National Mineral Index to embrace the strong suits of the National Coal Index capturing subtleties from all price sources such as captive and non-captive mines etc, as well as reflect the true & useful value of the minerals and will support the Indian mining sector.

It will help in settling challenges faced by miners and states in the auction of limestone & bauxite (Metal-Grade) blocks, resolve concerns of Royalty on Royalty where prices considered are independent of Royalty, DMF, NMET, and other taxes. It shall also provide a benchmark solution to current ambiguities in the ASP (Average Sales Price) system and prevent unlawful mining. Royalty, and other taxes can also be streamlined with introduction of this Index.

 Recent reform in the coal sector can help the country spare around ₹80,000 crores per year on account of coal import by augmenting production in the country. Moreover, the auctions are likely to generate a healthy revenue stream and create numerous employment opportunities. A competitive domestic aluminium segment with production capacity of 4.1 million tons will save yearly forex outgo of around ₹40,000 crores. In addition, it will attract fresh investment of ₹1.8 Lakh crores ($ 25 Billion) into the growing aluminium sector where demand is expected to double in next 5 years. With bountiful reserves of bauxite & coal, India has the potential to be self-sufficient, competitive and be the global alternative to China. Toward this path, decision to permit joint auction of bauxite & coal can uplift the aluminium sector.

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