National Mineral Exploration Trust (NMET)

Why in news?

• Ministry of Mines issues General Instructions to Notified Exploration Agencies for submission of project proposals to National Mineral Exploration Trust (NMET).

About National Mineral Exploration Trust (NMET):

• The Mines and Mineral (Development and Regulation) Act, 1957 as amended in 2015, has introduced transparent & competitive auction process for grant of mineral concessions.
• It also provided for establishment of National Mineral Exploration Trust (NMET) to give impetus to the mineral exploration activities.
• The composition and functions of the Trust is prescribed by the Central Government.
• Now, as per the recent amendment in the MMDR Act in 2021 >> NMET has to be established as a “non-profit Autonomous Body”.
• Since its inception NMET has been funding various Notified Exploration Agencies to carry out exploration projects across the country.

Where do NMET get fund?

• NMET Fund receives money from holders of mining lease or a prospecting license –cum-mining lease, an equivalent amount equivalent to two percent of royalty paid in terms of the Second Schedule of MMDR Act.

Objective of the trust

• Taking up regional and detailed exploration, for coal and non-coal minerals, by giving priority to strategic and critical minerals
• Facilitate geophysical, ground and aerial survey and geochemical survey of Obvious Geological Potential areas and rest of India
• Organizing capacity building programmes to raise technical capability of personnel engaged in exploration
• Using Trust Fund for purposes necessary or expedient in the interest of conservation, development and exploitation of mineral resources of India

PRACTICE QUESTION:

Consider the following statements regarding ‘National Mineral Exploration Trust (NMET)’:

1. It has been established under Mines and Minerals (Development & Regulation) Amendment Act, 2015

2. The composition and functions of the Trust is prescribed by the Central Government.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer