Minerals and mining sector plays an indispensable role in accelerating growth and development of a nation. Most of the basic manufacturing industries depend on the availability and exploration of mineral resources. For example, coal and iron are the basic minerals needed for the growth of iron and steel industry. Similarly, minerals like mica, manganese, copper, lead and zinc are of economic importance with varying degree.

India is endowed with significant mineral resources. Under the Constitution of India, management of mineral resources is the responsibility of the Central Government and the State Governments in terms of the Union List and State List respectively. At the Central level, the Ministry of Mines is responsible for survey and exploration of all minerals (other than natural gas and  petroleum); for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel etc.; and for administration of the Acts relating to mines and minerals (other than coal and lignite).

The Mines and Minerals (Development and  Regulation Act, 1957, ('MMDR') and the Mines Act, 1952, together with the rules and regulations framed under them, constitute the basic laws governing the mining sector in India. The Mines and Minerals (Regulation and Development) Act, 1957 lays down the legal frame-work for the regulation of mines and development of all minerals other than petroleum and natural gas.

In order to encourage private investment and attract state-of-the-art technology in the mineral sector, the Ministry had formulated the National Mineral Policy in 1993 and offered several incentives and concessions to the investors. The policy has been successively revised to further open up the sector and increase the inflow of domestic and foreign investment. For example, since 1994 investment has been permitted for exploration and exploitation of thirteen minerals. Also, automatic approval of foreign direct investment up to 100% is permissible for exploration and exploitation of all non-fuel and non-atomic minerals (including gold and silver). However, for precious stones and diamonds, it is permissible up to 74%.

For a comprehensive review of the National Mineral Policy and to further improve the investment climate in the sector, Planning Commission has constituted a High Level Committee so as to attune the policy to the present requirements of the globalised economy. Given such initiatives by the Government, an investor has immense opportunities for discovery of sub-surface deposits using modern techniques and for manufacturing value added products.

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