The Union Cabinet is likely to consider the National Mineral Exploration Policy (NMEP) on June 29. Once the policy is approved, the government can auction 100 blocks that have been identified by Geological Survey of India (GSI) for exploration. One of the important features of the NMEP is to attract private sector in exploration, besides involving state-run GSI, MECL and other notified agencies.
Through NMEP the Mines Ministry proposes to invite the private sector in exploration of mineral deposits by giving them a share in the revenue from mining operations after the area is auctioned. The revenue-sharing could be either in the form of a lump sum or an annuity, to be paid throughout the period of mining lease, with transferable rights.
Selection of private explorer is proposed to be done through a transparent process of competitive bidding through e-auction. For this, reasonable areas/ blocks for regional exploration will be earmarked/ identified by the government for auctioning.
States will also play a greater role by referring exploration projects, which can be taken up through National Mineral Exploration Trust (NMET). To encourage mineral exploration in the country, the Mines Ministry has already notified the NMET.