Required: A Paradigm Shift In Mineral Policy

India has vast economic potential in the mineral sector owing to its significant and diverse mineral resources.

- Satnam Singh & Isha Gakhar

To a greater extent, the potential of the mining sector’s contribution towards the economic development of the country is influenced by the country’s legal and policy framework. A couple of years ago, the Indian mining sector was facing a lot of constraints that were impeding its steady growth. These included long processing time for application for new rights, delay in getting clearances, unavailability of baseline geoscience data, lack of discretion in the grant of mineral concessions, low spendings on explorations and lack of suitable infrastructure for evacuation of mineral etc.

Some significant transformation has happened in the mineral sector of the country during recent years with the introduction of the National Mineral Exploration Policy (NMEP), 2016, amendments to the Mines and Minerals (Development and Regulation) Act (MMDRA) etc. Measures include making auctions the sole method for the allotment of mineral concessions, introduction of stricter norms for punishment for illegal mining activities, mandating the establishment of the District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) etc.

Amendments to the MMDR Act brought transparency in the process of granting mineral concessions. Until July 2018, 43 mineral blocks have been auctioned in the country. Within the auction basket of 43 blocks, 23 limestone, 12 iron ore, three gold, 2 manganese and one each in graphite, bauxite and diamond have been auctioned across the mineral-bearing states. Karnataka has secured a lead in the auctions with seven iron ore blocks and is closely followed by Madhya Pradesh and Rajasthan.