Mining Sector in India
Mining Sector in India
Mining Sector in India
drishtiias.com/printpdf/mining-sector-in-india
Why in News?
India has recorded 377 mine deaths in last 3 years [as per data tabled in Lok the
Sabha].
India plans to deep dive for extracting seabed minerals.
Background
The total geographical area of India is around 328 million hectares out of which
mining lease (other than fuel, atomic and minor minerals) constitutes around 0.14%,
barely 20% of it is mined.
The Indian subsoils are rich in onshore and offshore crude oil and gas, coal, iron ore,
copper, bauxite, etc.
India has large reserves of iron ore, bauxite, chromium, manganese ore, baryte, rare
earth and mineral salts. India produces as many as 95 minerals, which includes 4 fuel,
10 metallic, 23 non-metallic, 3 atomic and 55 minor minerals (including building and
other materials). In 2015-16, there were more than 2,101 reported mines excluding
the atomic and minor minerals, natural gas and petroleum (crude).
1/6
The mining sector’s contribution to the GDP is 2.3-2.5 % at present. Mineral
production in India grew at a compound annual growth rate (CAGR) of 5.72%
between 2013-14 and 2017-18.
It can cut down the import costs as the country is the 3 rd largest steel producer, with a
production of 101.4 million tonnes of crude steel in 2017.
India is the largest producer of sheet mica in the world and has the 7 th largest bauxite
reserves at around 2,908.85 million tonnes in FY17.
It is a labour-intensive sector and provides employment for both unskilled labour and
skilled labour. Being a part of the primary sector, it largely provides unskilled jobs.
The Development of the mining-based industry also gives a boost to the associated
industries and leads to the overall development of the region.
2/6
The Legislative Framework of Mining Sector in India
The entry at serial No. 23 of List II (State List) to the Constitution of India mandates
the state government to own the minerals located within their boundaries,
The entry at serial No. 54 of List I (Central List) mandates the central government to
own the minerals within the exclusive economic zone of India (EEZ). In pursuance to
this Mines & Minerals (Development and Regulation) (MMDR) Act of 1957 was framed.
International Seabed Authority (ISA) regulates mineral exploration and extraction.
It is guided by the UN treaty and India being a party to the treaty has received an
exclusive right to explore polymetallic nodules over 75000 sq. km in Central Indian
Ocean Basin.
The MMDR Amendment Act of 2015 introduces Mineral Concessions Grant
through auctions to bring transparency and remove discretion; The District Mineral
Foundation (DMF) to address the longtime grievance of the people affected by
mining; and the National Mineral Exploration Trust (NMET) for incentivising
regional and detailed exploration to fill the gaps in exploration in the country, and
stringent measures to check illegal mining.
3/6
It also mentions long term import-export policy for mineral, which will help the
private sector in planning and bring stability in business.
The policy also makes efforts to harmonise taxes, levies, and royalty with the world
benchmarks to help the private sector.
Provisions for e-governance, IT-enabled systems, awareness and information
campaigns have been incorporated for regulations.
The utilisation of the District Mineral Fund for the equitable development of project
affected persons and areas.
It also introduces the concept of intergenerational equity that deals with the well-
being not only of the present generation and also of the generations to come.
It also proposes to constitute an inter-ministerial body to institutionalise the
mechanism for ensuring sustainable development in mining.
4/6
Environmental/Health issues
Environmental pollution has been caused by the Makrana marble mines in
Rajasthan, the Granite mines of Karnataka have left a large hole on earth,
Damodar river has been severely polluted by coal mining.
Loss of biodiversity and local heritage due to mining activities.
The prevalence of mining in an area causes various diseases like fibrosis,
Pneumoconiosis, and silicosis in workers as well as locals.
Water Pollution – water from streams and rivers in mining areas have become
acidic and unfit for drinking. Eg: Meghalaya’s Kopili river, Damodar river etc.
Contaminated air with high particulate matters is also a major problem in mining
rich regions.
Administrative issues
Arbitrary allocation of coal mines leads to the long litigation and eventually
cancellation of allocations and charges of corruption in block allocations.
Delay in environmental clearances due to bureaucratic hindrances.
Judicial interventions lead to long delay and losses for investors. For ex: SC
imposed a heavy penalty on illegal mining without green clearances in Andhra
Pradesh, Telangana, Karnataka, and Odisha in 2017. Banning of Vedanta group
in Niyamgiri Hills of Odisha and shut down of 88 illegal mining leases in Goa in
2018.
Government’s initiatives
Star rating of mining leases to establish a sustainable development framework
for the Indian mining sector.
An MoU was signed between the Indian Bureau of Mines (IBM) and the National
Remote Sensing Centre (NRSC), ISRO in January 2016 to undertake a pilot project
on “monitoring of mining activities using satellite imagery” to deter illegal mining.
The Mining Surveillance System (MSS) is launched to check illegal mining
through automatic remote sensing detection technology.
District Mineral Foundation Fund (DMF) was established for the welfare of
mining-affected people and areas under Pradhan Mantri Khanij Kshetra
Kalyan Yojana [PMKKKY].
The National Mineral Exploration Policy has been released to attract private
exploration agencies.
100% FDI permitted via automatic route for mining and exploration of metal and
non-metal ores. And approval route for mining of titanium bearing minerals and
its ores.
Way Forward
There is a need for an expedition of the clearance process for the judicious utilisation
of mineral resources.
5/6
Stringent implementation of mining-related rules is needed especially regarding the
ban on Rat-Hole and unscientific mining to prevent mine-related accidents.
Ensure transparency in block allocations and rule-based order should be established.
Use of technology for a better way of mineral exploration and surveillance systems.
Proper rehabilitation of the displaced population, the tribal rights need to be
respected in accordance with the law.
Proper environmental impact assessment (EIA) and social impact assessment (SIA)
must be conducted before allocating the projects.
Utilisation of DMF to construct physical & social infrastructure and efforts should be
made for the integration of the local population in the process.
A proper regulatory framework for the implementation of the NGT guidelines for the
protection of forest and the least damage to the environment.
Adopting global practices in operations and ensuring safe working conditions for
workers in the mining sector. Undertake measures to avoid occupational hazards.
6/6