Outcome Budget 2013-2014

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Outcome Budget 2013-2014 GOVERNMENT OF INDIA OUTCOME BUDGET 2013 - 2014 MINISTRY OF MINES MINISTRY OF MINES OUTCOME BUDGET 2013-14 CONTENTS Page No. Executive Summary 1 to 20 Chapter 1 Mandate, Goals and Policy 21 to 44 Framework Chapter II Outlays, Output and Outcomes 45 to 62 Chapter III Reform Measures and Policy 63 to 73 Initiatives Chapter IV Review of Past Performance 74 to 118 Chapter V Financial Review 119 to 127 Chapter VI Review of Performance of Statutory and 128 to 135 Autonomous Bodies Annexure I Outcome Budget 2013-14 136 to 160 Annexure II Details of Actual Achievements 161 to 187 vis-à-vis Intended Outcomes indicated in Outcome Budget 2011-12 Annexure III Details of Actual Achievements vis-à-vis 188 to 213 Intended Outcomes indicated in Outcome Budget 2012-13 Annexure-IV Surrender of Savings Fund 2011-12 214 - 215 Appendix -I Projected Outcome of GSI 2013-14 216 - 217 Appendix -II On-going Schemes/Programmes 218 to 229 of S&T Appendix- III New Schemes of S&T 230 - 231 Executive Summary EXECUTIVE SUMMARY Ministry of Mines is responsible for survey and exploration of all minerals, other than natural gases, petroleum and atomic minerals; for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel etc. and for administration of the Mines and Minerals (Regulation and Development) Act, 1957 in respect of all mines and minerals other than coal, natural gas and petroleum. List of subjects allocated to the Ministry of Mines is given below: List of subjects allocated to the Ministry of Mines 1. (a) Legislation for regulation of mines and development of minerals within the territory of India, including mines and minerals underlying the ocean within the territorial waters or the continental shelf, or the exclusive economic zone and other maritime zones of India as may be specified, from time to time by or under any law made by Parliament. (b) Regulation of mines and development of minerals other than Coal, Lignite and Sand for stowing and any other mineral declared as prescribed substances for the purpose of the Atomic Energy Act, 1962 (33 of 1962) under the control of the Union as declared by law, including questions concerning regulation and development of minerals in various States and the matters connected therewith or incidental thereto. 2. All other metals and minerals not specifically allotted to any other Ministry/Department, such as Aluminium, Zinc, Copper, Gold, Diamonds, Lead and Nickel. 3. Planning, development and Control of, and assistance to, all industries dealt with by the Ministry. 4. Geological Survey of India 5. Indian Bureau of Mines 6. Metallurgical Grade Silicon Constitutional and Legislative provisions The distribution of the Legislative powers between the Central Government and State Government is governed by Part XI of the Constitution of India. Article 246 of the Constitution of India refers to the Union List-I, State List-II and Concurrent List-III Outcome Budget 2013-14 ( 1 ) Executive Summary containing entries as given in the Seventh Schedule. Entry 54 of List-I of the Constitution gives powers to the Central Government for regulation of mines and mineral development to the extent to which such regulation & development under the control of the Union is declared by Parliament by law to be expedient in the public interest. The State Governments on the other hand have been given powers under Entry- 23 of List-II for regulation of mines and mineral development subject to the provisions of List-I with respect to regulation and development under the control of the Union. Parliament has enacted the Mines and Minerals (Development & Regulation) Act, 1957 (MMDR Act, 1957) under Entry 54 of List-I to provide for the regulation of Mines and development of minerals under control of the Union. In pursuance of the reforms initiated by the Government of India in July, 1991 in fiscal, industrial and trade regimes, the National Mineral Policy was announced in March, 1993. The National Mineral Policy recognized the need for encouraging private investment, including state-of-the-art technology in the mineral sector. Further, the policy stressed that the State Governments, shall continue to formulate legal measures for the regulation of mines and the development of mineral resources to ensure basic uniformity in mineral administration so that the development of mineral resources keeps pace, and is in consonance with the national policy goals. Though it has been the endeavour of the Ministry of Mines to encourage greater investment in exploration and mining, there is a need to make sustained efforts to increase the same and remove bottlenecks which hinder the productivity and efficiency of this sector. Recognising this need and to further improve the investment climate for