The Rio Tinto Diamond project in India is in Trouble due to environmental Issues.

The Diamond mining project of Rio Tinto in the Madhya Pradesh state of India is at stake and delayed. The project is situated in the Madhya Pradesh state of India. It is falling in the forest and forest clearance has taken such a long time ( pending since more than 5 years. ) the diamond project is one of the biggest project and as news is available the project cost about INR 2000 Cr and is a mojor industrial project.
Now look at the sincerity of the government officials that they are not able to reach to the conclusion about the effect on forest from the proposed project. The time has come that a time bound approach is required and firm decision should come from the competent authorities- Yes or No.
The project will require cutting of trees but solution should come.

Any delay send signal to the investors that the industrial scenario in India is not investor friendly and government machinery of insensitive. It can also be inferred that they are not competent.
Hope this project would be given green signal and boost the local economy.
The new mining rules of government of India has created hurdle in the development of the mining industry.

The Mining Sector in India
The Mining Sector in India is going through very critical stage where the development of minerals in the form of grant of prospecting license,mining lease is stopped due to the implementation of  E_Auction of mineral assets. In this process state governments Identify potential mineral bearing areas of Limestone,Iron Ore,Bauxite for captive use and put them for auction. The value of mineral is assigned on the basis of total mineral resources and value of mineral. The value of mineral is decided on the basis of  sale price of particular mineral as indicated by Indian Bureau of Mines.The state government make certain price as price to start the bid this is known as "Reserve Price". The bidders have to bid over it to get the mineral block for grant of mining lease.
Any body can not participate in the bid. He should have sound financial strength and should have captive plant or have board resolution to set up captive plant in the stipulated time. On becoming Preferred Bidder ( who have submitted highest offer and eligible), the preferred bidder, if failed to fulfil the commitments of Tender Document then the Performance Security would be forfeited and it will become disqualified.
The process is  complected and impose heavy financial burden to the mining lease holder in such a way that likely hood of  not meeting the stipulated milestones is high. This has resulted in the failure of bids called by various state governments. The bidders are not coming forward. The concept in general, look good that transparency is maintained and government also get good revenue for the purpose of using it in developmental activities. Since the demand is not increasing, investment is also not coming in this sector.
The government will soon be thinking of doing some amendments in the E-Auction process of minerals in India to attract investment in the mineral sector.
Date 1.7.2016