Mining

Summary
  • The Mining industry in India is one of the core industries of the economy. It provides basic raw materials to many important industries.
  • India is the world’s second-largest coal producer and being the 5th largest country in terms of coal deposits. It is a net exporter of finished steel and has the potential to become a champion in certain grades of steel.
  • India Targets 1.2 bn Ton Coal Production By 2023-24.
  • India has become the world’s second largest producer as well consumer of steel. During the financial year 2020-21, the total finished steel consumption in the country was 96.2 mn Tonnes and is expected to reach about 160 mn Tonnes (MT) by 2024-25 and about 250 MT by 2030-31.
  • India is among the top 12 destinations for biotechnology in the world, with approximately 3% share if the global biotechnology industry. 
  • The production of finished steel in the country from April 2020 to January 2020 was recorded at 76.04 MT. The exports between April 2020 and February 2021 stood at 9.4 MT.40
  • Steel Authority of India Limited (SAIL) reported a growth of 7% in its crude steel production during November’20 (1.417 MT) over CPLY (1.328 MT).29
  • The Mining industry is characterized by a large number of small operational mines.1
  • India is endowed with huge resources of many metallic and non-metallic minerals.2 India is home to 1,531 operating mines and  produces 95 minerals, which includes 4 fuels, 10 metallic, 23 non-metallic, 3 atomic and 55 minor minerals (including building and other materials).3
  • Based on the geological mapping of the country, an area of 571,000 sq. km, out of a total of 3.1 mn sq. km. has been demarcated as an Obvious Geological Potential (OGP) area, where the geological potential for the occurrence of mineral deposits is higher.5
  •  Steel and Steel Products (Quality Control) Order, 2020.33
  • India has rich deposits of coal in the world. The total estimated reserves of coal in 2020 were 344.02 bn tonnes, an addition of 17.53 bn tonnes over 2019 in the corresponding period. 
  • In 2020-21, 10.78 mn ton total finished steel exported. India has been a net exporter of finished Steel since April- June 2021 with 3.56 mn tonnes.
  • Metals sector engages 11.49 lakhs of people consisting of 7.06 % of the total employment share.
Reasons to Invest
  •  The government’s aim is to increase domestic coal production to 1.2 bn metric tonnes by FY 23-24.
  • Mineral concessions (Mining Lease & Prospecting Licence cum Mining Lease) grant to be granted through auctions for the companies interested in mining or for the raw material for their downstream industry.
  • An Inter-Ministerial Group facilitator constituted for expediting the clearances and approvals process.
  • Exploration companies can venture into the revenue share model, being formulated for the exploration of blocks identified by the Geological Survey of India. This has been enabled by the National Mineral Exploration policy, 2016 announced in July 2016. Around 100 blocks have already been identified by GSI for auction.
  • With the launch of the National Mineral Policy 2019, India presents a major opportunity for investors.
  • India has large reserves of Iron ore, Bauxite, Chromium, Manganese ore, Baryte, Rare earth and Mineral salts.
  • India has vast mineral potential with mining leases granted for the longer and stable tenure of 50 years.
  • The global demand for lithium is expected to be more than double at 117,400 mt by 2024 from an estimated 47,300 mt in 2020 due to likely increase in electric vehicle battery production.
  • The demand for various metals and minerals will grow substantially over the next 15 years.
  • India’s strategic location enables convenient exports.
  • The Amendments/additions to the Policy for Providing Preference to Domestically Manufactured Iron & Steel Products in Government Procurement is revised 2019. 
  • The total number of steel plants producing crude steel in the country during 2019-20 is 914 and production of finished steel in the country in April-December, 2020 is recorded at 66.56 MT.
  • Consumption of steel has increased in the rural India from 19 Kg in 2019-20 to 21.5 kg per capita for the year 2020-21. GOI aims to increase the awareness and consumption of steel in rural areas. 
  • The vision of National Steel Policy 2017 is to increase steel production capacity in India to 300 mn tonnes by 2030-31, per capita steel consumption to 160 KG, reduce greenhouse gas emissions, many targets have been set.
  • GOI has set a target outlay of more than 111 lakh crores in National Infrastructure Pipeline (NIP) by 2024-25, which will increase the demand for steel as well as reduce the cost of production of steel. The slurry pipeline will have an outlay of more than 25,000 crores. The process involved in installation of slurry pipeline has been simplified. 
  • The Government is working on schemes like Coal Gasification, National Hydrogen Mission to reduce the dependence of steel industry on coke reduce greenhouse gas emissions.
  • Bio-Reclamation of mined out land has been taken up on a big scale by all coal companies through massive tree plantation drive to reduce the total projected carbon emissions by one bn tonnes till 2030. In next five years target is to cover more than 12000 hectares of land for plantation which will help in having carbon sink potential to the tune of more than one lakh tonne per annum.
  • First Mile Connectivity (FMC) is a major initiative by coal companies to minimise environmental pollution, where coal is being transported through conveyor belt from Coal Handling Plants to Silo for loading. The process eliminates movement of coal through road. 39 such projects have been planned to be commissioned by 2023-24 with an investment of over INR 13000 crores.
  • Under FMC Projects, CIL alone will enhance its mechanical loading and transport of coal from the present level of 120 mn tonnes to 565 mn tonnes by 2023-24.
  • FMC projects will save diesel worth INR 2100 crores per annum. There will be reduction in vehicle density by 2770 trucks per hour paving the way for a significant reduction in carbon emission.
  • First Mile Connectivity (FMC) project shifts the Government's focus of transportation of coal from point of production to the point of consumption in a hassle free process. The investment amount to be infused by Coal India for the FMC projects is estimated at INR 14,200 crores by FY 2023-24, in two phases for its 49 FMC projects. To further increase the transportation of coal, CIL has placed Rapid Loading System (RLS) in 19 mines of CIL.
  • CIL is constructing 21 additional railway sidings at an estimated investment of INR 3,370 crores across four of its subsidiaries which include both greenfield and brownfield ones to be commissioned by FY24. CIL aims to move about 555 MT of coal per year through mechanized means by FY24.
  • With the objectives of facilitating utilization of lands which are mined out or are practically unsuitable for coal mining and for increasing investment and job creation in coal sector, the Union Cabinet chaired has approved the policy for use of land acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957 [CBA Act]. The policy provides for utilisation of such land for the purpose of development and setting up of infrastructure relating to coal and energy.

