Union minister for steel and mines Naveen Patnaik said inter-ministerial consultations on the draft `Offshore Areas Mineral (Development and Regulation) Bill' would begin shortly. ``The enactment of this legislation will go a long way in exploiting the mineral resources in offshore areas,'' the minister said, inaugurating the fifth International Mining and Machinery Exhibition on Monday.

The biggest event in mining and machinery is being organised by the Confederation of Indian Industry (CII) in association with the Union ministries of coal, steel and mines. Orissa is the partner state and UK is the partner country for the exhibition and conference. Nearly 40 per cent of the delegates are from overseas, representing 15 countries.

The draft Bill has essentially incorporated the recommendations of a mines ministry working group onregulations necessary to develop mineral resources in the maritime zones of the country. The mines ministry is also awaiting a Cabinet nod on another amendment to the Mines and Minerals (Regulation and Development) Act, that will give state governments a greater say in the allocation of mining leases and prospecting licences to investors.

Patnaik recounted the gradual lreforms in mining sector since 1993, when the new National Mineral Policy was framed to lift restrictions on private sector and FDI in mining and mineral-based industries. The prospecting area was increased to 5000 sq km from 50 sq km to allow aerial prospecting.

Patnaik said the ``reforms had borne fruit'' and that there was ``considerable new investment flowing into this sector.'' The Foreign Investment Promotion Board (FIPB) has approved Rs 3041 crore of foreign direct investment in mining and mineral-based industries, but only a trickle of that deluge is known to have flown in.

Confederation of Indian Industry chairman Rajesh V Shah,hinted in his address, that procedural delays were responsible for the slow investment in mining and mineral-based industries. ``From our side, we are trying to clear the projects within a month'' of having received the recommendations of state governments, he said. The CII chief suggested partnerships between states and the Centre and the private sector in exploiting the nation's mineral resources. The inaugural ceremony was attended by the British high commissioner, Sir David Gore-Booth, apart from ministry brass and captains of industry.