Mineral Policy - India in Business

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CONTENTS
A. PART -I
1.
2.
3.
4.
5.
6.
Introduction.
Mineral Resources of West Bengal.
Mineral-based Industries in West Bengal.
Infrastructure in West Bengal for Mining Activities.
Regulation of Mines and Minerals.
Table Showing the Reserves of Important Minerals Available in West Bengal.
B. PART-II
1. Objectives and Strategies of West Bengal Mineral Policy, 2002.
2. Survey and Exploration.
3. Strategy for Mineral Development and Exploitation.
4. Linkages of Mineral Development with Mineral-based Industries in the State.
5. Research and Development in Minerals.
6. Manpower Development.
7. Mineral Development and Protection of Environment.
8. Mines Safety and Rehabilitation of Affected People.
9. Supervision of Mining Activities— Simplification of Procedure.
10. Revenues from Mineral Exploitation.
11. Dereservation of the Mining Blocks.
12. Creation of Database on Mineral Resources.
13. New Initiatives to Promote Granite Industry.
14. Export Promotion.
15. Policy Implementation.
16. Conclusion.
WEST BENGAL MINERAL POLICY, 2002
PART – I
1. INTRODUCTON
1.1. Minerals are valuable natural resources and constitute vital raw materials for many
basic industries. Thus, the minerals are a major resources for development. Management of
mineral resources has, therefore, to be closely integrated with the overall strategy of
development, and exploitation of minerals is to be guided by long-term national and state goals
and perspectives. In this context it is found necessary to spell out in a statement the different
elements of the policy relating to development of the mineral resources of the State.
1.2. West Bengal, except Darjeeling district in the north and coalfields region in the West, is
covered almost completely by either alluvium or deeply weathered rocks. The rocky terrain, as a
whole ranging in age from oldest Archaean to the younger Tertiaries, covers about one fourth of
the total surface are of the State, i.e. approximately 21000 sq. km. Even though modern
technology has not been used adequately enough to unravel all the mineral resources of the State,
the total quantity of mineral resources so far assessed by unconventional methods of prospecting
is quite considerable.
2
1.3. It is imperative to achieve the best use of available mineral resources through
scientific methods of mining, beneficiation and economic utilisation. It is also necessary to
ensure indigenous availability of basic and strategic minerals to avoid disruption of core
industrial production. These aspects constitute the essentials of State Mineral Policy. The State
Mineral Policy also follows the basic guidelines stipulated in National Mineral Policy.
2. MINERAL RESOURCES OF WEST BENGAL.
2.1 Major Mineral Resources:
The state of West Bengal has an important position in mineral production of the country. In
terms of value, the state accounts for 3.8% of mineral production in India and occupies the seventh
position. Various metallic and non-metallic mineral deposits have been located both in the
Peninsular and Extra-peninsular parts of the State and some of them viz. coal, china clay, fire clay,
apatite, dolomite, limestone, silica sand, base metals, wolframite have economic importance. A
detailed account of the mineral resources are as follows:
Apatite
The apatite-magnetite mineralisation occurs in the southern part of the Purulia district. The
important apatite occurrences are located in Beldih and Mednitanr in the western part and Chirugora,
Purtaha Kutni and Dandodih-Gamardih in the eastern part.
Apatite deposit is being exploited by the West Bengal Mineral Development and Trading
Corporation Ltd. (WBMDTCL) since 1975 and marketed as direct application in fertiliser industry.
Asbestos
Discontinuous and irregular veins of asbestos occur along the shear planes and diagonal
joints within meta-dolerites, especially along their contacts with the schists and phyllites of the
Singhbhum Group around Birmadal and Chirugora areas of Medinipur District.
Barytes
Baryte veins occur impersistently along a 12 Km. long E-W trending belt in Purulia district
extending from Malthal in the East to Ukma in the West.
Base Metals
Occurrences of base metals are reported from Darjeeling, Jalpaiguri and Purulia districts. The
most important base metal deposits for lead and zinc in the Himalayan terrain near Gorubathan,
Darjeeling district are reported from Khar Khola, Mal Khola, Daling Chu and Sukha Khola blocks.
Minor Occurrences of copper-ore are reported from Pedong and Peshok areas of Darjeeling district.
In the Tamkhun area of Purulia district, copper mineralisation has been located within brecciated
sericite-quartz-schist of Proterozoic age.
China Clay
Extensive deposits of clay have been located in the different parts of Birbhum, Bankura,
Medinipur and Purulia. A few small but potential Occurrences are also available in Bardhaman
district. A number of deposits of Birbhum, Bankura and Purulia districts were investigated in details
and preliminary appraisal of some of the deposits of Bardhaman and Medinipur districts have been
in subsequent years till the mid-eighties.
Coal
It is well known that the Raniganj coalfield of West Bengal holds the earliest known
coalfield of the country. During the last 10-12 years, the Birbhum coalfield has been discovered. The
large potentiality of this recently discovered coalfield has already been established by the Coal Wing
of Geological Survey of India. Besides these two large coalfields, there are a few minor coalfields
and/or outliers of coal bearing rocks, like Darjeeling, Barjora, Hetampur and Tangsuli. Except
Barjora which holds some promise, others are of academic interest at present. Till date, Raniganj
coalfield is the only coal producing area of the state.
3
Coals in the Indian peninsular coalfields are contained in the Lower Gondwana Group of
sediments where two formations are known to be coal bearing. Of these the Barakar Formation is the
major repository of coal, while the younger, Raniganj Formation is a minor contributor. In Raniganj
coalfields however, Raniganj Formation holds the larger share of the total coal reserves.