 

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Key Achievements
  • National Mineral Development Corporation (NMDC), a public enterprise under Ministry of Steel produced 8.91 million tonnes of iron and sold.
  • The Company registered the best ever saleable steel Q2 production of 3.752 MT in Q2 FY’21 surpassing the previous best of 3.658 MT achieved during Q2 FY’18. The saleable steel production in Q2 FY’21 grew by 5% over CPLY.23
  • National Mineral Exploration Trust (NMET) has approved 187 exploration projects with a total cost of Rs.895.72 crore up to 31st December 2019. Among this total 69 projects have already been completed and 118 projects are ongoing. 
  • During the month of September 2020, the production from mines under CM (SP) Act, 2015 is 2.345 mn tonne and revenue from mines under CM (SP) Act, 2015 is INR 45.96 CR.22 
  • The 3rd Annual Leadership Summit “Navigating New Challenges” organized by US India Strategic Partnership Forum and delivered the keynote address on the roadmap for India-U.S. Energy Partnership on 02.09.2020. 
  • A total of 406.22 MW of Renewable Energy capacity was added in October, taking the cumulative installed RE capacity to 89.63 GW.25
  • Production of coal during 2019-20: Coal production grew at CAGR 4.6% over FY14-FY20 to 730.873 MT.39 
  • The revenue from mines allocated under CM(SP) Act, 2015 is INR 45.05 cr.
  • The production from mines allocated under CM (SP) Act, 2015 is 2.77 mn tonne.26
  • The world production of Aluminium Metal in Q3 2020 was about 16.23 mn tonnes against world consumption of 15.62 mn tonnes, resulting in a market surplus of 0.61 mn tonnes. 27
  • Steel production has crossed previous year levels in the last three months with 1.9 per cent and 0.4 per cent growth in September and October respectively.30 
  • E-auction of 19 coal mines for commercial mining was held successfully during 02.11.2020 to 09.11.2020.31
  • 5th JWG Meeting on coal held on 5th November 2020 between India and Indonesia chaired by AS (Coal).
  • 12 new Eco-Parks in the mining area are under different stages of development in all the subsidiaries of CIL, SCCL & NLCIL and will be completed by next year to showcase a clean environment. Bamboo plantations along coal transport roads and on the edges of mines will help in minimizing dust pollution.
  • WCL has developed a huge Eco-Park in its mining area near Nagpur and is running Eco-Mine Tourism Circuit, a first of its kind in India, in collaboration with MTDC where people visit mining operations of both Opencast & Underground Mine. On a similar pattern, Eco-Mine Tourism Circuit is going to start shortly in different coal companies with an investment of over INR 100 crores to showcase efforts made by coal companies in environmental protection. 
  • GOI has handed over 52 Geological Survey of India (GSI) approved mine blocks to 15 State Governments. An E-portal of an accreditation scheme for Mineral exploration has been launched to increase transparency and Ease of Doing Business.
  • Coal production from captive mines during this year till November has already reached around 50 MT and it is very likely to touch 85 MT during the current financial year (2021-22). Coal production from captive mines is expected to reach 120 MT during the  next financial year (2022-23).
  • India’s total coal production increased by 6.74 % to 74.78 mn Ton (MT) during December 2021 as compared to the same period in 2019.
  • Twenty Four Eco Parks Developed By Coal India and Subsidiaries.
  • National Mineral Exploration Trust Completes 117 Projects out of 200 Approved Mineral Projects.
Recent Announcements

