NEW DELHI: In a major step aimed at boosting mineral production in the country and bring more mineral blocks to the auction table, the Union Cabinet on Wednesday approved a proposal for doing away with the distinction between captive and non-captive mines.
Captive mines are those that produce coal or mineral for exclusive use by the company that owns the mines, while non-captive ones those that produce as well as sell the fuel. With the distinction removed, now captive mines will also be able to sell their stock.
These reforms will be carried out by amending certain sections of the Mines and Mineral (Development and Regulation) Act, 1957. A bill to amend these will be placed in Parliament in the upcoming session, highly placed sources said.
According to officials, private entities will also be engaged in exploration works now. Simplification of exploration regime will be done to facilitate seamless transition from exploration to production, they explained. The Cabinet also cleared introduction of an index-based mechanism by developing a National Mineral Index for various statutory payments.