Dolomite
Extensive deposits of dolomite occur in the Jainti area of Jalpaiguri district. However, the
entire dolomite deposits are comprised within the Buxa Tiger Reserve. Due to non-availability of
forestry clearance, the exploitation of dolomite in Jainti area is completely stopped at present.
Fire Clay
The Fireclay deposits are generally associated with the coal seams over a wide area in
Raniganj coalfield of the Bardhaman district and in some areas of the coalfield of Birbhum district.
Besides, some of the Chinaclay quarries of the Muhammad Bazar and Chandidaspur of Birbhum
district also yields fire clay. These clay deposits are developed within the Barakar formaiton of the
Gondwana Supergroup.
Kyanite
Discontinous bodies of Kyanite-quartz rocks are located in the district of Purulia.
Limestone
Geological Survey of India has carried out preliminary investigation of the reported
limestone occurrences in West Bengal since late forties. The occurrences of limestone around
Kudagara, Tutu Pahar, Subarnarekha river, Dankagarha Nala, Balamu and Maramu areas of Purulia
district and Harirampur and Salaipahari areas of Bankura district were also investigated in detail by
surface exploration.
Bedded limestones occurring within the Lower Panchets of the Gondwana are found near
Baghmara, NW of Panchet Hill; to the south of the Raniganj coalfield. The limestone and dolomite
deposits around Harirampur-Salai Pahari area located near the boundary between Purulia and
Bankura districts. In Darjeeling district, a few scattered occurrences of coarse, crystalline limeston
have been reported from Pall in Phenock stream and Bindi stream. A few limestone bands overlying
coal bearing formation are reported from Lish River.
Silica Sand
Huge reserve of sands are available from the beds of many rivers in the western and northern
part of the State. Most river sands are impure and may be used for producing inferior quality glass.
However, the sands of the Damodar and Ajoy rivers are on great demand for stowing in the coal
mines of the Raniganj Coalfield.
Ochre
Occurrences of ochres, bluish grey and yellow mottled clays are found in association with
lateritised sandstones and grits of Durgapur beds in the eastern part of Raniganj coalfields in
Bardhaman district. Ochre deposits are also found in Medinipur and Purulia districts.
Moulding Sand
Moulding sand, as they occur in nature, are fine to medium grained sand and contain an
appreciable amount of clay which act as bonding material. Some of the moulding sand occurences of
this State have been found suitable by the National Metallurgical Laboratory, Haora, for use in iron
and non-ferrous foundries. Moulding sand deposits are mainly available in Bardhaman and Bankura
districts.
4
Glass Sand
Good quality glass sands are rather scarce in the State. They are mostly impure, mixed with
iron oxides and suitable for coloured glasses. In Bankura district, fairly large occurrences of
quartzite of the Proterozoic are available which may be suitable for its utilisation in the glass
industry. In Bardhaman district, occurences of sandstone of the Gondwana Supergroup are reported
from Mohanpur. The sandstone after calcination may turn out suitable for use in glass industry. In
Purulia district, milky-white quartz veins within the Proterozoic rocks occur in Mirmi, Brindabanpur
and Inchadih areas.
Wolframite
The occurrences of Wolframite are located in Chhendapathar and Porapahar areas of
Bankura district. Occurrences of wolframite and scheelite have also been reported from Mansang
area of Darjeeling district.
2.2 Minerals of lesser economic importance:
Arsenopyrite
An occurrence of Arsenopyrite has been recorded on the northern flank of Sampthar hill,
Darjeeling district.
Beryl
Pale green hexagonal crystals of Beryl have been reported from Sulung Lohar and Belamu
hill of Purulia district.
Corundum
Dark blue stumpy Corundum crystals, varying in size from a fraction of a centimetre to about
2.5 cm. in diameter are occurring within the mica schist in Salbone, Paharpur and Bhagabandh areas
of Purulia district.
Fluorite
The occurrences of Fluorites within pegmatites have been reported from Suling Lohar, east
of Maramou and southern flank of Belamu hill of Purulia district.
Gold
Show of placer Gold is present in the streams/rivers flowing through the Proterozoic
volcanosedimentary pile of rocks in Purulia, Bankura and Medinipur districts.
Graphite
A vein of Graphite, about 1m in thickness occur within mica schist in Bangora, Purulia
district. Another occurrence of graphite has been recorded near Gobag, Purulia distirct. Presence of
graphite has been noted in the graphite schist of Daling Group in Rakti River ans as carbonaceous
material (mainly graphite) in Sukheapukh-Tanglu road, Darjeeling district.
Iron Ore
In Purulia district, titaniferous Iron Ores occur in pegmatites and quartz veins around
Manbazar, Gaurangdih, Tiluri and Jhalda. In Bankura district, magnetite ore occur as interlaminated
bands within quartzite and gneisses, varying thickness from 7cm to 1m and extending for 24 km in
length.
Manganese Ore
Lateritoid Manganese occur in the form of thin bands, lenses, lenticles, concretions etc. and a
variety of collform structures in the schits and quartzites of Singhbhum Group.
5
Mica
Occurrences of small books of Ruby Mica and also ordinary mica, varying in size from 2.5
sq. cm. to 20.5 sq. cm. have been reported from Adabana, Bhursa, Kumargarh in Purulia district and
Kaduria, Pirrabani area of Bankura district.
Pyrite
Occurrences of Pyrite is found with other sulphide within graphite bearing mica schist of the
Chhotanagpur Gneissic Complex in Karcha and Talmu areas of Purulia district.
Ree Mineral
Study of Chhotanagpur Gneissic Complex (CGC) along selected sectors in West Bengal by
second generation mapping revealed an association of 'bastnaesite', allanite and barite within an
abandoned pegmatite quarry near Nawahatu, Purulia district.
