The Union Minister for Mines and Steel, Shri Narendra Singh Tomar addressing at the MINING INDABA 2015, at Cape Town, in South Africa on February 09, 2015.
The Union Minister for Mines and Steel, Shri Narendra Singh Tomar addressing at the MINING INDABA 2015, at Cape Town, in South Africa on February 09, 2015.

Major initiatives and Achievements of Ministry of Mines:-   


(i) MMDR Act, 1957 – Introduction of Auctions

The MMDR Act, 1957 has been amended by the MMDR Amendment Act, 2015 w.e.f. January, 2015. Through this amendment, the Central Government has replaced the first-come-first-served / discretionary mechanism for grant of mineral resources by a transparent and competitive auction process. This will also enable the states to obtain an enhanced share of the value of mineral resources. Provisions have been made to ensure certainty of tenure and easy transferability of mineral concession.

In order to implement this Policy relevant Rules like Mineral (Evidence of Mineral Contents) Rules, 2015 and Mineral (Auction) Rules, 2015 have been framed and notified by the Government. Model Tender Document (MTD) have also been made available to the State Governments to facilitate them to commence auction. Pursuant to this the State Governments have commenced to issue NITs. Gujarat, Rajasthan and Maharashtra have issued NITs in November, 2015. Other State Governments like Karnataka and Chhattisgarh are likely to follow suit shortly.

(ii) District Mineral Foundations (DMF)

  • Section 9B of the MMDR Act, 1957 prescribes the establishment of District Mineral Foundation (DMF) in any district affected by mining related operations. The objective of the DMF is to work for the interest and benefit of persons, and areas, affected by mining related operations.
  • The manner in which the DMF shall work for the interest and benefit of persons and areas affected by mining, as also the composition and functions of the DMF, shall be prescribed by the State Governments.

DMF is to be funded in the following manner:

  • Ten per cent of the royalty in respect of mining leases or prospecting licence-cum-mining lease granted on or after 12.01.2015.
  • Thirty per cent of the royalty in respect of mining leases granted before 12.01.2015.
  • Directions have also been issued to all States under section 20A of the MMDR Act, 2015 to: (i) specify that the DMFs shall be deemed to have come into existence with effect from 12.1.2015; and (ii) to incorporate the ‘Pradhan Mantri Khanij Kshetra Kalyan Yojana’ into the rules framed by them for the District Mineral Foundations.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

  • The Pradhan Mantri Khanij Kshetra Kalyan Yojana will be implemented by the DMFs of the respective districts using the funds accruing to the DMF. The overall objective of PMKKKY scheme will be (a) to implement various developmental and welfare projects/programs in mining affected areas, and these projects/ programs will be complementing the existing ongoing schemes/projects of State and Central Government; (b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and (c) to ensure long-term sustainable livelihoods for the affected people in mining areas.

(iii) Accelerating Mineral Exploration Activities in the country

National Mineral Exploration Trust (NMET)

These rules have been notified on 29.06.2015. National Mineral Exploration Trust is aims to promote exploration in the country. Lease holders have been mandated to contribute a sum equivalent to 2% of the royalty to NMET.

The government has opened up the arena of exploration to other agencies and has, accordingly, notified five Central PSUs to carry out prospecting operations without obtaining prospecting license. The Central Government vide notification dated 16.2.2015 notified five Central Government Public Sector Undertakings viz. Rashtriya Ispat Nigam Limited (RINL), Steel Authority of India Limited (SAIL), National Mineral Development Corporation (NMDC) Limited, Kudremukh Iron Ore Company (KIOCL) Limited, and Manganese Ore (India) Limited (MOIL) under second proviso to section 4 (1) of the MMDR Act, 1957.

  • Mineral Exploration Corporation Ltd. is being strengthened to intensify its detailed exploration activities by carrying out exploration of the deposits identified by GSI. These initiatives are expected to give a huge boost to the mineral exploration initiatives of the government.

(iv) Increased revenue to States due to revision in rates of royalty

The Central Government has revised the rates of royalty for major minerals (except for coal, lignite and sand for stowing) on 01.9.2014. State Governments, who receive 100% of the royalty, are benefited through this increase in rates of royalty for major minerals. For some of the States, this revision in rates of royalty may have resulted in an increase of more than 45% in revenue collection through royalty.

(v) Delegation of powers to States through notification of 31 minerals as ‘minor’ minerals

The Central Government has notified 31 minerals as ‘minor’ minerals on 10.2.2015 to delegate entire regulation for these 31 minerals to States. This increased the number of minerals notified as ‘minor’ minerals from 24 to 55. It will empower States to frame their own rules for grant and regulation of these 31 minerals. States are also enabled to prescribe the method for grant of mineral concessions, rates of royalty, contribution to DMF etc. for these minerals.


