The Ministry of Mines on June 24, 2024, issued the Scheme for Partial Reimbursement of Exploration Expenses for Holders of Exploration Licence.
The following has been stated namely: -
• It aims to partially reimburse exploration expenses for exploration licence holders granted through auction.
• It states that EL holders granted under section 10BA of the MMDR Act shall be eligible to apply under the present scheme.
• It states that it shall allow optional reimbursement of exploration expenses to EL holders granted EL through auction, provided a proposal shall be submitted within 6 months of the EL grant, and acceptance/rejection of proposals or disputes shall not affect EL holders' obligations under state-prescribed terms
• It states that EL holders shall repay NMET within 10 years of mineral production commencement or promptly upon lumpsum auction premium receipt.
• It states that EL holders applying under the scheme shall submit a project proposal to NMET including general information (Annexure-1), a detailed proposal with estimated expenditure (Annexure-2), an annual work plan (Annexure-3), and a copy of EL.
• It states that the exploration expenses incurred by EL holders towards geological mapping and sampling shall be reimbursed up to 50% of direct costs as per the SoC of NMET with a maximum ceiling of Rs. 1.50 Crore.
• It states that the exploration expenses incurred by EL holders towards geophysical investigation shall be reimbursed up to 50% of direct costs as per the SoC of NMET with a maximum ceiling of Rs. 3.00 Crore.
• It states that the exploration expenses incurred by EL holders towards exploratory drilling shall be reimbursed up to 50% of direct costs as per the SoC of NMET with a maximum ceiling of Rs. 10.00 Crore.
• It states that the exploration expenses incurred by EL holders towards chemical and petrological analysis/ mineral beneficiation shall be reimbursed up to 50% of direct costs as per the SoC of NMET with a maximum ceiling of Rs. 2.50 Crore.
• It states that the exploration expenses incurred by the EL holder towards Research collaboration/consultancy/advisory and not covered by other activities in the proposal shall be reimbursed up to 50% of direct costs with a maximum ceiling of Rs. 1.50 Crore.
• It states that the exploration expenses incurred by the EL holder towards logistics including setting up the camp office site, transportation arrangement, hiring of personnel, consumables, etc. and not covered by other activities in the proposal shall be reimbursed up to 50% of direct costs with a maximum ceiling of Rs. 1.50 Crore, subject to the limit of Rs. 30 Lakhs per year.
Kindly refer to the attached document for Annexures 1, 2 and 3.