Caesium-Bearing Mineral
Interesting occurrences of pollucite, the only ore of caesium within pegmatite veins adjacent
to calc-silicate rock near Beku lying to the north of NPSZ has been reported recently.
Talc And Steatite
In Darjeeling district, occurrences of Talc and Steatite are located at Ramouk Khola. Steatite
has been reported from Lepachaks War Buxa in Jalpaiguri district. A number of occurrences of
steatite are reported from Khusbani, Puklunkata and Haludbani in Purulia district and Matgoda,
Maula Kuldiah and Panchpathar in Bankura district.
Dimension Stone
Reconnaissance survey for identification of possible Dimension Stone prospects in West
Bengal was initiated during Field Season 1994-95, in the Chhotanagpur Granite Gneiss Complex,
covering parts of Purulia, Bankura and Birbhum district.
Detail examination and scanning of areas spread over more than 1000 sq. km. and appeared
to be geologically and geomorphologically suitable, results in identification and delineation of
twenty-five possible prospects.
Titanium Ore
Ilmenite and Rutile bearing quartz and pegmatite veins have been found in a number of
localities within a radius of about 10 km of Gaurangdih in Purulia district. Ilmenite also occurs in
pegmatite and quartz veins near Manbazar and Jhalda area of Purulia district.
Vermiculite
A few occurrences of Vermiculite have been reported from Daktigora, Nichu Bhuenpur,
Gaurnagdih and Pabyan areas of Bankura district.
3. MINERAL-BASED INDUSTRIES IN WEST BENGAL
3.1. The mineral wealth in West Bengal has supported a number of mineral-based
industries. The most important of them are Iron and Steel and Engineering Industries. Looking at
the availability of minerals in the State, there is a large scope for setting up new mineral-based
industries. A good quantum of minerals exploited in West Bengal are being sent to other States
in new form. The State is, therefore, deprived of the value addition in minerals. The endearour,
therefore, would be to encourage the establishment of mineral-based industries in the State.
6
4. INFRASTRUCTURE IN WEST BENGAL FOR MINING ACTIVITIES
4.1. Railways
Proximity to railways is a dominant factor in industrialisation. The mineral-resources bearing
areas of West Bengal are well-connected by Railways.
4.2. Roads
West Bengal has a fairly good Road Network though there is scope for further improvement.
There are seven national highways traversing the whole State. The State Government attack highest
importance to development of infrastructure for industries, specifically the Road Network.
4.3. Power
Power is a key input in mechinised mining, processing and mineral-based industry. The
State has seen vast improvement recently both ion power generation and distribution. The present
installed capacity in the State about 5000 MW. Several projects are under execution for augmenting
power generation in the State and the additional input would be to the tune of 2500 MW. (approx).
4.4. Human Resources
Looking at the number of mines in the State, a large number of qualified personnel are
necessary. 3 Engineering Colleges in the State have degree courses in Mining Engineering. Geology
is taught in all (seven) the Universities in the State.
5. REGULATION OF MINES AND MINERALS
5.1. Although mineral wealth vests in State Governments, yet the subject of regulation of
mines and mineral development is covered by entry 54 of the Union List under Seventh Schedule of
the Constitution of India. By virtue of this, the Parliament has exclusive power to make laws with
respect to regulation of mines and mineral development.
5.2. Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) has been
enacted by Parliament and Mineral Concession Rules, 1960 have been issued by the Central
Government in exercise of powers given under Section 13 of this Act. The Central Government has
also framed the Minerals Conservation and Development Rules, 1988 for conservation and
systematic development of minerals. These rules are applicable to all minerals except coal, atomic
minerals and minor minerals. Rule making powers in respect of minor minerals have been delegated
to the States under Section 15 of the Act. In exercise of these powers, West Bengal Minor Minerals
Rule, 1973 have been framed. According to MMDR Act 1957, prior approval of the Government of
India is necessary before the grant of mineral concession for minerals specified in Schedule 1 of the
said Act. Presently, 22 minerals are included in Schedule 1. Of these 11 minerals are atomic
minerals, one mineral (coal and lignite) is a fuel mineral and remaining 10 are metallic ores and
industrial minerals.
5.3. The grant of Reconnaissance permit, Prospecting license or Mining Lease is governed
by the Mines and Minerals (Development and Regulation) Act, 1957 and Mineral Concession Rules,
1960. The State Government with the prior approval of the Government of India gives permission
for prospecting or leasing of mine.
5.4. With the opening up of Indian economy, Government of India has liberalized the grant
of licenses and lease for most of the minerals except atomic minerals and Hydrocarbon energy
minerals under the National Mineral Policy, 1993. The National Mineral Policy, 1993 has radically
alerted the earlier policy Important changes introduced are as follows:—
7
(a) Thirteen minerals viz. iron ore, manganese, chrome, sulphur, gold, diamond, copper,
lead, zinc, molybdenum, tungsten, nickle and platinum group of minerals have been
deleted from the list of minerals which had earlier been reserved for exclusive
exploitation by the public sector. These minerals are now open for exploitation by the
private sector.
(b) Foreign investment and technology will be encouraged. Ceiling on foreign equity in the
mining industry has been removed.
(c) Limestone has been deleted from the list of scheduled mineral and no approval of
Government of India is required before sanctioning lease for grade lime stone.
5.5 In order to prevent illegal mining activities in the State, the State Government is
finalizing a new Rule entitled West Bengal Minerals (Prevention of Illegal Mining, Transportation
and Storage) Rules, 2002 on the basis of a model Rules framed by the Central Government.
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TABLE – I
The reserves of important minerals available in West Bengal are (Source : IBM, as on
01.04.1990 – updated on 1997).