Acceleration of the National Geochemical Mapping (NGCM) and National Geophysical Mapping (NGPM) Programmes of GSI

In keeping with the priorities of the Central Government for national development, plans for accelerating the geochemical and geophysical mapping of the country have been prepared. NGCM and NGPM programs have a significant import in the exploration for concealed mineral deposits besides other geo-scientific activities. Accordingly, the core areas of the identified Obvious Geological Potential area of the country are envisaged to be covered by NGCM within the next two years, and by NGPM, within the next three years, starting from 2015-16. It is expected that with this, mineral exploration in the country will get a huge fillip.


Major Highlights of Performance

  • Highest sales turn over (Rs.7771 crore) in FY14-15 since inception
  • Highest profit (Rs.1322 crore) in last seven years – 106% growth over previous year
  • Highest net foreign exchange earning CPSE in the country as per Public Enterprise Survey 2013-14
  • Dividend pay-out of Rs 451 crore in FY 2014-15 @ 35%
  • Outshining private peers in performance in Aluminium sector

CSR Schemes

  • Rs.19.10 crore has been spent in various CSR projects of NALCO in 2014-15
  • Under Swachh Vidyalaya Abhiyan, 433 toilets (which includes 79 toilets beyond MHRD target) have been constructed in 202 schools of Angul, Koraput and Visakhapatnam at a cost more than Rs. 4 crore.
  • Residential education for 655 poor children from 18 periphery villages of Damanjodi is being sponsored by Nalco Foundation at 3 schools i.e. Kalinga Institute of Social Sciences (KISS, Bhubaneswar), KDF Model School (Jeypore) and Bikash Vidyalaya (Koraput)
  • NALCO KI LADLI Scheme introduced in Aug’15 – 100 BPL girl students from periphery villages of Angul and Damanjodi to be benefitted every year

Awards & Accolades

  • CAPEXIL Export Award (for 27 years in succession since 1988)
  • Alumina Refinery awarded Kalinga Safety Award-2014 in Sept’15.
  • Panchpatmali Bauxite Mines awarded Pollution Control Excellence Award-2015 from OSPCB in Sept’15.
  • EEPC’s Star Performance Award for outstanding export performance in 2013-14.
  • Indian Institute of Industrial Engineering (IIIE) Award for Performance Excellence


Major Achievements

  • Mine Expansion – Malanjkhand 5 million tonne per annum underground copper mine project is the flagship mine expansion project of HCL. Foundation stone laying ceremony was held at Malanjkhand on 12th April 2015 and work commenced at site has commenced after obtaining all the clearance.
  • Re-opening of closed copper mines of Jharkhand – Obtained environment clearances from MoEF for Kendadih , Rakha & Chapri- Sidheswar mine projects located in Jharkhand.
  • Green Technology – Initiated pilot scale test for development of hydro-metallurgy technology for extraction of copper metal from sulphide copper concentrate. This will help to reduce the carbon foot prints in the manufacturing of refined copper as no fuel oil will be consumed in the manufacturing process.
  • Extraction of Nickel as by product – The company has identified technology to recover nickel from the waste generated during the copper refining process. The plant is under commissioning at Ghatsila smelter & refinery  plant. At present there is no primary producer of nickel metal in the country and this project will facilitate the production of primary nickel metal in the country for the first time.
  • Swachha Vidyalaya Abhiyan – The company has actively participating in the Swachha Vidyalaya Abhiyan and has committed expenditure for construction/repair of 197 toilets covering 160 schools in the states of M.P, Jharkhand & Rajasthan.



Unearthing mineral wealth for higher growth path
Unearthing mineral wealth for higher growth path

Mineral Resources: Added 6048 million tonnes of resources of various minerals in the National Mineral Inventory (NMI) during the period under review from April, 2014 to September, 2015, It includes:

Name Mineral   Resources`          States

                (Million Tonnes)

Coal       4901       Chattisgarh,                                        Telengana and                                  Madhya Pradesh.

Lignite   392         Tamil Nadu

Limestone           519         Nagaland and                                    Meghalaya.

Copper                 11           Rajasthan

Lead-Zinc             0.5          Rajasthan

Gold      3              Jharkhand

Iron Ore               221         Karnataka

Exploratory drilling:

  • A total of 5.92 Lakhs metres of exploratory drilling completed during the period under review (April’14 – September’15)
  • Out of which 4,09 Lakhs metres of exploratory drilling carried out during 2014-15 for establishing mineral reserves in the country.
  • This is all time high in 43 years of MECL.

