+
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
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code