13th April 2022: Cabinet approves policy for use of land acquired under the Coal Bearing Areas (Acquisition & Development) Act, 1957.

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29th March 2022: Coal Sector to Invest INR 12500 Crore for 35 First Mile Connectivity Projects

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21st March 2022: The Ministry of Mines, GoI has signed MoUs with various nations for technical exchange and development of mining sector.

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19th March 2022: NMDC signs MoU with IIT Kharagpur for Drone-Based Mineral Exploration.

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20th February 2022: Shri Ram Chandra Prasad Singh lays foundation stone for Coke Oven Plant of KIOCL, Panambur Mangalore.

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Statistics
  • Coal Production Increases by 29% to 66.58 Mn Ton During April 2022.
  • India is home to 1,531 operating mines and produces 95 minerals – 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals10
  • Among 175 Mineral Resource Assessment Projects, 29 are on ferrous minerals (iron, manganese and chromite), 42 precious metals and minerals, 72 for non-ferrous and strategic minerals, 32 on industrial and fertilizer minerals.11
  • Coal production (weight: 10.33 per cent) increased by 6.6 per cent in February, 2022 over February, 2021. Its cumulative index increased by 9.8 per cent during April to February, 2021-22 over corresponding period of the previous year.
  • Steel production (weight: 17.92 percent) increased by 3.7 percent in March 2022 over March 2021. Its cumulative index increased by 16.9 percent during April to March 2021-22 over the corresponding period of previous year.
  • Exports of Mica, Coal & Other Ores, Minerals including processed minerals values at  USD 489.90 mn in April 2022 and records positive growth vis-à-vis April 2021 of 24.81%. 
  • Exports of Iron Ore values at  USD 418.48 mn in April 2022.
  • Production level of important minerals in March 2022 were: Coal 958 lakh tonnes, Lignite 60 lakh tonnes, Natural gas (utilized) 2813 million cu. m., Petroleum (crude) 25 lakh tonnes, Bauxite 2031 thousand tonnes, Chromite 414 thousand tonnes, Copper conc. 9 thousand tonnes, Gold 169 kg, Iron ore 270 lakh tonnes, Lead conc. 39 thousand tonnes, Manganese ore 269 thousand tonnes, Zinc conc. 182 thousand tonnes, Limestone 373 lakh tonnes, Phosphorite 158 thousand tonnes, Magnesite 12 thousand tonnes, and Diamond 8 carat.   
  • The production of important minerals showing positive growth during March, 2022 over March 2021 include: Iron Ore (19.2%), Phosphorite (17.4%), Lignite (16.2%), Gold (13.8%), Zinc conc (10.9%), Natural Gas (U) (7.6%), and Magnesite (6.3%). 
  • During the year 2021-22, the transportation of Coal through Railways has recorded 111 Mn tonnes and loaded a record 653 Mn Tonnes as compared to 542 Mn tonnes in the previous year i.e. a growth of 20.4 %.
  • The Average Index of Industrial Production of the Mining Sector in the FY 2021-22 is 113.3 and has grown by 12.2 percent.
  • The Average Index of Industrial Production of Manufacturing of basic metals in the FY 2021-22 is 177.3 and has grown by 18.4 percent.
  • The index of mineral production of mining and quarrying sector for the month of March 2022 (Base: 2011-12=100) at 144.6, was 4.0% higher as compared to the level in March 2021.
  • The cumulative growth of index of mineral production of mining and quarrying sector for the period April- March 2021-22 over the corresponding period of the previous year has increased 12.2 percent.       
Growth Drivers
  • The rise in infrastructure development and automotive production is driving the growth of the metals and mining industry in India.12
  • GOI aims to utilise the coal loading system at Paradip Port to increase coal transportation through the sea route and make it a coal hub.
  • Minerals like manganese, lead, copper, alumina are expected to witness double-digit growth in the years ahead. There is a significant scope for new mining capacities in iron ore, bauxite, and coal.
  • The production level of important minerals in March 2020 (provisional) were: Coal 958 lakh tonnes, Lignite 42 lakh tonnes, Natural gas (utilized) 2323 million cu. m., Petroleum (crude) 27 lakh tonnes, Bauxite 1634 thousand tonnes, Chromite 582 thousand tonnes, Copper conc. 11 thousand tonnes, Gold 153 kg, Iron ore 204 lakh tonnes, Lead conc. 26 thousand tonnes, Manganese ore 181 thousand tonnes, Zinc conc. 117 thousand tonnes, Apatite & Phosphorite 133 thousand tonnes, Limestone 272 lakh tonnes, Magnesite 8 thousand tonnes and Diamond 3213 carat16