Minerals
Apatitle Rock Phosphate ('000
tonnes)
Barytes ('000 tonnes)
Chinaclay
Coal
Copper —
(i) Ore
(ii) Metal
Dolomite
Feldspar ('000 tonnes)
Fireclay
Ilmenite ('000 tonnes)
Lead-Zinc —
(i) Ore
(ii) Lead metal
(iii) Zinc metal
Limestone
Quartze Silica Sand
Rutile
Manganese Ore ('000 tonnes)
Tungsten —
(i) Ore
(ii) Containing WO3
(tonnes)
Vermiculite (tonnes)
Silimilite ('000 tonnes)
Mineral reserves (in million tonnes)
Proved
Probable
Possible
Total
570
9465
521
10556
—
1.02
8714
303
199.05
13573.17
—
50.04
7860
303
250.11
30147.17
—
—
12.53
180
0.55
—
0.079
0.001
186.53
680
0.86
—
—
—
93.94
—
8.19
1.878
0.079
0.001
293
860
9.60
1.878
—
—
—
6.40
0.23
—
—
1.342
0.031
0.030
12.15
0.90
—
—
1.439
0.032
0.037
16.60
0.15
172.8
100.0
2.78
0.063
0.067
35.15
1.28
172.8
100.0
—
—
0.092
56
0.400
610
0.492
666
—
—
340
—
3152
1488
3456
1488
9
WEST BENGAL MINERAL POLICY, 2002
PART –II
1. OBJECTIVES AND STRATEGIES OF West Bengal Mineral Policy, 2002.
1.1 The basic objectives of the State Mineral Policy are the following :i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
xiv)
xv)
xvi)
To explore for identification of mineral wealth in the State ;
To develop and exploit mineral resources taking into account the interests of the
State and other strategic considerations ;
To review the existing state monopolies over mineral exploitation and,
wherever required, go in for selective de-reservation;
To encourage mineral PSUs to concentrate on specific sectors to ensure better
economics ;
To carry on geological mapping of mineral resources including those in forest
overlays so that environment and mining can cohabit healthy;
To invite private capital, resources and technology, both foreign and domestic,
for better exploration and exploitation ;
To promote necessary linkages for smooth and uninterrupted development of
mineral-based industries to meet the needs of the State ;
To increase state revenues and local employment through improved exploitation
and flow of funds into the mineral sector ;
To promote Research and Development activities in the mineral sector ;
To ensure establishment of appropriate educational and training facilities for
human resource development to meet the manpower requirements of the
mineral industry ;
To minimize adverse effect of mineral development on the forest, environment
and ecology through appropriate protective measures;
To ensure conduct of mining operations with due regard to safety and health of
all concerned ;
To ensure proper vigilance and supervision of mining activities with particular
emphasis on simplification of procedures and greater generation of revenues
from mineral resources ;
To create a database on mineral resources of the State ;
To develop industry friendly facilitators in specific minerals like Coal, Granite
and Chinaclay and in natural gas like Coal Bed Methane;
To ensure greater and scientific utilisation of mineral resources by preventing
illegal mining, storage and transportation of mineral.
2. SURVEY AND EXPLORATION.
2.1. Though the Geological Survey of India and the Directorate of Mines and Minerals, West
Bengal are carrying on geological prospecting works, the figures and data are slow to come by. Both
Geological Survey of India and the Directorate of Mines and Minerals, West Bengal are using
conventional methods of geological prospecting and, hence, the slowness of the results.
Reconnaissance operations mean prospecting of minerals has been given priority under the recently
amended Mines and Minerals (Development and Regulation) Amendment Act,
1999.Reconnaissance operations mean prospecting of minerals through regional, aerial, geophysical
or geochemical surveys and geological mapping, but does not include pitting, trenching, drilling
other than boreholes or sub-surface excavation. The State Government will encourage
reconnaissance operations for prospecting of minerals in respect of which proven data are either not
available or available in a very small quantum. Such minerals are Barytes, Apatite, Gold, Quartz and
Silica Sand, Copper, Ilmenite, Lead-Zinc, Tunsten, Rutile, Silliminite, Cesium and Vermiculite. The
10
State Government will welcome private companies
operation for prospecting of minerals in the State.
to
undertake
reconnaissance
2.2. The Ministry of Petroleum & Natural Gas, Government of India has drawn up a New
Exploration Licensing Policy for exploration and exploitation of petroleum and Natural Gas. Under
NELP natural gas prospecting and exploitation have been made open to bidding by the private
entrepreneurs. Three Blocks in West Bengal have been identified for private prospecting under
NELP. Methane which is a natural gas emanating from coal seams can be extracted, processed and
treated for use as fuel both in industrial and domestic sectors. Such gas, more commonly known as
Coal Bed Methane, has huge scope for exploitation for use as an environment friendly and cost
effective fuel with coal reserves in abundance in West Bengal, exploration and exploitation of CBM
will be greatly encouraged.
2.3. Particular attention will be given to the survey and exploration of minerals in which the
State has poor but just adequate resource base. Exploration for noble metals and minerals for
electronic and other high-tech industries will receive due attention.
3. STREGEGY FOR MINERAL DEVELOPMENT AND EXPLOITATION.
3.1. Major mineral.
3.1.1. The Government of India is thinking in terms of amending the Coal Mines
(Nationalisation) Act, 1973 to allow Indian companies to mine for coal and lignite in new coal
blocks. It will also allow the companies to explore for coal. At present mining of coal by private
companies are allowed only for the captive purpose of power generation and manufacture of steel
and cement etc. Most of the existing coalmines in West Bengal are underground coalmines. In prenationalisation era, the private operations did very little to ensure scientific mining and safety in
mines. Today’s large scale subsidence in Ranigunge Coalfields Area is mostly the result of
unscientific and haphazard mining by the private operators of pre-nationalisation eta. The State
Government, therefore, does not favour throwing open underground mining to the private
companies. In respect of open cast mines, Joint Venture participation will be encouraged. Such a
step will put an end to the illegal coalmining in existing open cast collieries by the coalmafias in
Ranigunge-Andal belt. The revenue earning by the State Government from Coal royalty and cess
will also greatly increase.
