States may set up mega mining companies

The Centre is working on a plan to create a new structure of mega mining companies under the jurisdiction of states to carry out mining and supply of minerals.

The proposal is under the consideration of the Union ministry of mines, sources said.

It is expected to help metal makers and power producers surmount issues related to delays in clearances.

Such companies would focus only on mining the blocks allotted to them and the state governments would control the supply of minerals to end-users.

“The mines that will be allotted should come with embedded approvals. Hence, there won’t be any delays,” a senior official of the ministry said, seeking anonymity.

The creation of such mining firms is also expected to end the monopoly of mine owners by making the raw material more accessible to end users.

“The modalities are still being worked out. A dialogue is on currently between the mines ministry and the steel ministry. Eventually, the ministries of coal and environment would be involved in it,” the official said.