MINING OF DIAMONDS AND PRECIOUS MINERALS
Since April 1, 2002 on the recommendations
of the State Government of Andhra Pradesh, approval have been
given by the Central Government for grant of 5 prospecting licences
for diamond and other precious stones. In addition, approvals
have been given by the Central Government for grant of 32 reconnaissance
permits in favour of seven companies.
The National Mineral Policy (NMP)
of 1993 recognised the need for encouraging private investment
including foreign direct investment in mineral sector. As per
the NMP, mining of 13 minerals (including diamond), hitherto reserved
for exclusive exploitation through public sector has been thrown
open for private investment. Any Indian National or a Company
registered in India can undertake mining operation for diamond
and precious stones. The Central Government has been urging the
State Governments from time to time to pursue investor friendly
policy to encourage investment in mineral sector including diamond
and precious stones.
Under Section 10(3) of the Mines
and Minerals (Development and Regulation) Act, 1957 mineral concessions,
including Prospecting licences are granted by the State Government
concerned. However, proposals for prior approval of the Central
Government for grant of mineral concessions for minerals specified
in the First Schedule to the aforesaid Act originate from the
respective State Governments and are processed and disposed of
by the Central Government as per the provisions of Section 5(1)
of the Act.
In the last two years besides
Andhra Pradesh, reconnaissance permits for diamond and precious
stones have been granted in the States of Karnataka, Orissa &
Madhya Pradesh. Recently five proposals for grant of reconnaissance
permits in the State of Chhattisgarh have also been approved in
favour of subsidiary companies of M/s De Beers Consolidated Ltd.
So far no diamond deposits or precious stone deposits have been
reported in the areas under reconnaissance permits/prospecting
licences.
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