What's New :
Restructuring of National Mineral Exploration Trust (NMET) as Autonomous Body

Published: 9th Aug, 2021

Restructuring of National Mineral Exploration Trust (NMET) as Autonomous Body

Context

Union Minister of Coal, Mines and Parliamentary Affairs urged the officials of the Ministry of Mines to restructure   the National Mineral Exploration Trust (NMET) as an autonomous body.

About

About the National Mineral Exploration Trust (NMET)

  • The National Mineral Exploration Trust (NMET) was in 2015.
  • The trust was formed under the Mines and Minerals (Development and Regulation) Act, 1957.
  • The body is working for realization of mineral potential of the country in terms of mining activity.
  • NMET has a two-tier structure.
    • The apex body which is the Governing Body is chaired by the Minister of Mines. It holds the overall control of the Trust.
    • The Executive Committee which is chaired by the Secretary, Ministry of Mines, administers and manages its activities.
  • To implement its activities an NMET Fund has been established.

NMET Fund

  • The NMET fund is utilized to

    • undertake studies for mineral development
    • regional and detailed exploration of strategic and critical minerals
    • an aerial geophysical survey of obvious geological potential (OGP) and adjoining areas of India, sustainable mining with advanced scientific and technological practices, and mineral extraction metallurgy.
  • It also facilitates exploration activities by the provisions of the Act.

  • The holders of the Mining Lease and Prospecting Licence-cum-Mining Lease make payments which are equivalent to 2% of royalty, for minerals under the second schedule of the Act.

  • The Trust supports the regional and detailed mineral exploration in the country.

Need for the autonomy

  • There is a need to focus on the exploration of gold and rare earth along with other segments of India’s mineral exploration efforts. 
  • To streamline the system of extending financial assistance to statesfor enhanced exploration.
  • It will create an atmosphere of competition among states to step up exploration.
  • This will encourage mining exploration to be more frequent and result-oriented.

Mining in India

  • Mining is regulated in India under the Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act).
  • The MMDR Act was amended in 2015 with the intention of removing discretion and introducing more transparency in the allocation process.
  • A National Mineral Exploration Policy (NMEP) was brought out by the Government in 2016 followed by the National Mineral Policy 2019.
    • The policy supported the encouragement of the private sector to take up exploration and that “exploration should be incentivized to attract private investments as well as state-of-the-art technology, within the ambit of the auction regime, through Right of First Refusal at the time of auction.

Verifying, please be patient.

Enquire Now