The Union Cabinet on Thursday gave approval in principle to the long-awaited National Mineral Policy. The new policy is likely to attract foreign direct investment to the tune of $250 million per annum. It is expected open up country's huge untapped mineral deposits besides helping mineral-rich states earn more revenue as it talks about progressing towards an ad-valorem duty structure. An amendment Bill would be introduced during the Budget Session to bring about suitable amendments in the Mines and Minerals (Development and Regulation) Act, 1957. The new policy comprises the recommendations made by state governments, the high-level committee and the group of ministers. The policy talks about preference to Companies, undertaking initial exploratory process for a mining block to be awarded mining lease. The Cabinet also gave its approval for setting up an independent dispute resolution mechanism called Mining Administrative Appellate Tribunal. This will be fully made operational within six months. The tribunal is aimed at expediting the litigation process and help extract raw material for the industry's growth. Delays in securing mining licences have proved to be a major bottleneck in bringing in foreign direct investment into the sector. Courtroom battles to acquire mining leases, including the iron ore reserve Chiria mines, have been delaying brown and greenfield projects of various Companies including Arcelor-Mittal, Steel Authority of India Ltd, Posco, and JSW Steel Ltd. Currently the states get a maximum of Rs 27 for per tonne of raw material extracted. "Most of the objections of the states have been incorporated in the policy,' minister of state for mines T Subbarami Reddy said. Recently, the chief ministers of five mineral-rich states