Actions Initiated by the Government
The Indian Government aims the development of mining in a sustainable way that focuses on the effective and optimal use of mineral reserves. Some of the measures taken as discussed as follows:
- The Central Government has the authority to select any mine for a specific and lease it through the auction for a specific end-use purpose. For example, some iron ore mines are utilized for dedicated steel plants. However, these captive mines can sell up to 50% of their production to the market for revenue generation.
- The Central Government arranges the auction of mines in consultation with state governments within a specified time frame. If the state government is unable to execute this, the central government takes over the auction process.
- For the mines with expired leases, the state government has to transfer the lease to a government company for up to 10 years till the time a new lessee is selected. The period of the lease given to the government company may increase as prescribed by the central government.
Mining Sector In India And Its Challenges
India is a mineral-rich country and mining exploration is one of the major industrial activities in India. India is one of the leading countries where varieties of minerals are collected through mining. The mining sector is expected to contribute to the GDP and economic development of the country. The mining sector also provides an opportunity for employment, infrastructure development, earning of foreign exchange, and supply of materials for green technologies. However, there has been no major improvement in the country’s GDP on account of mining in recent years. India has been facing difficulties utilizing the potential of mineral resources through mining activities. In India, despite large land areas with mineral reserves, mining activities are very limited. This is one of the main reasons for the poor contribution of the mining sector. The other factors responsible for further this decline in the growth of the mining sector are the disruptions and closure of mines in some important states due to legislative regulations and local conflicts involving social and cultural issues.