CII Communique November 2012

miningthe world over, is to augment its exploration throughFirst Come First Serve (FCFS) basis for allocation ofmineral resources. Competitive bidding should onlybe considered for those mineral resources for whichsufficient information on grade, reserves, size, depth,beneficiation etc. are established. Moreover, the mininglease should be offered by competitive bidding only forthose reserves which are proven as per the internationallyaccepted United Nations framework classification.The Draft MMDR Bill, 2011 proposes several additionaltaxes and levies such as contribution to District MineralFoundation (DMF), Central and State Cess, as well asstipulations on Corporate Social Responsibility, and theresettlement and rehabilitation of affected families. Theimpact of this increase in taxation needs to be examinedand addressed. Further, the effective taxation level islikely to increase the cost of product to the customerand create inflationary pressure in the economy.It is important to ensure that mining and explorationactivities provide opportunities for inclusive growth tothe local populations and are conducted under thelegislative framework in the country. The Draft MMDRBill must address these concerns if it is to be a tool foreffectively harnessing India’s rich mining potential.The Mineral sector can contribute very significantly toIndia’s economic growth from its present level, as isseen in the experience of other countries which haveleveraged their mineral resources for growth. India canaim to improve the mining sector’s share in GDP to 8 %.The final legislative framework needs to support policiesfor long term development of the sector and ensure itssustainability and global competitiveness.CII’s forthcoming Global Mining Summit 2012, to beheld on 5 - 6 December in Kolkata, concurrently withthe 11th International Mining and Machinery Exhibitionscheduled from 5 - 8 December, will serve as a platformfor the Government of India to inform Indian industry andthe international business on the latest policy updates.It will also be a forum to seek feedback from industrywithin India and overseas, to understand the pulse ofthe sector. A Buyer Seller Meet is also part of the event.The Summit will focus mainly on exploration, technology,policy and regulatory frameworks and emerging businessopportunities in the Indian Mining sector, the discussionswill centre around strategies to achieve high growth inmining, the role of financial institutions for developing thesector, and environmental and safety issues. The event isbeing organized in association with the Union Ministry ofMines, Coal and Steel, India, and Coal India Ltd.To know more about the event, visit www.immeindia.in. For Summitregistration and other details, please contact Ravi Bhushan atravi.bhushan@cii.in. For exhibition details, please contact LakshmiSriram at lakshmi.sriram@cii.inThe Future lies inScientific MiningThe Indian MiningSector requires afacilitating environmentto draw investmentsand technology to takeit to a new level, saysMr N K Nanda, Chairman, CIINational Committee on Mining, andDirector, Technical, National MineralDevelopment Corporation Ltd, sharinghis views on the key challenges andopportunities aheadThe Indian Mining sector has been facing a number ofchallenges in recent times. Issues related to illegal andunregulated mining and delays due to environment /forest clearance have led to a demand-supply gap in keyraw materials as the production is not adequate to meetthe increasing industrial demand. There is an urgent needto increase the production of key raw materials like ironore and coal by opening new mines.The Governmentneeds to adopt a concerted effort to encourage theopening of new mines in mineral-rich states.India’s geological set-up is similar in many ways tothat of resource-rich countries like Canada, Australia,Brazil, South Africa and Chile. However, in India, themining sector accounts for just 2.5% of the GDP. TheGovernment needs to address specific challenges forpermits, clearances, licenses, infrastructure, funding,environment, land acquisition and encourage moreinvestments from both domestic and foreign players.The future of the mining sector lies in laying emphasison scientific mining so that state-of-the-art technologyand safe mining practices are adopted with adequatesupporting infrastructure.Key OpportunitiesThe projected investment in Infrastructure to the tune of $1 trillion envisaged during the 12th Five Year Plan augurs28 | November 2012 Communiqué