3.1.2. The State Government will encourage private participation and joint venture effort in
the exploration and exploitation of Apatite (Rock Phosphate) and Tungsten and other minerals
which have greater demand in use for mineral-based industries.
3.2. MINOR MINERALS.
3.2.1. The minor minerals available in the State and ordinary earth(clay), brick earth, sand,
building stone, boulder, morrum, laterite, limestote (when used for building purpose), granite
(decorative stone) etc. Excepting lime stone, building stone and decorative stone all other minerals
are available on sufface or river bed. The deposits of earth, sand and boulders are almost unlimited,
strengthened by new formations.
3.2.2. Government of West Bengal formulated the West Bengal Minor Minerals Rules for
regulating the grant of mining lease and quarry permit in respect of minor minerals. The said Rules
was prepared under the guidelines stipulated in the Mines & Minerals (Regulation and
Development) Act, 1957 and the Mineral Concession Rules, 1960. The WBMM Rules have not
undergone major changes in recent years. Some important provisions of law on regulation and
development of minerals, including those in respect of greater revenue earning, clarity in the
processing of applications, vigilance and supervision over mining activities, have been ensured by
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the recent amendments in the Central Acts and Rules. The WBMM Rules are also being
amended to make them compatible with the Central Acts and Rules. The amendments will ensure :a) Scientific exploitation of minor minerals ;
b) Greater revenue-earnings ;
c) Greater vigilance and supervision over mining activities ;
d) Removal of procedural delays ;
e) Removal of contradictions on the points of law leading to lesser prospects of litigation
and consequent delays.
3.3.3. Building Stone and Granite (decorative stone) are the two minor minerals in respect of
which proper mining mechanisms should be ensured. Both minerals are available in sub-surface and
amenable to open cast mining. In both cases the Government of India has stipulated that there should
be duly approved Mining Plan. Though temporary quarry permits are issued by the District
Authorities, issue of such permits in respect of quarrying of stone and granite may not be allowed
any more. For exploration and exploitation of Granite the Government of India has framed a Granite
(Conservation and Development) Rules which are being adopted by the State Government.In respect
of decorative and building stones the application for grant of mining lease shall accompany the
following :a) duly approved Mining Plan ;
b) clearance of appropriate authority for use of explosives.
3.3 GENERAL.
3.3.1. As mineral are exhaustible and mostly non-renewable resources, their exploitation has
to be done keeping in view not only the present but also the long term needs. The strategy for
exploitation and development of each mineral will be reviewed periodically on the basis of available
resources. An optimal depletion rate will be worked out in respect of each mineral keeping in view
the domestic and global resource position, the international market situation and the needs for stable
and sustained economic development.
3.3.2. The best use of mineral resources will be ensured by adopting, during mining operation,
effective measures for conservation and beneficiation, recovery of associated minerals and later by
efficient processing of minerals. There will be adequate and effective legal and institutional
framework and commitment to prevent sub-optimal and unscientific mining. Some of the suggested
steps to achieve this goal are :a) greater use of scientific methods of exploitation ;
b) fixation of productivity norms of both men and machines ;
c) development of mineral processing and beneficiation systems;
d) greater recycling of metallic scrap and utilization of mineral wastes ;
e) use of better and improved mining equipments and machineries ;
f) proper manpower development ;
g) greater linkages between development of mineral resources and their utilization in the
end products ;
h) dissemination of information on technological changes ;
i) improvement or infrastructural facilities and regional development ;
j) financial support or mining activities ;
k) promotion of small scale mining or small deposits in a scientific and efficient manner
safeguarding the vital environmental and ecological imperatives. In respect of mineral
concessions for small deposits in scheduled Areas, preference shall be given to the
entrepreneurs belonging to the Scheduled Trines Communities.
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4. LINKAGES OF MINERAL DEVELOPMENT WITH MINERALS-BASED INDUSTRIES
IN THE STATE.
4.1. The important mineral-based industries that have come or have possibilities of coming
up in West Bengal are in the following sectors :Aluminium, Asbestos-cement, Alloy Steel, Calcium Carbide Caustic Soda, Cement,
Ceramics, Ferro-allowys, Fertilisers, Oil Refinery, Refractory, Steel Ingots, Sulpharic Acid,
Soda Ash, Mini Steel plants,etc.
For industrial growth in the State it is essential that exploration and exploitation of minerals
should be done, developed and regulated in a scientific manner.
4.2. Development of Mineral resources and their utilization in the end products have
distinct stages which are closely interlinked. Failure in the performance at any one stage eventually
affects both the mining and the mineral industry and the units dependent on it. The mineral
processing units should not only get an assured supply of the mineral raw material but should also
have close links with the production and marketing agencies of the mineral-based and products.
4.3. The following measures will be adopted for development of mineral-based industries in
the State :(i) To facilitate the term loan assistance from financial institutions to units engaged in
mining, leases would be allowed to be mortgaged in favour of the financial
institutions.
(ii) Priority will be given for grant of mining lease to such entrepreneurs who are
willing to install processing/beneficiation units.
(iii) Incentives provided under the West Bengal State Incentive Scheme, 2000 will be
available for mining industries also.
5. RESEARCH AND DEVELOPMENT IN MINERALS.
5.1. Research and Development in the mineral sector has to cover the entire gamut of
activities from the geological survey, exploration, mining, beneficiation, extraction of minerals to
development of materials.
