National mineral exploration Trust (NMET)

Table of Contents

Relevance for UPSC

GS 1: Mineral & Energy Resources, Distribution of Key Natural Resources

Why in news?

Ministry of Mines issues General Instructions to Notified Exploration Agencies for submission of project proposals to National Mineral Exploration Trust (NMET).

Introduction

With an objective to boost the mineral exploration activities in the country, Central Government established ‘National Mineral Exploration Trust’ (NMET) which since its inception has been funding various Notified Exploration Agencies to carry out exploration projects across the country.
The MMDR Act, 1957 was amended in March 2021 and now the amended Act mandates NMET as a nonprofit autonomous body.

What is the mandate of NMIT?

National mineral exploration Trust (NMET) is a body working to realize the mineral potential of the country in terms of mining activity and contribute commensurately to the growth of national economy.
For this purpose, a number of steps have been initiated to ensure that the national economy receives the rightful contribution from its geological wealth.
The mining industry in the country is undergoing reforms introduced through investor friendly and transformative interventions of the Government.

Status of National Mineral Exploration Trust(NMET)

The MMDR Act, 1957 was amended in March 2021 and now the amended Act mandates NMET as a nonprofit autonomous body.
The autonomy of functioning will give the NMET the necessary flexibility to achieve its desired objectives.
Ministry of Mines has taken the following steps to boost the mineral exploration in the country-
- The Mines and Mineral (Development and Regulation) Act, 1957/MMDR Act 1957 was amended in March 2021 to make provision for funding of private exploration agencies from National Mineral Exploration Trust (NMET). So far, nine agencies have been notified under the second proviso to Section 4(1) of the MMDR Act.
- Geological Survey of India has given thrust on Pan-India mapping projects like National Geochemical Mapping, National Geophysical Mapping, National Aero-Geophysical Mapping and Specialized Thematic Mapping programmes which are expected to contribute immensely to delineate new potential areas for further systematic mineral exploration.
- OGP area has been updated with incorporation of more baseline and exploration data and has been increased to 6.88 lakh sq.km for 18 minerals from a previous figure of 5.71 lakh sq.km for 10 minerals.
- Following MEMC Amendment Rules 2021, 252 Geological Memorandums have been handed over to the concerned State Governments for auctioning as composite licence.
- NMET has streamlined the process of sanction and release of funds for fast implementation of exploration projects. A Scheme of partial reimbursement of exploration expenses for Composite Licenses (CL) holders has been formulated for exploration of certain minerals. NMET provides financial assistance for strengthening of exploration infrastructure of Central Government organizations & State DGMs/DMGs.

Where NMET fund is utilized?

The NMET fund is being utilized to undertake studies for mineral development;
Regional and detailed exploration with special emphasis to strategic and critical minerals;
Aerial geophysical survey of obvious geological potential (OGP) and adjoining areas of India;
Sustainable mining with adoption of advanced scientific and technological practices and mineral extraction metallurgy.
It also facilitates exploration activities in such a manner that areas explored can be taken up for grant of mineral concessions in accordance with the provisions of the Act.