Since February 2000, FDI upto 100 per cent is allowed in the mining and mineral sector through automatic route, except for diamond and precious stones, for which the limit for automatic approval is 74 per cent foreign equity. Now the FIPB approvals have increased to 70 indicating an expected FDI inflow of Rs. 3963 crore. As per the outcome of the conference of State Ministers of Mining and Geology held on July 14, 2001 and tripartite meeting of the Central Government, State Governments and the investors held on November 12, 2001, the Department of Mines has amended Mineral Concession Rules, 1960 and Mineral Conservation and Development Rules, 1988 vide Gazette Notification of January 11, 2002.

    The national mineral sector has recorded a positive growth of 1.07 per cent during the period April 2001-December 2001, as compared to the corresponding period in 2000-01.

    NALCO, after commissioning of first phase of expansion of its alumina refinery in June 2000 has increased the production capacity of refinery from 8 lakh tonnes per annum to 10.5 lakh tonnes per annum. The final phase of expansion to the level of 15.75 lakh tonnes per annum has been completed during December 2001. NALCO becomes the largest alumina producer in Asia with an exportable surplus of one million tonnes per annum after meeting internal demands. The expenditure on expansion programme in mines and refinery is expected to be of Rs. 1465 crore. The capacity of Hindustan Zinc Limited(HZL) after completion of expansion has been augmented from 152,000 tonnes per annum to 169,000 tonnes per annum.

    In case of HZL, the Government of India holds 75.92 per cent equity and has approved disinvestment of 26 per cent of equity in favour of sterlite on March 27, 2002. In NALCO, the Government of India holds 87.15 per cent equity and the Government has taken a decision to further disinvest 30 per cent of NALCO’s equity through market route from June 2002. Further the Government has decided to disinvest the total share holding (98.95%) in Hindustan Copper Limited to an interested buyer.

    Highlights of performance of GSI during 2001-02 are 4583 square kilometer of Specialized Thematic Studies; 15,347 line km of Multi-sensor surveys by Twin Otter Aircraft of GSI and Resource appraisal study of 206 villages of Assam, Meghalaya and Tripura and 35 villages in Beed district of Maharashtra.

    The mineral finds during the year include 1239 million tonnes of additional coal resources from MP, Chhattisgarh, Orissa and Maharashtra bringing the total reserve at 213.91 billion tonnes; 64 million tonnes of lignite in West Coast Lignite field bringing total reserves at 29.45 billion tonnes; 95 million tonnes of iron ore in Kendujhar district in Orissa; 2,23,362 tonnes of gold ore with an average grade of 2.88 ppm at Dugocha main block, Udaipur district of Rajasthan; 440 million tonnes of limestone in Meghalaya and over 23.23 million tonnes of commercial grade clay at Kasargod district in Kerala.

    GSI celebrated a year long programme to commemorate 150 years of GSI which included publications, international seminar at Kolkata and series of National seminars at State capitals.

    National Mineral Awards for the year 2000 were presented by Shri Ram Vilas Paswan, Union Coal & Mines Minister on February 27, 2002 to 29 Geoscientists and technologists for outstanding contribution in the field of Earth Sciences and Mining Technology. The National Mineral Award for Excellence 2000 was awarded to Padmashri Dr. B.P Radhakrishna.