New Delhi The new mining Bill cleared by a group of ministers last week envisaging direct benefit to people from the minerals underneath the land they own, also has a provision for setting up a clutch of ultra mega mining plants (UMMPs) in the country. As per the proposal, state governments will identify locations for large mines with respect to specific minerals such as iron ore, bauxite, chrome ore, copper, diamond and manganese. They will set up special purpose vehicles that will acquire land and obtain necessary clearances for the mine whose size would be above a specified threshold. The whole facility would then be put up for bidding. The successful bidder would be the one willing to make the maximum upfront payment and promise royalty higher than others. According to official sources, the idea is to encourage global mining giants like Rio Tinto, BHP Billiton and Vale to invest in India by removing the hassles of land acquisition and sundry clearances including those related to environment. Firms such as Posco, ArcelorMittal, SAIL, Tata Steel, Hindalco, Vedanta, Essar, JSW and JSPL which are setting up large metal plants in the country would also benefit from the ultra mega mines as they would be more compatible for them to achieve economies of scale. These companies could themselves bid for UMMPs. At present, these companies face serious problems in securing captive mineral resources. Often the size of mine allocated is not commensurate with the scale of the downstream project. The mining sector has attracted FDI below potential, thanks largely to policy uncertainties, delays in obtaining clearances and the bar on transferability of licences. The Mines and Mineral (Development and Regulation) Bill, which would go to the Cabinet soon, proposes to correct these policies.