Turn over- profit:

Highest turn over and profit since inception during 2014-15.

Exploration of Iron Ore:

Completed reserves / resources estimation of iron ore for fifteen mines in Bellary district of Karnataka in a record period of 12 months.


Paid highest ever dividend of Rs. 11.95 crores to Government of India for the year 2014-15

Swatch Bharat Abhiyan:

Achieved target of construction of 27 toilets in 14 schools in Madhya Pradesh and Telangana states under Swatch Bharat Abhiyan before 31st March, 2015.

Fund utilization:

MECL has utilized fully the plan outlay for promotional exploration on behalf of Ministry of Mines.

In addition, Mineral Exploration Fund (MEF) was also utilized which was unused since last 12 years.

MoU rating-award:

Mou rating for the year 2013-14 is under “EXCELLENT” category.

Rating for 2014-15 is also expected to be under excellent category.

Also rated excellent under Corporate Governance by Govt. of India.

MECL has won “Silver Award” at 4th Annual Greentech CSR Award 2014 in service sector for outstanding achievement in Corporate Social Responsibility on 29th January, 2015 at Kolkata.


(i) Jawaharlal Nehru Aluminium Research Development and Design Center (JNARDDC)

  • Process developed for low soda (Na2O) hydrate (value addition) in Bayer circuit which can lead to import substitution.
  • Portable analytical kit developed for field analysis for mineral prospecting, exploration and mining activities at remote areas.
  • Provisional patent filed for “Process for selective insitu dissolution of alumina & silica bearing mineral phases in bauxite at room temperature for geo –analytical application” and two other R&D process.
  • Certificate of appreciation by International Bauxite Alumina Aluminium Society (IBAAS) for significant contribution in environment/waste management under task force of Asia Pacific AP-7 partnership program on clean development and climate.
  • IEBR for year 2014-15 was Rs.278 lakhs compared to Rs.253 lakhs of 2013-14.

Commercialization of R&D process

National Aluminium Co. Ltd, Odisha commercialized the R&D process developed by JNARDDC for “Development of heat treatment process for destruction of toxic cyanide and recovery of valuables from Spent Pot Lining Material (SPL)” with M/s Green Energy Resources, Odisha.

(ii) National Institute of Miners’ Health (NIMH)

  • Detailed protocol for assessment of vibration hazard has been made available to the Indian mines. This has enabled the industry to take corrective actions wherever necessary and also it can be used as a decision making tool for selection of less hazardous seat or equipment as a whole.
  • Noise mapping facility along with latest technology has been made available to the mining industry.
  • In house Multiplex ELISA protocol was developed by using panel of six antibodies promising biomarkers is rapid, easy to perform and cost effective technique which is used for early diagnosis of NIHL.

Detection of Silicosis among stone mine workers in Rajasthan

  • NIMH evaluated chest radiographs of 471 persons with history of work in stone mines from Karauli and Dholpur districts of Rajasthan and detected 202 cases of Silicosis. Following NIMH report, the district administration has started free check up camps for Silicosis victims and the State Government is extending full support to them. The Government of Rajasthan has sanctioned Rs.3.00 crores as relief measures besides free treatment and sanction of BPL status to Silicosis victims. Pneumoconioses Medical Boards have started functioning in Jaipur, Udaipur, Jodhpur and Ajmer Medical Colleges for medical examination of Silicosis victims under Workmen Compensation Act, 1923.

(iii) National Institute of Rock Mechanics (NIRM)

R&D achievements:

  • ontrolled blasting carried out for a canal project near highly industrialized zone for SSNNL, Gujarat, and for Kota Atomic Power Plant.
  • 3-D numerical modeling of Mangdechhu Hydro-electric Project, Bhutan, and for Tehri Pumped Storage Project, Uttarakhand.
  • Engineering geological studies for Pranahitha-Chevella Sujala Shravanthi (Telengana) Scheme and Rajasthan Atomic Power Project – Units 7 & 8, Rawatbhata.
  • Geophysical resistivity image captured below the Haldia-Barauni oil pipeline of IOCL to identify old mining galleries below.
  • Design of controlled blasting for speedy construction of Road Under Bridges (ROBs) to South Western Railways.
  • In-situ hydro-fracturing, deformability and shear tests carried out at Attunli Hydro-electric Project, Arunachal Pradesh and at Wangchhu Project, Bhutan.
  • During the FY 2014-15, NIRM has successfully completed 51 projects valued Rs. 628.47 lakhs excluding the routine testing jobs.

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