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National Mineral Policy 2019

Published: 7th Mar, 2019

National Mineral Policy (NMP) 2019 has been approved by the cabinet on 28th February, 2019.


National Mineral Policy (NMP) 2019 has been approved by the cabinet on 28th February, 2019.


NMP 2019

  • It replaces the extant NMP 2008.
  • Ministry of Mines constituted a committee in 2017 under the chairmanship of Dr. K Rajeswara Rao to review NMP 2008.
  • Based on the received feedback and the comments/ suggestions from the Central Ministries/ Departments the Ministry of Mines finalized the NMP 2019.
  • It is aimed to have a more effective, meaningful and implementable policy that brings in further transparency, better regulation and enforcement, balanced social and economic growth as well as sustainable mining practices and sustainable mining sector development in future while addressing the issues of project affected persons especially those residing in tribal areas.

Features of the policy:

    1. Introduction of Right of First Refusal for RP/PL holders
    2. Encouraging the private sector to take up exploration
  • Auctioning in virgin areas for composite RP cum PL cum ML on revenue share basis
    1. Encouragement of merger and acquisition of mining entities and
    2. Transfer of mining leases and creation of dedicated mineral corridors to boost private sector mining areas.
    3. The 2019 Policy proposes to grant status of industry to mining activity to boost financing of mining for private sector and for acquisitions of mineral assets in other countries by private sector
  • It also mentions that Long term import export policy for mineral will help private sector in better planning and stability in business
  • The Policy also mentions rationalize reserved areas given to PSUs which have not been used and to put these areas to auction, which will give more opportunity to private sector for participation
    1. The Policy also mentions to make efforts to harmonize taxes, levies & royalty with world benchmarks to help private sector
    2. Concept of Inter-Generational Equity that deals with the well-being not only of the present generation but also of the generations to come
    3. The Policy also proposes to constitute an inter-ministerial body to institutionalize the mechanism for ensuring sustainable development in mining.

Changes introduced in the NMP, 2019:

    1. The focus on make in India initiative and Gender sensitivity in terms of the vision. 
    2. In so far as the regulation in Minerals is concerned, E-Governance, IT enabled systems, awareness and Information campaigns have been incorporated. 
  • Regarding the role of state in mineral development online public portal with provision for generating triggers at higher level in the event of delay of clearances has been put in place. 
    1. NMP 2019 aims to attract private investment through incentives while the efforts would be made to maintain a database of mineral resources and tenements under mining tenement systems.  
    2. The new policy focusses on use coastal waterways and inland shipping for evacuation and transportation of minerals and encourages dedicated mineral corridors to facilitate the transportation of minerals. 
    3. The utilization of the district mineral fund for equitable development of project affected persons and areas.

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