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.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement