The Centre has expressed disagreement with Rajasthan government's mineral policy that reserves mineral-bearing areas in favour of State undertaking Rajasthan State Mines and Minerals (RSMML).

“(The) State government policy to reserve mineral-bearing areas in favour of RSMML cannot be agreed to by the Central government... The policy for reservation... did not confirm to the provisions of the MMDR Act, 1957,” the Mines Ministry has said in a letter to the State government.

The development comes in the wake of the Rajasthan government taking a policy decision to reserve the Rock Phosphate deposits for exclusive use by Rajasthan State Mines and Minerals (RSMML).

Fertiliser minerals are in short supply in the country, which was incurring a high import bill on this account, the Ministry said in its letter.

“While the country had limited resources of fertiliser minerals, which needed beneficiation due to its low-grade nature, it was necessary to ensure that mineral policies encouraged and incentivised utilisation of these important resources for the country rather than impose restrictions on the resources,” it added.

Earlier, the Fertiliser Ministry had pointed out that the policy restriction of the State government to reserve areas for exclusive mining of fertiliser by RSSML was seriously impacting the growth plan of FAGMIL (FCI Aravali Gypsum & Minerals India Ltd) and other fertiliser industries keen to use the resources identified in Rajasthan.

The Mines Ministry also asked the Rajasthan government to reconsider its decision to restrict grant of mineral concessions in tribal areas, especially to such persons who have applied for progression to next stage of concession after completing exploration under a licence.

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