  • India has an advantage in the cost of production and in conversion costs of steel and alumina.
  • India and Japan signed Memorandum of Cooperation in the field of Steel Industry to promote the development of cooperation in the steel sector between two countries through joint activities under the framework of India Japan Steel Dialogue.34 
  • Single Window Clearance Portal for Coal mining. Coal Sector seemed entangled in bureaucracy and lack of transparency amidst many allegations of corruption.35
  • Surface Coal Gasification Projects have been planned for Syn Gas production to be used further either for production of Methanol/Ethanol, Urea or Petrochemicals. This will be a way forward for use of dry fuel as green coal with relatively lesser carbon footprint and environmental pollution. One such CIL JV project of 2.5 MTPA capacity is already in operation in Talcher Coalfield in Odisha. Other five projects with an investment of about INR 30,000 Crore is under formulation by different Subsidiaries of CIL.
  • Fourteen Railway Projects Costing INR 22,067 crores being Undertaken to Enhance Coal Transportation Efficiency and further enhancing the capacity of coal evacuation process which will help in reducing the time and cost incurred in the transportation of the coal. These projects will cover the distance of 2680 Km approximately, which will be spread across the Indian states of Jharkhand, Odisha and Chhattisgarh.
  • Development of 23 project works of length 600.13 Km under CRIF scheme for FY 2021-22 in the State of Madhya Pradesh has been approved with a budget outlay of INR 1814.90 Crores.
  • Ministry of Mines has created a Joint Venture company namely Khanij Bidesh India Ltd (KABIL) with participating interest of National Aluminium Company Ltd (NALCO), Hindustan Copper Ltd (HCL) and Mineral Exploration Corporation Ltd (MECL) to ensure mineral security of the nation and to attain self-reliance in the area of critical & strategic minerals.
  • IP Bardin, world renowned R&D institute and leader in development of specialty steel, will collaborate with India to develop and strengthen R&D in steel within the country.
  • Mahagenco has entered into an MOU with WCL for the supply of 83.20 lakh tonnes of coal against bridge linkage. 
  • The abandoned quarries of CIL are used for dumping /filling of fly ash in to the worked out area for suitable reclamation, development of eco and mine tourism parks, afforestation, pisciculture, source to supply of drinking water and other domestic use, generation of sand from overburden of opencast mines at few places.
  • The Coke Oven Plant of KIOCL, Panambur Mangalore project is for Setting up of 2.0 LTPA Ductile Iron Spun Pipe Plant under forward & 1.80 LTPA Coke Oven Plant under backward integration projects at Blast Furnace Unit at a Capex of INR 836.90 Crores  and would take  24 months  to complete from the date of placement of order on the Main technological package supplier.
  • MCL under its CSR initiative has signed two MoU with an investment of INR 1.38 crore with the CIPET, Bhubaneswar for providing skill development training to the youths from the peripheral villages of mining areas.
  • NMDC signs MoU with IIT Kharagpur for Drone-Based Mineral Exploration.  The collaboration would lead to the development of software spectral tools for mineral excavation and capacity building programs on mining technology.
  • The Ministry of Mines, GoI has signed MoUs regarding technical exchange and development of mining sector with the Republic of Mali; the Kingdom of Morocco; the Republic of Peru; the Republic of Zimbabwe; the Plurinational State of Bolivia; the Federative Republic of Brazil; the Ministry of Energy and Mines, British Columbia; the Republic of Chile; the Florida International University Board of Trustees on behalf of its Department of Earth and Environment, College of Arts, Sciences and Education, United States of America; and Rosgeologia (Rosgeo) a legal entity incorporated under the laws of the Russian Federation.
  • Coal Sector to Invest INR 12500 Crore for 35 First Mile Connectivity Projects.
  • Coal Companies & Indian Railways have envisaged to jointly ensure per day coal loading of 415 rakes of domestic coal and 30 rakes of imported coal to power sector
FDI Policy

