National Mineral Exploration Policy (Non fuel and Non-coal Minerals) Attracting Private Players Himanshu Shukla Ministry of Mines

Mineral Exploration  No linkage between exploration and grant of mining lease Why should one invest ?  Project Assigned: Alternate models for attracting private players for exploration within the new framework Reconnaissance Permit Prospecting License Mining Lease MMDR Act, 2015

Basket of Incentives 1.Explorer to have an ‘attractive share in auction proceeds’ Feasible options:  The successful bidder pays to the explorer an attractive amount for the expenditure incurred indexed to the value of the reserves.  The Government pays to the explorer a percentage of earnings from the auction proceeds. (transferable right)

Incentives (Contd.) 2. Tax incentives on investments in Exploration companies. (flow through share mechanism) 3. Reducing restrictions on free availability of preliminary exploration data. 4. Making exploration data trade seamless.

Incentives (Contd.) 4. Sliding scale for Permit Fee. 5. ‘Survey and Exploration’ in the negative list for service tax. 6. Relaxation in customs duty for advanced technology. 7. Tax incentives in respect of prospecting for minerals to be on par with those for prospecting of oil and natural gas.

Other Measures to Boost Exploration 1.Deep Seated /Concealed Minerals (ex. Diamond and Gold) ( huge investment required ) MECL and State PSU’s to form Joint Ventures with global players. The ‘preferred rights over mining lease’ system may be considered.

Other Measures(contd.) 2. State PSU’s to be encouraged to take-up exploration 3. Capacity Building of State Exploration Companies (Funds, Functionaries and Technology)

4. Infusion of ‘state of the art’ Technology - Signing MOU’s with advanced countries to access the latest technology. -Creating a trained workforce.