MINING IN INDIA

INTRODUCTION
Mining refers to the extraction of valuable minerals or other geological materials from the earth, usually from ore bodies, veins, seams or placer deposits. In India, mining plays a crucial role in supplying raw materials to core industries such as power, steel, cement, fertilizers and manufacturing. Coal mining, in particular, occupies a central position in India’s energy security. Under the Atmanirbhar Bharat package, commercial coal mining has been permitted to enhance self-reliance and reduce import dependence.

STATUS OF MINING SECTOR IN INDIA

• India possesses the world’s fifth-largest coal reserves.
• India is the second-largest coal producer globally after China.
• Annual coal production is around 729 million tonnes, with nearly 83% produced by Coal India Limited.
• India is also the second-largest importer of coal.
• Mining contributes around 1.75% to India’s GDP.

RECENT DEVELOPMENTS

• KABIL initiative under Ministry of Mines for overseas mineral acquisition.
• Focus on critical minerals such as lithium, cobalt, nickel and rare earth elements.
• Engagement with Australia, Argentina, Bolivia and Chile.

SIGNIFICANCE OF CRITICAL AND STRATEGIC MINERALS

• Ensures mineral security and Atmanirbhar Bharat.
• Supports EVs, renewable energy, defence and aerospace sectors.
• Reduces geopolitical vulnerabilities.

IMPORTANCE OF MINING

SOCIAL

• Employment generation and local development.
• Coal supports electricity generation and grid stability.
• Value addition through coal gasification.

ECONOMIC

• Revenue for Centre and States.
• Infrastructure development via DMF.
• Boost to industrialisation and investment.
• Reduction in coal imports.

CHALLENGES

ENVIRONMENTAL

• Deforestation and biodiversity loss.
• Pollution and ecological degradation.

ECONOMIC AND ADMINISTRATIVE

• Delay in clearances.
• High capital and technology needs.
• Coal India dominance.

LAND AND SOCIAL

• Land disputes and rehabilitation issues.
• Safety and labour concerns.

GOVERNMENT INITIATIVES

• Mineral Laws Amendment Act, 2020.
• 100% FDI in coal mining.
• Commercial coal mining.
• UTTAM App, CAMS, SHAKTI policy.
• Single Window Clearance.

FUTURE PROSPECTS

• Mines and Minerals Amendment Act, 2021.
• Centre-State coordination.
• Zero-loss principle in mining.

CONCLUSION
Mining is critical for India’s energy security and growth. Sustainable, transparent and inclusive mining is essential for long-term development.

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Subject: Economics

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