Saturday, June 25, 2022

Pre-embedded clearances a step towards expediting operationalisation of mines: FICCI

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  • This is going to attract huge investments in the mining and metals sector which has the potential to make the nation self-reliant, Rahul Sharma, co-chair, FICCI Mining Committee said

  • It would fast track the operationalization of mines which in turn would lead to employment generation, a co-chair of the committee said 

New Delhi: While welcoming the decision of the Ministry of Mines to expedite the operationalisation of mines post auctioning, Tuhin Mukherjee, Chair, FICCI Mining Committee & Managing Director, Essel Mining and Industries Ltd said on Friday, “The guidelines would help in increasing mineral production and supply in the country, providing the much needed raw material minerals to end-use industries like steel, aluminium, power, cement etc.”

‘Pre-embedded clearance a positive step towards Aatmanirbhar Bharat’

Rahul Sharma, co-chair, FICCI Mining Committee said, “The auction of mineral blocks with pre-embedded clearances is another significant reform taken by the government. This is going to attract huge investments in the mining and metals sector which has the potential to make the nation self-reliant, reduce import bills by US$ 100 billion and create multiple livelihood opportunities.”

Pankaj Satija, co-chair, FICCI Mining Committee said, “The concept of pre-embedded clearance for mining projects is really a positive step towards reaching Atmanirbhar Bharat in the mineral space. Coming at a time when the country needs to hike up mineral production to support the resurgence of mineral-based manufacturing sectors post nCovid19, this will certainly boost investment in the sector and ensure faster returns by guaranteeing commencement of production in quick time.”

‘Quick operationalisation of mines will lead to employment generation’

Sumit Deb, Co-Chair, FICCI Mining Committee said, “Awarding leases through a fair and transparent manner is very crucial, however due to multiple approvals required, operationalization of mines had been getting delayed in India. 95 leases have been allocated through auction since the introduction of the auctioning regime, however only a couple of those have been executed due to lengthy approval processes. Unlike some of the major mining economies which take about a year to operationalise a mining lease, it takes 4-8 years in India. Thus, auction of mineral blocks with pre-embedded clearances is a welcome step. It would fast track the operationalization of mines which in turn would lead to employment generation, increased revenue for the state and increase the contribution of mining to Indian GDP which has been declining gradually for over a decade.”

FICCI noted that with such initiatives, the government has shown its commitment to usher in the much-needed reforms in the mining sector and revive its growth post pandemic nCovid19. Availability of natural resources in general, and minerals and metals, in particular, would play a crucial role in determining India’s growth trajectory towards becoming a US$5-trillion economy.

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