Girinath, Mines Secretary, said that “The draft policy is ready and sent to the government. We are waiting for the approval to circulate it to stakeholders from the industry for their views and comments. The policy will be announced by December.”

Mr Girinath said that “The new policy should have been announced by now. We are waiting for the government approval before finalising the features. It will be out by December.”

However, without giving any details of the new features proposed in the policy, he said that the government intends to encourage value addition in the mining sector. Under the new policy, it is proposed to allot fresh mining leases to those who add value like the iron and steel manufacturers

The existing mining policy was introduced in 2008. The state’s first mineral policy was announced way back in 2000.

Mr Basant Poddar, senior vice-president, FIMI, said that “We are aware that the government plans to introduce a new mining policy. However, the government has not consulted the industry nor FIMI on the new policy. Every government wants to tweak the existing policy. But, the new policy should be within the ambit of the Central policy, the MMDR Act. Any manufacturing activity is a value addition. In the mineral sector the value addition starts right from the identification of mining reserves, reconnaissance, extracting ore, processing, palletisation, beneficiation and steel making. The government should take note of all these while deciding the value addition.”