The total value of mineral production, excluding atomic minerals, during 1999-2000 is estimated to be Rs 41,052 crore, an increase of one per cent over the previous year, according to the mines and mineral ministry, with fuel minerals accounting for Rs 33,678 crore, metallic minerals Rs 2,976 crore and non-metallic minerals Rs 3,393 crore.

A number of legislative changes were made in the mines and minerals (regulation and development) Act to give effect to the national mineral policy, 1993, including removal of restriction on foreign equity holding and deletion of 15 minerals from the first schedule of the MMRD Act.

Following the announcement of the national mineral policy, 1993, investments had flowed in from many multinationals for the exploration of base metals, noble metals and other scarce minerals. With the national mineral policy and amendment of the mines and minerals (regulation and development) Act in 1994, 13 minerals which were earlier reserved for exploration and exploitation by the public sector were on list for the private sector as well, minister of state for coal Rita Verma said.

These minerals were iron ore, manganese, chrome ore, sulphur, gold, diamond, platinum group, copper, lead, zinc, molybdenum, tungsten ore and nickel. As far as coal is concerned, mining by private sector companies was permitted only for captive consumption in iron and steel production, power generation and cement production under the existing provisions of the coal mines (nationalisation) Act, 1973, Verma said.

The Act also allows lignite mining by the private sector companies for the power and cement plants.

Faced with a demand-supply mismatch for coal in the country, as reported by the committee on integrated coal policy, the ministry had proposed introduction of a Bill for amendments to the Act, to allow Indian companies to engage in non-captive coal and lignite mining and exploration.

However, the 12th Lok Sabha was dissolved before the Bill could be introduced in Parliament.

Meanwhile, as many as 48 projects have been withdrawn from coal companies under Coal India Ltd after incurring an expenditure of Rs 107.86 crore on these projects, for various reasons including adverse geo-mining conditions, safety aspect and delay in getting forestry clearance.

Government had also issued guidelines to shelve such projects where expenditure was less than 20 per cent of the anticipated cost even after 60 per cent of the gestation period, Verma had informed the last session of Parliament.

She said to minimise expenditure on such projects, advance action was being taken up for acquisition of both forest and non-forest land, sorting out rehabilitation issues and obtaining environmental clearance before approval of the project report.