Restructuring of National Mineral Exploration Trust (NMET) as Autonomous Body

Context

Union Minister of Coal, Mines and Parliamentary Affairs urged the officials of the Ministry of Mines to restructure   the National Mineral Exploration Trust (NMET) as an autonomous body.

About the National Mineral Exploration Trust (NMET)

• The National Mineral Exploration Trust (NMET) was in 2015.
• The trust was formed under the Mines and Minerals (Development and Regulation) Act, 1957.
• The body is working for realization of mineral potential of the country in terms of mining activity.
• NMET has a two-tier structure.
  • The apex body which is the Governing Body is chaired by the Minister of Mines. It holds the overall control of the Trust.
  • The Executive Committee which is chaired by the Secretary, Ministry of Mines, administers and manages its activities.
• To implement its activities an NMET Fund has been established.

• The holders of the Mining Lease and Prospecting Licence-cum-Mining Lease make payments which are equivalent to 2% of royalty, for minerals under the second schedule of the Act.
• The Trust supports the regional and detailed mineral exploration in the country.

Need for the autonomy

• There is a need to focus on the exploration of gold and rare earth along with other segments of India’s mineral exploration efforts. 
• To streamline the system of extending financial assistance to statesfor enhanced exploration.
• It will create an atmosphere of competition among states to step up exploration.
• This will encourage mining exploration to be more frequent and result-oriented.