Federation of Indian Mineral Industries (FIMI) wants the process of forest clearance simplified and improved upon to ensure its completion within the time-frame as stated in the Forest (Conservation) Act and Rules. FIMI has asked Cabinet Committee on Investment to prevail upon the Ministry of Environment and Forests (MoEF) to simplify and strengthen the process of forest clearance in consultation with the industry representatives. According to FIMI, most of the delay is taking place at the state level and there is urgent need to modify the process.
FIMI doesn’t understand the need for obtaining forest clearance at the time of renewal of mining leases, even if the lease holds a subsisting FC and wants the provision to be changed to exempt miners from obtaining FC at the time of renewal. The Federation also wants mine to continue operating based on a deemed renewal clause if the renewal application has been filed in time.
FIMI feels very complex regulatory requirements are discouraging a number of potential FDI proposals from materializing. According to the Federation complex rules often result in years and sometimes decades of delay in getting clearances.
According to FIMI regulatory hurdles has impacted the performance of mining sector during the last two years and has registered a negative growth. This has also affected other sectors dependent on mining like power sector too.