FDI up to 100% under the automatic route is allowed in:

  1. Mining and exploration of metal and non-metal ores including diamond, gold, silver and precious ores but excluding titanium bearing minerals and its ores; subject to the Mines and Minerals (Development & Regulation) Act, 1957.
  2. Coal and Lignite mining for captive consumption by power projects, iron and steel cement units and other eligible activities permitted under and subject to the provisions of Coal Mines Nationalization Act, 1973.
  3. Setting up coal processing plans like washeries subject to the condition that the company shall not do coal mining and shall not sell washed coal or sized coal from its coal processing plants in the open market and shall supply the washed or sized coal to those parties who are supplying raw coal to coal processing plans for washing or sizing.

Commercial mining, with a provision for 100% foreign investment, has also been allowed by the Government:

  1. Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities.
  2. Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities subject to industry regulations and the Mines and Minerals (Development and Regulation Act 1957).

The cumulative FDI equity inflow in the Mining Industry is USD  3,004.28 mn during the period April 2000 to December 2021.21  

The cumulative FDI equity inflow in the Coal Production is USD  27.73 mn during the period April 2000 to December 2021.

The cumulative FDI equity inflow in Diamond, Gold Ornaments is USD 1,201.56  mn during the period April 2000 to December 2021. 

Read more about Foreign Direct Investment Policy in India >

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Specialty Steel for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