5.2. Efforts would be directed to development of new technologies for conversion of existing
mineral resources to viable economic resources. Appropriate technologies will be developed to
enable indigenous industries to utilise the mineral resources. R & D efforts shall be directed to find
new and alternative use for minerals whose traditional demand is on the wane. R & D Efforts shall
also be made to improve efficiency in process, operations and also the recovery by by-products and
reduction in specification and consumption norms. Efforts will also be directed to evolve low capital
and energy saving processing systems.
5.3. With this end in view the R & D wing in the Directorate of Mines and Minerals, West
Bengal will be upgraded and strengthened. The Engineering and Technological colleges in the State
will also be associated in the endeavour.
6. MANPOWER DEVELOPMENT.
6.1. Existing facilities for basic and specialized training will be constantly reviewed and
upgraded from time to time to ensure that adequately trained manpower at all levels is available for
the development of minerals and mineral industries.
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6.2. In order to improve the competitive edge of the State mining industry, emphasis will
be laid on mechanization, computerization and automation of the existing and new mining units. The
manpower development programme will be suitably reoriented for the purpose.
7. MINERAL DEVELOPMENT AND PROTECTION OF ENVIRONMENT.
7.1. Extraction and development of minerals are closely interlinked with other natural
resources like land, water, air and forests. The areas in which minerals occur often have other
resources presenting a choice of utilization of the resources. Some such areas in the State are
ecologically fragile and some are biologically rich. Both aspects have to be properly coordinated to
facilitate and ensure a sustainable development of mineral resources in harmony with environment.
7.2. Prevention and mitigation of adverse environmental effects due to mining and
processing of minerals and repairing and revegetation of the affected forest area and land covered by
trees in accordance with the prescribed norms and established forestry practices will form integral
part of mine development strategy.
7.3. The environment management plan should adequately provide for controlling the
environmental damage, restoration of mined areas and planting of trees. As far as possible,
reclamation and afforestation will proceed concurrently with mineral exploitation.
7.5. Agricultural land is increasingly used for extraction of earch for production of brick.
Valuable agricultural land is, therefore, grossly eroded not only creating socio-economic disturbance
but also environmental hazards. In order to prevent this dangerous Practice, the following steps are
to be taken :a) conversion of agricultural land for production of brick earth may be discouraged
by involving necessary provisions of law ;
b) 30% use of fly-ash mixed with brick earth may be made compulsory for
production of brick with in a radius of 50 km of a thermal power plant ;
c) all the brick producing units will be required to compulsorily set up chimneys of
specific heights and standards.
7.6. The mineral deposits in the State also fall within the recorded agricultural land and in
private land. The grant of conversion certificate in respect of agricultural land with the consent of
the raiyat for undertaking mining operation is to be expedited. Similarly in respect of private lands,
the land acquisition process is to be expedited where the private owner does not agree to sell his land
or to give his consent for use of land for mining purpose. The issues will be taken up with the Land
and Land Reforms Department.
7.7. Balanced growth of different sectors is necessary for proper economic development.
Generally, mining is seen as hostile to environment. To strike a balance between environment and
mineral development the following steps would be taken :
i) General of environment awareness.
ii) Orientation of leaseholders for preservation of ecological balance.
iii) Participation of leaseholders in afforestation in degraded areas. Land bank for
compensatory afforestation would be set up in the districts.
iv) Appropriate conditions regarding planting and nurturing of trees, dumping of
waste at specified sites and proper stacking of top soil for later use will be
incorporated in the lease agreements in case of minor minerals as well. Efforts
would be made to convert old, disused mining sites into forests and other
appropriate forms of land use for maintaining the ecological balance
v) At the time of renewal of major mineral lcases, it will be seen whether mining has
been carried out in accordance with the approved mining plan. Similarly, at the
time of renewal of minor mineral lcases it will be seen that mine has been
developed systematically.
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vi) Studies will be sponsored on reduction and utilization of Mining Wastes by the
Government.
8. MINES SAFETY AND REHABILITATION OF AFFECTED PEOPLE.
8.1. Mining operations are hazardous in nature. Accidents happen and often result in the loss
of life or limb of persons engaged in it. Efforts must be made by the Mining operators for
development and adoption of modern mining methods which would increase that safety of the
workers and reduce the accidents. Towards this end, participation and cooperation of mine workers
will be secured. Steps will also be taken to minimize the adverse impact of mining on the health of
the workers and the surrounding population.
8.2. Mineral deposits being exhaustible, once the process of economical extraction of a mine
is complete, there is need for its closure. Where the mining activities have been spread over a few
decades, mining communities get established and closure of the mine means not only loss of jobs but
also disruption of community life. Whenever mine closure becomes necessary, it should be orderly
so that the dependent community rehabilitate themselves without undue hardship.
8.3.
Mining operations often involve acquisition of land held by individuals including
those belonging to the weaker section. While compensation is generally paid to the owner for the
acquisition of his land, efforts shall be made to ensure that those belonging to the weaker sections
who are likely to be deprived of their means of livelihood as a result of such acquisition get proper
rehabilitation.
8.4.
It is the considered view of the State Government that the mining company should
taken full responsibility of rehabilitating the people affected by the hazards of mining, like
subsidence and environment pollution, in the safer areas. The State Government will of course
extend administrative cooperation for successful executive of the rehabilitation programmes.
9.
SUPERVISION OF MINING ACTIVITIES – SIMPLIFICATION OF PROCUDURE .
9.1.
