Govt looking to address ‘issues, shortcomings’ in fixation of average sale price of minerals

The Mines Ministry is addressing the shortcomings that come when doing fixation of average sale price (ASP) of minerals. 

Till the New Mineral Index (NMI) is formulated for all minerals, the government has sought suggestions from various industry stakeholders. 

The Confederation of Indian Industry (CII) informed that the development of the proposed uniform NMI for all minerals in line in order to tackle the ambiguities in the current ASP. This will resolve the irregularities of high ASP of limestone and bauxite (metal). 

FIMI is urging the Centre to continue with the current system of ASP. The current system is found to be the most effective and transparent, it was published by Indian Bureau of Mines (IBM). In April, the Mines Ministry set up a committee that examined double calculation of royalty due to its inclusion in calculation of ASP of minerals. With this, an NMI valuation of minerals and value for auction of mineral concessions will be determined. 

The committee has decided to take suggestions from government authorities and industry associates, for the fixation of ASP at the moment, until NMI is formulated. The panel, under chairmanship of former coal secretary S K Srivastava, has members from the Central government.  

NMI is being developed on the lines of the National Coal Index (NCI) FIMI said. Majority of the coal consumed in the country is for power, which is a regulated sector, all non-coal minerals are consumed for non-regulated sectors such as steel, aluminium, cement, etc. 

Looking at the visible difference between Coal and other minerals, NMI and NCI should fundamentally have a different methodology, FIMI had stated.