Financial Outlay- INR 6,322 cr

Products: Coated Steel, High Strengh Steel, Steel Rails, A-lly Steel Bars & Rods

For more details on PLI Schemes, Click Here

Sector Policy
  • MCDR have been framed under section 18 of the MMDR Act, 1957. The highlights of amendments in the Rules are as follows:
    (i) Rules prescribed that that all plans and sections related to mine shall be prepared by combination of Digital Global Positioning System (DGPS) or Total Station or by drone survey in relation to certain or all leases as may be specified by Indian Bureau of Mines (IBM).
    (ii) New Rule inserted to provide for submission of digital images of mining area by lessees and Letter of Intent holders. Lessees having annual excavation plan of 1 million tonne or more or having leased area of 50 hectare or more are required to submit drone survey images of leased area and up to 100 meters outside the lease boundary every year. Other lessees to submit high resolution satellite images. This step will not only improve mine planning practices, security and safety in the mines but also ensure better supervision of mining operations.
    (iii) Requirement of submitting satellite images obtained from CARTOSAT-2 satellite LISS-IV sensor on the scale of cadastral map deleted in view of the insertion of provision for submission of high resolution Georeferenced Ortho-rectified Multispectral satellite and use of drone survey as per Rule 34A.
    (iv) Provision of daily return omitted to reduce compliance burden. Power of taking action against incomplete or wrong or false information in monthly or annual returns given to IBM, in addition to State Govt.
    (v) Allowed engagement of a part-time mining engineer or a part-time geologist for category 'A' mines having leased area below 25 hectares. This will ease compliance burden for small miners.
    (vi) In order to increase employment opportunity, diploma in mining and mine surveying granted by duly recognized institute along with a second class certificate of competency issued by the Director General of Mines Safety is added in qualification for full time Mining Engineer. Also, qualification for part time Mining Engineer added.
    (vii) Penalty provisions in the rules have been rationalized. Previously, the rules provided for penalty of imprisonment upto 2 years or fine upto 5 lakh rupees or both for violation of each and every rule irrespective of the severity of the violation. 
    (viii) Provision of forfeiture of financial assurance or performance security of the lease holder added in case of non-submission of final mine closure plan within the period specified.
    (ix) Amount of financial assurance increased to five lakh rupees for Category ‘A’ mines and three lakh rupees for Category ‘B’ mines from existing three and two lakh rupees, respectively.
  • The MCR, 2016 has been amended to amend the Mines and Minerals (Development and Amendment) Act, 1957 w.e.f. 28.03.2021 with the objectives of increasing employment and investment in the mining sector, increase revenue to the States, increase the production and time bound operationalisation of mines, increase the pace of exploration and auction of mineral resources, etc. 
    The highlights of amendments in the Rules are as follows:
    (i) New rules inserted to provide manner of sale of 50% of mineral produced from the captive leases. 
    (ii) Provision added to allow disposal of overburden/ waste rock/ mineral below the threshold value, which is generated during the course of mining or beneficiation of the mineral. 
    (iii) Minimum area for grant of mining lease has been revised from 5 ha. to 4 ha. For certain specific deposits, minimum 2 ha. is provided.
    (iv) Part surrender of mining lease area allowed in all cases. Presently, part surrender was allowed only in case of non-grant of forest clearance.
    (v) Rules amended to allow transfer of composite licence or mining lease of all types of mine.
    (vi) New rules inserted to provide for mutation of ML/ CL in favour legal heirs on death of the lessee or licencee.
    (vii) Interest on delayed payments revised from existing 24% to 12%.
    (viii) Rules regarding period of mining lease granted to Government companies and their payments incorporated in the MCR, 2016.
    (ix) Penalty provisions in the rules have been rationalized. Previously, the rules provided for penalty of imprisonment upto 2 years or fine upto 5 lakh rupees or both for violation of each and every rule irrespective of the severity of the violation. Amendment in the rules categorized the violations of the rules under the following major heads:
    o    Major Violations: Penalty of imprisonment, fine or both.
    o    Minor Violations: Penalty reduced. Penalty of only fine for such violations prescribed.
    o    Violation of other rules has been decriminalized. These rules did not cast any significant obligation on the concession holder or any other person. Thus, violation of 49 rules has been decriminalized.
     (X) Rescission of two rules, have been notified namely, Minerals (Transfer of Mining Leases Granted Otherwise than through Auction for Captive Purpose) Rules, 2016 and Mineral (Mining by Government Company), Rules, 2015. Read More
  • The Government has amended the Mines and Minerals Development and Regulation Act 1957 (MMDR Act). The amendment removed discretion by instituting auction to be the sole method of grant of major mineral concessions and, thereby bringing in greater transparency. It also provided the much-needed impetus to the mining industry by deemed extension of mining leases. The Salient features of the recent amendments are:
    • Mineral Concessions Grant Through Auctions to bring transparency and remove discretion.
    • District Mineral Foundation (DMF) to address the grievances of the people affected by mining and in turn improve the image of the mining industry.
    • National Mineral Exploration Trust (NMET) for incentivizing regional and detailed exploration to fill the gaps in exploration in the country.
    • Mining Leases for 50 years and even the existing leases deemed extended eliminating any renewals for security of tenure.
    • Stronger penal provisions have been put in place to check illegal mining. A penalty of up to (approximately) USD 7200 per hectare of the area and jail term of up to 5 years is the probable punishment for illegal mining.17
  • National Mineral Exploration Policy 2019, the aim on the National Mineral Policy (NMP) 2019 is to have an effective, meaningful and implementable policy that brings further transparency, better regulation and enforcement, balanced social and economic growth as well as sustainable mining practices. The NMP 2019 focuses on the Government’s Make in India initiative and gender sensitivity in terms of its vision.21 The NMP 2019 aims to attract private investment through incentives while the efforts would be made to maintain a database of mineral resources and tenements under the mining tenement system.
  • Hon’ble Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Speciality Steel Sector through the Ministry of Steel of with a financial outlay of INR 6322 cr over a five-year period for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
    Read More
  •  Mission Purvodaya emphasized to harness the untapped potential of the region to fuel the next wave of national growth. The focus was on Eastern India towards self-reliance and contribution in the making of Aatmanirbhar Bharat. India’s annual per capita steel consumption is 74.1 kg and is one-third the global average (224.5kg). 28
  • National Geoscience Data Repository (NGDR)37
    Collation, assimilation, and integration of the data generated from the National Geoscience Data Repository and Geochemical, Geophysical, and Aero Geophysical Mapping Programs to identify more areas for mineral exploration.
  • National Mineral Policy, 2019 inter alia provides that dedicated mineral corridors shall be planned to facilitate transport of minerals from mining areas in hinterland alongwith encouraging the local evacuation networks to be built in an integrated manner.

