In a decision that is likely to broaden the scope for private participation in mining, the Mineral Advisory Council has asked state governments to review the area reserved for PSUs and de-notify surplus area for possible exploitation by the private sector. The recommendations of the council influence subsequent mining regulations.

The council, in a meeting on Wednesday, also decided to lay down guidelines for fixing the time frame within which state governments should clear applications for granting mineral concessions. States have been asked to give attention on areas under mining leases with PSUs which were in excess of 50 hectares and review them on an urgent basis.

To take prompt action on such denotifications, members of the council decided to hold state specific meetings from November this year. The mining industry has for long been pressing the Centre to take a decision on these two issues.

On the issue of land reservation, the industry had pointed out that the PSUs concerned were either no longer interested in the sites or were not in a financial position to exploit the reserved area. It also said that there were a number of court judgments where it had been stated that states could not keep areas reserved for public sector exploitation indefinitely.

For speedy grant of mineral concessions, the Federation of Indian Mining Industry (FIMI) had suggested that the Centre should frame norms for clearnace of applications by state within a time-frame. The FIMI had said that states should also be required to specify reasons in case they failed to clear applications within the stipulated time-frame. the council unanimously recommended important amendments to the Mineral Concession Rules, 1960 and Mineral Conservation and Development Rules, 1988, in a bid to further streamline the procedures and facilitate the state governments to exercise powers as per the delegated provisions of the Mines and Minerals (Development and Regulations) Act, 1957.