Centre disagrees with Rajasthan govt mineral policy

Last Updated: Sunday, March 11, 2012 - 13:56

New Delhi: The Centre has expressed its
disagreement with Rajasthan`s government mineral policy that
reserves mineral-bearing areas in favour of state undertaking
Rajasthan State Mines and Minerals (RSMML).

"State Government policy to reserve mineral bearing areas
in favour of RSMML cannot be agreed to by the Central
Government... the policy for reservation... did not confirm to
the provisions of the MMDR Act, 1957," the Mines Ministry has
said in a letter to Rajasthan government.

The development comes in the wake of Rajasthan government
taking a policy decision to reserve the Rock Phosphate
deposits for exclusive use by Rajasthan State Mines and
Minerals (RSMML).

Fertilizer minerals are in short supply in the country,
which was incurring a high import bill on this account, the
Ministry said in its letter.

"While the country had limited resources of fertilizer
minerals, which needed beneficiation due to its low grade
nature, it was necessary to ensure that mineral policies
encouraged and incentivized utilization of these important
resources for the country rather than impose restrictions on
the resources," it added.

Earlier, the Fertilizer Ministry has pointed out that the
policy restriction of the State Government to reserve areas
for exclusive mining of fertiliser by RSSML was seriously
impacting the growth plan of FAGMIL (FCI Aravali Gypsum &
Minerals India Ltd) and other fertiliser industries keen to
use the resources identified in Rajasthan.

The Mines Ministry also asked Rajasthan government to
reconsider its decision to restrict grant of mineral
concessions in tribal areas, especially to such persons who
have applied for progression to next stage of concession after
completing exploration under a licence.

PTI



First Published: Sunday, March 11, 2012 - 13:56

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