The government introduced a new scheme to provide partial reimbursements to exploration licence holders for their expenses.
About the Scheme to Provide Partial Reimbursements to Exploration Licence Holders:
- The Scheme for Partial Reimbursements to Exploration Licence Holders is a vital initiative funded by the National Mineral Exploration Trust (NMET), under the framework of the Mines and Minerals (Development and Regulation) Act, 1957.
- Introduced during the fourth tranche of the critical minerals auction, the scheme aims to enhance domestic supplies of essential minerals like lithium and graphite and invigorate the mining sector’s contribution to economic growth.
Key Features:
- Financial Support: The scheme offers significant financial relief by reimbursing exploration expenses to reduce the economic burdens on Exploration Licence (EL) holders.
- Critical Mineral Focus: With 21 blocks across various states targeted, the initiative aims to boost the exploration and subsequent production of crucial minerals, supporting technological and industrial advancements.
- Legislative Support: It operates under the recent 2023 amendment to the MMDR Act, ensuring robust legal backing and a streamlined process for participants.
Objective:
- Enhancing Exploration: The main goal is to increase participation in exploration activities, thereby boosting discovery rates of essential minerals critical for modern industries.
Who Can Apply?
- The scheme is applicable exclusively to holders of an EL granted under section 10BA of the MMDR Act, as per the latest amendments.
Benefits:
- Reimbursement Cap: Eligible expenses can receive reimbursements up to ₹20 crore, significantly offsetting the financial risks associated with mineral exploration.
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