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National Mineral Policy, 2019

Topics Covered:

  1. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.


National Mineral Policy, 2019


What to study?

For Prelims and Mains: Key features and significance of the policy.


Context: National Mineral Policy, 2019 approved by Cabinet.

Focus on transparency, better regulations & enforcement, balanced growth & sustainability, Grant of Industry status to Mining activity.



  • The New National Mineral Policy will ensure more effective regulation.
  • It will lead to sustainable mining sector development in future while addressing the issues of project affected persons especially those residing in tribal areas



The aim of National Mineral Policy 2019 is to have a more effective, meaningful and implementable policy that brings in further transparency, better regulation and enforcement, balanced social and economic growth as well as sustainable mining practices.


The National Mineral Policy 2019 includes provisions which will give boost to mining sector. Some of the provisions are:

  1. Introduction of Right of First Refusal for RP/PL holders.
  2. Encouraging the private sector to take up exploration.
  3. Encouragement of merger and acquisition of mining entities.
  4. Creation of dedicated mineral corridors to boost private sector mining areas.
  5. The 2019 Policy proposes to grant status of industry to mining activity to boost financing of mining for private sector and for acquisitions of mineral assets in other countries by private sector.
  6. It also mentions that Long term import export policy for mineral will help private sector in better planning and stability in business.
  7. The Policy also mentions rationalize reserved areas given to PSUs which have not been used and to put these areas to auction, which will give more opportunity to private sector for participation.
  8. The Policy also mentions to make efforts to harmonize taxes, levies & royalty with world benchmarks to help private sector.
  9. The Policy also introduces the concept of Inter-Generational Equity that deals with the well-being not only of the present generation but also of the generations to come and also proposes to constitute an inter-ministerial body to institutionalize the mechanism for ensuring sustainable development in mining.



National Mineral Policy 2019 replaces the extant National Mineral Policy 2008 (“NMP 2008”). The impetus to review NMP 2008 came about by way of a direction from the Supreme Court vide its judgment in Common Cause v/s Union of India & Others.


Mains Question: In the light of pressing issues being faced by mining industry, examine the features of National Mineral Policy 2019.