For expeditious disposal of mining lease applications the best alternative is to
delegate the powers of granting mining lease to the District Authorities in respect of the minor
minerals for which submission of detailed mining plan is not necessary. For rest of the minerals
present procedure of grant of Mining Lease is to be continued. In each district an Advisory
Committee, under the Chairmanship of the Sabhadhipati of Zilla Parishad, will be constituted to
oversee and monitor the exploration and exploitation of minerals. Other members of the Committee
may include the District Magistrate, the Additional District Magistrate (L.R.)/District Land and
Land Reforms Officer, Chief Mining Officer/Mining Officer, Superintending Geologist/Senior
Geologist, Karmadhakshya of Kshudr Shilpa Sathayee Samiti of Zilla Parishad and Karmachakshya
of Bhumi O Bhumi Sanskar Sthayee Samiti of Zilla Parishad. The Committee will monitor the
following :(a)
study of available mineral resources of the District;
(b)
prospect of other mineral resources in the District;
(c)
monitoring the existing mining lease with regard to physical performance and
payments of royalty and cess;
(d)
review the processing of Mining Lease applications;
(e)
examine the problems faced by the lessees or Quarry Permit holders;
(f)
tender suggestions within the guidelines of the existing Acts and Rules for
their better implementation;
(g)
review the prospects of establishment of mineral-base industries in the
district.
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9.2.
The process of granting Mining Lease in minor minerals will be simplified in
order to ensure their expeditious dispose. Most of the applications for Mining Leases are in respect
of extraction of sand and boulders (in North Bengal). These minerals are available on the bad of
rivers. For simplication of procedures of granting Mining Lease for extraction of sand and boulders
the following steps are envisaged :(a)
in respect of river beds no land availability report from the District Land and
Land Reforms Officer need be obtained ;
(b)
the applications which are hit by rule 35 of WBMM Rule for being a
premature application is to be summarily rejected at the level of the concerned
Mining Officer In-Charge to whom the application is submitted. The
application which is not supported by required document is also to be rejected
by the Mining officer In-Charge if the applicant fails to submit the same even
after being given adequate opportunities;
(c)
Where land availability report is necessary the application is to submit
application enclosing such availability report of the District Land and Land
Reforms Officer to the concerned Mining Estate Branches of the Directorate
of Mines and Minerals.
9.3.
In order to facilitate mineral exploration by overseas investors and to provide help to
domestic investors in putting up mining/mineral-based industries having a capital outlay up more
turn to 5 cores, State Level Facilitation Group would be set up under the chairmanship of the
Secretary, Commerce and Industries Department, which would provide single window clearance.
The Mining Special Assistaure Cell at the Directorate of Mines and Minerals will provide escort
services. Efforts will be made to achieve a proper coordination with various Central Government
agencies engaged in mineral exploration in the State to avoid duplication of efforts and to ensure
optional are at the resource.
10.
REVENUES FROM MINERAL EXPLOITATION.
10.1. The rates of royalty on major minerals are fixed and revised from time to time by the
Central Government. However, the revised rates of royalty on major minerals is not effective in
respect of West Bengal since 1987. The Government of India is not inclined to revise the rates of
royalty on major minerals for West Bengal as the State Government is charging cess on coal and
other minerals. The Government of India has also decides to revise the rates of royalty on major
minerals after every 3 years.
10.2. In terms of the latest revision of royalty in September,2000. The Government of India
has allowed charging of royalty on advalorem basis on sale price of the minerals at various
percentages. It is expected that the royalty earnings from mineral-exploitation would increase by
more than 20% in view of the latest upward revision. The State Government is conscious of the
problem and will try to solve the matter in the best interest of the State.
10.3. To augment the collection of royalty and cess from minor as also non-coal major
minerals, the local Panchayat Bodies are to be involved in regular measurement of production and
despatch of minerals in respect of each lease-hold area. Such measurements will be verified by the
respective assessing officers whenever needs arise. Royalty and cess will be collected by the
collecting authorities on the basis of such assessments. The Zilla Parishads may be allowed
incentives in the event of achieving collections over the targeted amount on a scale to be decided
upon in due course. In case of collection of cess on coal the returns submitted by the Eastern
Coalfields Limited, etc. to the Directorate of Commercial Taxes are to be verified with the returns
submitted for assessment of royalty to the Chief Mining Officer, Asansol in order to avoid any
shortage/discrepancy in the collection of dues.
10.4. There are huge pilferages and illegal mining. With greater vigilance and supervision
the revenue earnings can be enhanced by at least 50% under the present circumstances. The revenue
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earning can also be doubled by tapping mineral resources in new areas. The Directorate of Mines
and Minerals, West Bengal, with its present infrastructure, cannot ensure proper vigilance and
supervision over mining activities. There are only 4 nos. of zonal offices of Mining Estates Branch
of the Directorate with its Head Quarter at Asansol to look after the mining activities in 17 districts
of the State – 3 nos. in South Bengal (Purulia, Hooghly and Suri) and 1 No. in North Bengal
(Siliguri) While Purulia, Bankura, Burdwan, Birbhum and parts of Midnapore district are rich in
mineral resources, the rivers of Howrah, Hooghly, North 24 Parganas, Sosuth 24 Parganas, Nadia,
Murshidabad, Darjeeling, Jalpaiguri and Cooch Behar have large riverine areas having huge deposits
of sand, silt, clay and boulders. It is almost impossible to monitor the total mining activities from
only four centres. Hence, there is need to strengthen the Directorate at district level with more
manpower, particularly technical ones and equipments. The Directorate, which is instrumental to
generate Rs. 461.0 crores of revenue at present and has scope to double the said amount, have a
budget provision of Rs. 3.20 crores (plan – 0.80 crore, Non-Plan – 2.40 crores) annually which is
even less than 0.7% of the revenue it helps generating. The Directorate deserves greater degree of
financial support. Separate Mining Zonal Officers may be set up for Bankura and Midnapore
districts For the districts of North 24-Parganas, Nadia and Murshidabad there should be a new
Mining Zonal Office. Likewise, the additional Mining Zonal office may be set up for North Bengal
districts. There are at present 3 nos. of Geological Prospecting Branches of the Directorate at
Bankura, Purulia and Siliguri. Additional G. P. Branches may be set up at Midnapur and Suri also.
