After the liberalization in 1991, a separate National Mineral Policy (NMP) was promulgated in 1993 which set out the role of the private sector in exploration and mining and the MMDR Act was amended several times to provide for a reasonable concession regime to attract the private sector investment including FDI, into exploration and mining in accordance with NMP 1993.

The National Mineral Policy, 1993 aimed at encouraging the flow of private investment and introduction of state-of-the-art technology in exploration and mining.

In the Mid-Term Appraisal of the Tenth Five-Year Plan, it was observed that the main factors responsible for this were procedural delays in the processing of applications for mineral concessions and the absence of adequate infrastructure in the mining areas.

To go into the whole gamut of issues relating to the development of the mineral sector and suggest measures for improving the investment climate the Mid-Term Appraisal had proposed the establishment of a High Level Committee.

[8] The Hoda Committee made important recommendations on the need for a Sustainable Development Framework (SDF), as follows: "The Ministry of Mines and MOEF should jointly set up a working group to prepare a SDF specially tailored to the context of India’s mining environment, taking fully into account the work done and being done in ICMM and the IUCN.

The Indian SDF comprising of principles, reporting initiatives, and good practice guidelines unique to the three sectors in Indian mining, i.e. SME, captive, and large stand alone, can then be made applicable to mining operations in India and a separate structure set up to ensure adherence to such framework, drawing from both IBM and the field formations of MOEF.

The Samatha ruling requiring mining companies to spend a set percentage of their profits on model programmes for meeting local needs through a pre-determined commitment, is one option for the country as a whole.

The working group mentioned in paragraph 3.11 may take this into consideration when preparing the Indian SDF and determine the percentage that mining companies could be advised to set aside."

It is necessary to take a comprehensive view to facilitate the choice or order of land use keeping in view the needs of development as well as the needs of protecting the forests, environment and ecology... All mining shall be undertaken within the parameters of a comprehensive Sustainable Development Framework... Mining operations shall not ordinarily be taken up in identified ecologically fragile areas and biologically rich areas.

Para 7.11 states that "Appropriate compensation will form an important aspect of the Sustainable Development Framework mentioned in para 2.3 and 7.10…" Para 7.12 states that: "Once the process of economical extraction of a mine is complete there is need for scientific mine closure which will not only restore ecology and regenerate biomass but also take into account the socio-economic aspects of such closure..." And not least, para 3.2 of the Policy states that "The Central Govt in consultation with the State Govts shall formulate the legal measures for giving effect to the NMP 2008..The MMDR Act, MCR and MCDR will be amended in line with the policy…" In line with the Hoda Committee recommendations, the Ministry of Mines commissioned ERM which prepared a Sustainable Development Framework Report in November 2011.