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The Ministry of Mines has launched a scheme to support mineral exploration by reimbursing a portion of exploration expenses to licence holders. This initiative aims to reduce exploration costs and encourage private sector participation.
Key Details
- Reimbursement Conditions
- Licence holders receive a 50% reimbursement on exploration expenses for critical minerals, capped at Rs 20 crore.
- Maximum cap can increase to Rs 24 crore if a G2 block is auctioned within three years.
- Repayment Terms
- Amount received must be repaid within ten years, starting from mineral production or receiving auction premiums.
- Lump sum payments require full repayment within one month.
- Funding Source
- Funding is sourced from the Rs 5,000 crore National Mineral Exploration Trust (NMET) fund.
Implementation and Benefits
- Policy Context: Aligned with the National Mineral Exploration Policy (NMEP) of 2016 to leverage private sector expertise and resources.
- Objectives: Mitigate exploration risks and attract domestic and international companies.
Operational Guidelines
- Eligibility: Open to all licence holders, including non-notified private exploration agencies.
- Stages of Reimbursement: Divided into six stages with specific reimbursement limits per stage.
Specific Reimbursement Limits per Stage
- Geological mapping and sampling: Up to Rs 1.50 crore.
- Geophysical investigations: Up to Rs 3 crore.
- Exploratory drilling: Up to Rs 10 crore.
- Chemical and petrological analysis: Up to Rs 2.50 crore.
- Mineral beneficiation: Up to Rs 1.50 crore.
- Research collaborations and consultancy services: Up to Rs 1.50 crore.
Logistics Expenses
- Setting up camp offices and personnel hiring: Up to Rs 1.50 crore annually, capped at Rs 30 lakh per year.
Multiple Choice Questions (MCQs) with Answers:
- What percentage of exploration expenses does the scheme reimburse to licence holders?
- A) 25%
- B) 50%
- C) 75%
- D) 100%
- Answer: B) 50%
- Under the scheme, what is the maximum cap on reimbursement for exploration expenses?
- A) Rs 10 crore
- B) Rs 15 crore
- C) Rs 20 crore
- D) Rs 25 crore
- Answer: C) Rs 20 crore
- From which fund is the funding for this scheme sourced?
- A) National Exploration Fund
- B) Mineral Development Fund
- C) National Mineral Exploration Trust (NMET) fund
- D) Exploration Incentive Fund
- Answer: C) National Mineral Exploration Trust (NMET) fund