However, what is more needed for the geological prospecting is the purchase and use of modern
survey and exploration equipments. Adequate financial support will be extended for strengthening
and refurbishment of the Directorate.
10.5. For curbing illegal mining, the State Government will soon be enforcing the West
Bengal Prevention of Illegal Mining, Storage and Transportation of Minerals Rules, 2001. Greater
revenues are expected to be generated consequent on introduction and enforcement of the said
Rules.
11.
DERESERVATION OF THE MINING BLKOCKS/AREAS RESERVED FOR THE
STATE GOVERNMENT UNDERTAKINGS.
11.1. The new Mineral Policy of Government of India has stressed the importance of
denotifying areas which are reserved for exploitation by Public Sector Undertaking. In this State
many areas have been kept reserved for exploitation by the West Bengal Mineral Development and
Trading Corporation Limited. Most of such areas have remained unexploited over the years. Even in
areas where exploitation of minerals have been done, the physical performance has been very poor.
The State Government has lost a large amount of mineral revenues due to non-exploitation or
inadequate exploitation of minerals by the WBMDTC Limited. Payment of royalty and cess on
minerals by WBMDTC Limited has also gone into huge arrears. In the light of above and accepting
the recommendation of the Advisory Committee, constituted by the State Government vide
resolution no. 249-CI/E dated 18.8.1994 of the Commerce and Industries Department the mining
areas reserved in favour of WBMDTC Limited will immediately be denotified. Private entrepreneurs
may submit applications for grant of mining lease in these blocks. Simultaneously a restructuring of
WBMDTC Limited is also envisaged to make the organization more mobile, workman like and
efficient.
12. CREATION OF DATA – BASE ON MINERAL RESOURCES.
12.1. The exchange of data and information and geological prospecting to trace out mineral
resources in the State is of utmost importance. Besides the Directorate of Mines and Minerals, West
Bengal the following Organisations are also engaged in exploration activities in the State :a) Geological Survey of India ;
b) Oil and Natural Gas Corporation Limited ;
c) Central Mines Planning and Design Institute Limited (CMPDIL).
17
The Eastern Coalfields Limited and the WBMDTC Limited are also doing exploratory
works. The data and information on mineral resources collected by these organizations should be
properly catalogued to work as a data-bank. The Directorate of Mines and Minerals, West Bengal
will develop this data bank for which setting up of Information and Documentation Cell at the Head
Quarter of the Directorate is essential. Exploratory works will also be thrown open to the private
bodies or entrepreneurs. The private industry houses showing interest in participating in exercises
for tracing out mineral resources in the State may be offered all co-operation and assistance.
12.2. Information about technological changes leading to substitution of the mineral or the
products made out of such a mineral will be compiled and disseminated from time to time to enable
the mineral industry to adapt itself. A close linkage is required to be established between the changes
taking place in material science.
13. NEW INITIATIVES TO PROMOTE GRANITE INDUSTRY.
(i) Granite Conservation and Development Rules, 1999 will be implemented in West
Bengal.
(ii) Lease applications will be disposed off with in six months.
(iii) Self assessment of granite will be introduced and this would be the basis for issue of
transport permits. This measure is aimed at reducing the delays in grant of transport
permits.
(iv) Priority will be given to Scheduled Caste and Schedule tribe applicants while
granting granite leases.
(v) M/s West Bengal Mineral Development & Trading Corporation Ltd a State
Government undertaking will be advised to develop a granite mine in any suitable
location in the State in collaboration with other industries engaged in granite
quarrying and trade. These mines would deploy latest mining equipment and would
serve as a model for others. It can be used for training purposes also.
(vi) Waste generated from Granite quarries will be charged at a lower or equivalent to
ordinary building material.
14. EXPORT PROMOTION.
Iron ore, Granite and Semi-precious stones have the potential or export. Most of these
minerals are being exported even today, but the quantities are comparatively small. Apart from the
need for improving their quality standards acceptable to foreign markets, suitable incentives would
be necessary to increase their export.
Following measures will be taken to promote export of minerals.
(i) Fairs and exhibitions will be organized in the Sate, periodically, so that the type of
minerals and decorative stones available in the State may havwe the desired publicity.
(ii) Visits to national and international trade friars, exhibitions and seminars will be
organized both, for potential exporters and Government functionaries. Participation
of lessees and entrepreneurs in such trade fairs, exhibitions and seminars is expected
to give them an opening in the national/international markets and provide a fillip to
exports.
(iii)Priority will be given in the grant of mining leases to those who put up exportoriented units in the State.
(iv)Ore Dressing Laboratory for undertaking beneficiation studies and chemical analysis
will be initiated.
(v) Efforts will be made to promote the use of standard equipment for improving and
maintaining quality standards suiting the requirements of the foreign buyers.
(vi)Efforts will be made to develop ports specifically to facilitate export of minerals.
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15. POLICY IMPLEMENTATION.
15.1. An Empowered Committee, headed by the Commerce and Industries Secretary, will be
constituted take suitable steps for ensuring compliance of the measures envisaged under the West
Bengal Mineral Policy, 2001. Progress regarding the implementation of the Mineral Policy would
also be reviewed at the level of the Departmental Minister twice a year.
16. CONCLUSION
16.1. Mineral wealth is finite and non-renewable. It is a major resource for development. The
management of this precious resource and its optimal and economical use are matters of both
national and regional importance. The success of the State Mineral Policy will depend largely on
commitment or all concerned to fulfill its underlying principles and objectives.
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