KOLKATA (miningweekly.com) - India’s national minerals policy and related legislative environment have not lived up to expectations and problems faced by the industry have prevented the inflow of foreign direct investment into the sector, Junior Minister for Mines, Steel and Labour Vishnu Deo Sai said.

Addressing the India Mining Summit organised by the Associated Chamber of Commerce and Industry, he said on Sunday, that the sector was facing large-scale allegations of illegal mining and theft of royalty resulting in depressed investor sentiment.

Sai said the new government would amend the Mines and Minerals (Regulation and Development) Act in Parliament to address concerns over environments affected by mining operations across the country.

“The changes to the Act would aim to place the industry on a sure and long-term footing that would include mines, railways and port connectivity and other logistics,” he said.

“The emphasis would be on new technology, which, owing to the high costs involved, would necessitate forming joint ventures with foreign companies,” Sai added.

The Mines and Minerals (Regulation and Development) Bill, seeking to amend the country’s antiquated mining legislation, has been hanging fire since 2011. The Bill lapsed following the end of Parliament’s last tenure and the present government would have to introduce the Bill with amendments before the new Parliament afresh.

On the technological front, Mines Ministry Secretary Anup K Pujari said that technological changes and upgrades that reduced environmental impact were slow to be adopted, and the sector was overregulated, which prevented foreign investment in the Indian mining sector, despite its huge potential.

Also addressing the summit was Sesa Sterlite Global CEO Tom Albanese who said, “a robust, well administrated and competitive fee- and performance-based licensing system for prospecting must include an open and transparent, live, nationwide tenure tracking system”.