Mumbai (PTI): The Centre is likely to announce the new mining policy in the next two-three months, a move that is expected to pave the way for large-scale investment and job creation in the key sector.

"The new mining policy can be expected to be announced by April," Union Minister of State for Mines Subbarami Reddy told reporters on the sidelines of a conference here on Friday.

The policy announcement was taking time because the views of 28 states had to be taken into account, he said. "I am hopeful that it will be announced in 2-3 months' time."

After the policy comes into effect, he said massive investments were likely to flow into the sector.

"There will be investments to the tune of Rs 5,00,000 crore and employment generation of around 10 lakh over the next six years," the Minister said.

Asked whether all states had agreed to the new policy, Reddy said they have not opposed its provisions but had sought clarification on some issues.

Chief Ministers of five mineral-rich states - Orissa, Madhya Pradesh, Andhra Pradesh, Chhattisgarh and Jharkhand - had met the Prime Minister to discuss some issues and they were now satisfied, he said.

On the royalty issue, the Minister said after the policy announcement, states would get more royalty which would be decided on the basis of the selling price as against the present tonnage basis.