+
Challenges Persist in India's Mining Sector Despite Reforms
COAL & MINING

Challenges Persist in India's Mining Sector Despite Reforms

Despite significant reforms in the Mines and Minerals (Development and Regulation) Act (MMDR Act) in 2015, India?s mining sector faces ongoing challenges. Of the 385 mines auctioned since the introduction of the auction regime, only 50 have commenced operations, underscoring the sector's struggles.

The Minister of Mines and Coal, G Kishan Reddy, reported to Parliament on Monday that the central government?s reforms have led to the auctioning of 385 mineral blocks since 2015. "Of these, 50 mines are already in production," Reddy noted, emphasizing efforts towards achieving ?Aatmanirbhar Bharat? (self-reliant India) in the mining sector.

The MMDR Act amendments aimed to ensure transparency in mineral resource allocation through auctions. These changes have facilitated increased production of key minerals. For instance, iron-ore production surged from 129 million tonnes in 2014-15 to 258 million tonnes in 2022-23, while limestone production rose from 295 million tonnes to 406 million tonnes over the same period.

Despite these gains, the sector?s gross value added remains at 2% of the country's GDP. The value contribution of mining and quarrying has increased from Rs 2904.11 bilion in 2014-15 to Rs 3183.02 billion in 2022-23.

The International Energy Agency's (IEA) 2021 report, "The Role of Critical Minerals in Clean Energy Transition," highlighted the prolonged timeline for major global mining projects, averaging 16.5 years from discovery to production. This indicates the challenges faced by India's mining sector are not unique but part of a broader global trend.

Recent amendments to the MMDR Act in 2021 and 2023 aimed to accelerate mineral production, increase employment, and boost investment in the sector. Key amendments include removing end-use restrictions, allowing captive mines to sell surplus minerals, and lifting transfer restrictions on mineral concessions.

The government remains committed to enhancing domestic mining's share in total mineral consumption, with the latest amendments focusing on increasing exploration and production of critical and deep-seated minerals essential for sectors like high-tech electronics, telecommunications, transport, and defense.

Despite significant reforms in the Mines and Minerals (Development and Regulation) Act (MMDR Act) in 2015, India?s mining sector faces ongoing challenges. Of the 385 mines auctioned since the introduction of the auction regime, only 50 have commenced operations, underscoring the sector's struggles. The Minister of Mines and Coal, G Kishan Reddy, reported to Parliament on Monday that the central government?s reforms have led to the auctioning of 385 mineral blocks since 2015. Of these, 50 mines are already in production, Reddy noted, emphasizing efforts towards achieving ?Aatmanirbhar Bharat? (self-reliant India) in the mining sector. The MMDR Act amendments aimed to ensure transparency in mineral resource allocation through auctions. These changes have facilitated increased production of key minerals. For instance, iron-ore production surged from 129 million tonnes in 2014-15 to 258 million tonnes in 2022-23, while limestone production rose from 295 million tonnes to 406 million tonnes over the same period. Despite these gains, the sector?s gross value added remains at 2% of the country's GDP. The value contribution of mining and quarrying has increased from Rs 2904.11 bilion in 2014-15 to Rs 3183.02 billion in 2022-23. The International Energy Agency's (IEA) 2021 report, The Role of Critical Minerals in Clean Energy Transition, highlighted the prolonged timeline for major global mining projects, averaging 16.5 years from discovery to production. This indicates the challenges faced by India's mining sector are not unique but part of a broader global trend. Recent amendments to the MMDR Act in 2021 and 2023 aimed to accelerate mineral production, increase employment, and boost investment in the sector. Key amendments include removing end-use restrictions, allowing captive mines to sell surplus minerals, and lifting transfer restrictions on mineral concessions. The government remains committed to enhancing domestic mining's share in total mineral consumption, with the latest amendments focusing on increasing exploration and production of critical and deep-seated minerals essential for sectors like high-tech electronics, telecommunications, transport, and defense.

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?