 

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Financial Support

Bills41

  • The Mines and Minerals (Developments and Regulation) Amendment Bill, 2021 proposes to develop the mining sector to its full potential for faster economic growth.

UNION BUDGET 2022-23

  • The total budgetary allocation for FY 2022-23 towards the  Ministry of Coal is INR 393.24 cr.
  • The total budgetary allocation for FY 2022-23 towards the Ministry of Mines is INR  1,508 cr.
  • The total budgetary allocation for FY 2022-23 towards the Ministry of Steel is INR 47  cr.
Investment Opportunities

Post Auction Mining Clearances and Approvals Facilitator

Mineral blocks of non-minor minerals are being put up for auctions by the States for Mining or Prospecting cum Mining, depending on their level of exploration. The grant process is to be completely transparent through competitive bidding on an e-auction portal. An Inter-Ministerial Group, Post Auction Mining Clearances and Approvals Facilitator (PAMCAF) has been constituted which will expedite the requisite clearances to enable the early start of mining activity.19

National Mineral Policy 2019

The aim on the National Mineral Policy (NMP) 2019 is to have an effective, meaningful and implementable policy that brings further transparency, better regulation and enforcement, balanced social and economic growth as well as sustainable mining practices. The NMP 2019 focuses on the Government’s Make in India initiative and gender sensitivity in terms of its vision.20 

The NMP 2019 aims to attract private investment through incentives while the efforts would be made to maintain a database of mineral resources and tenements under the mining tenement system.

 

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Foreign Investors
  • ​BHP Billiton (Australia)
  • Rio Tinto (Australia)
  • De Beers (Anglo American)
  • Australian Indian Resources (Australia)
  • India Resources Limited (Australia)
Agencies
Sources
  1. “Ministry of Mines”, Annual Report 2018-19, https://mines.gov.in/writereaddata/UploadFile/English637094270360450099.pd
  2. “Ministry of Mines”, Annual Report 2018-19, https://mines.gov.in/writereaddata/UploadFile/English637094270360450099.pdf
  3. “Ministry of Mines”, Annual Report 2018-19, https://mines.gov.in/writereaddata/UploadFile/English637094270360450099.pdf
  4. “Ministry of Mines”, Annual Report 2018-19, https://mines.gov.in/writereaddata/UploadFile/English637094270360450099.pdf
  5. “Ministry of Mines”, Annual Report 2018-19, https://mines.gov.in/writereaddata/UploadFile/English637094270360450099.pdf
  6. “Ministry of Mines”, Annual Report 2018-19, https://mines.gov.in/writereaddata/UploadFile/English637094270360450099.pdf
  7. “Ministry of Mines”, Annual Report 2018-19, https://mines.gov.in/writereaddata/UploadFile/English637094270360450099.pdf
  8. “Ministry of Mines”, Annual Report 2018-19, https://mines.gov.in/writereaddata/UploadFile/English637094270360450099.pdf
  9. “Ministry of Mines”, Annual Report 2018-19, https://mines.gov.in/writereaddata/UploadFile/English637094270360450099.pdf
  10. “Ministry of Mines”, Annual Report 2017-18, https://mines.gov.in/writereaddata/UploadFile/Mines_AR_2017-18_English.pdf
  11. “Ministry of Mines”, Annual Report 2017-18, https://mines.gov.in/writereaddata/UploadFile/Mines_AR_2017-18_English.pdf
  12. “Ministry of Mines”, Annual Report 2017-18, https://mines.gov.in/writereaddata/UploadFile/Mines_AR_2017-18_English.pdf
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