mining in the country, the Planning Commission set up a High Level Committee under the Chairmanship of Shri Anwarul Hoda, Member, Planning Commission, to review the National Mineral Policy and recommend possible amendments to the MMDR Act. The High Level Committee submitted its report to the government on 20th July, 2006 with recommendations on changes in the National Mineral Policy to attune it to the present requirements of the world economy for evolving of mining code adapted to the best international practices, streamlining and simplifying of procedures for grant of mineral concessions to reduce delays, strengthening the infrastructure for mining activities and recommendations on other issues for improving the environment for investment in the mining sector. National Mineral Policy, 2008 has been approved by the Government on 13.3.2008. In pursuance of the new policy statement, the Ministry of Mines initiated an exercise to suitably prepare a mining legislation in consultation with all the stakeholders including State Government, Industries, concerned Ministries/Departments of Central Government, Civil Rights Groups/NGOs and concerned public. A new draft Mines and Minerals (Development & Regulation) Bill, 2011 was prepared after eight round of consultations with the stakeholders, including the State Government., Industry, concerned Central Government Ministries/Departments & civil rights Groups/NGOs. The draft Bill was approved by the Government on 30th September 2011 and it was introduced in the Lok Sabha on the 12th December 2011. The draft Bill has been referred Outcome Budget 2013-14 ( 2 ) Executive Summary to the Standing Committee on Coal and Steel on 5th January 2012, and is under consideration of the Standing Committee. Illegal Mining - steps taken to curb illegal mining: In order to take effective steps for prevention of illegal mining State Governments have been empowered to frame Rules under Section 23C of the MMDR Act, 1957. Regular meetings with State Governments are being conducted to review the progress made regarding framing of rules under Section 23C of the MMDR Act, 1957, constitution of Task Force/Flying Squads at State and district level having a representative of IBM and furnishing of quarterly returns on illegal mining and action taken thereon. So far 18 States have framed rules under Section 23C of the MMDR Act, 1957 and 21 States have constituted Task Force/Flying Squads. Steps taken by the Central Government to curb illegal mining: In the First phase (1999), the Central Government amended the Mines and Minerals (Development and Regulation) Act, 1957, to empower the State Governments to take action against illegal mining by giving them powers to enter and inspect any mine, penalize transportation and storage of illegal mined minerals, confiscate illegally mined minerals, tools, equipment and vehicles, and frame separate Rules under the Mines and Minerals (Development and Regulation) Act, 1957 for curbing illegal mining. The results were not encouraging as many States did not actively use their powers. In the Second Phase (since 2005 onwards), the Central Government adopted a three- pronged strategy, whereby the State Governments were required to set up Task Forces at District and State level for illegal mining, immediately frame separate Rules under the Mines and Minerals (Development and Regulation) Act, 1957 and put them in operation, and furnish quarterly reports on cases of illegal mining detected by the State Governments, and action taken in the matter. In the Third Phase (September 2009 onwards), in order to evolve a holistic plan using modern technology to curb illegal mining, all the State Governments have been requested to prepare an Action Plan on the following points: Use of Satellite Imagery sourced from State Remote Sensing Organizations to curb illegal mining, Developing reliable mechanism in the State Government for collecting and monitoring of data regarding prices of various minerals, wherein the price trend could indicate possible chances of illegal mining in certain minerals, Developing a mechanism for integrated monitoring of information on movement of trucks/ vehicles from mining areas to ports/ markets/ manufacturing units which use mineral ores, and correlating the same with the production data capture any spurt in mining activity, Maintaining and collecting information from ports, custom authorities, Ministry of Commerce on export of ores out of the country, Outcome Budget 2013-14 ( 3 ) Executive Summary Bar-coding, use of Holograms for transport permits, royalty paid permits etc., as a means of tracing unauthorized transport or sale of ores, Compulsory registration of all the end-users and issue of directives to the end- user industries to mandatorily check payment
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