Policy Update
Sivapriya
Introduction
The mining and quarrying sector approximately contributes 2% to India’s GDP and about 10-11% to the total industrial sector’s GDP in 2023-24. It plays a crucial role in providing basic raw materials to several industries, including iron and steel, petroleum and natural gas, electrical and equipment. This contribution is through the constant support and development from the Ministry of Mines.
The Ministry of Mines (MoM) is responsible for survey, exploration, and mining of all minerals, except natural gas, petroleum, atomic minerals, and coal. It administers the Mines and Minerals (Development and Regulation) Act, 1957, and Offshore Areas Mineral (Development and Regulation) Act, 2002.
Mission
- To develop geo-scientific partnerships with State Governments, industry, and other stakeholders to manage mineral resources on land and offshore and develop mineral-based industries on a scientific and sustainable basis.
- To ensure fairness and transparency in the allotment of mineral concessions and establish an e-governance mechanism like the Khanan Pahari mobile app and the Coal Mine Surveillance and Management System (CMSMS) for monitoring and action against illegal mining.
- To ensure that the Geological Survey of India (GSI) and Indian Bureau of Mines (IBM) provide high standards of services.
- To double the production of important minerals like iron ore, bauxite, copper, limestone, chromium, zinc, etc, in the next 5 years, along with a reduction in import dependency.
- To promote exploration and mining of deep-seated minerals to meet the country’s needs and enable progress towards self-sufficiency in mineral production.
Apart from this, the Ministry of Mines has also initiated Copper Vision to meet the sixfold rise in copper demand by 2047, with plans for 5 MTPA refining capacity by 2030.
Functioning
The Ministry undertakes the following functions:
- Legislation for the regulation of mines and development of minerals within the territory of India, including mines and minerals underlying the ocean within the territorial waters, the continental shelf, the EEZs (Exclusive Economic Zone), and other maritime zones of India.
- Regulation of mines and development of minerals other than coal, lignite, and sand for stowing and other minerals declared as prescribed substances for the Atomic Energy Act, 1962, under the control of the Union
- Regulation of other metals and minerals not specifically allotted to any other Ministry/Department, like aluminium, zinc, copper, gold, diamond, lead, and nickel.
- Planning, development, and control of, and assistance to, all industries dealt with by the Ministry.
- Administration and management of GSI and IBM.
- Promotes and develops research and development required in mineral processing in the mineral beneficiation and characterization, chemical analysis of ores and minerals, and analysis of environmental samples, etc.
Apart from the primary functions mentioned above, the Ministry also contributes to various Public Sector Undertakings (PSUs) and Autonomous Bodies as described below:
PSUs
1. NALCO – National Aluminium Company Limited: It is Asia’s largest bauxite-alumina-aluminium complex. NALCO is the only Central Public Sector Undertaking (CPSU) mining bauxite for the production of alumina and aluminum.
2. HCL – Hindustan Copper Limited: It looks over all plants, projects, schemes, and studies related to the exploration and exploitation of copper deposits.
3. MECL – Mineral Exploitation and Consultancy Limited: It was established to bridge the gap between the initial discovery of a prospect and its eventual exploitation.
4. BGML – Bharat Gold Mines Limited: BGML was engaged in KGF (Kolar Gold Fields). It closed down in 2001 under the Industrial Disputes Act, but prospects are still being explored.
Autonomous Bodies
1. NIRM – National Institute of Rock Mechanics: an autonomous research institute that deals with field and laboratory investigations, basic and applied research, and solving complex problems in the spectrum of Rock Mechanics and Engineering.
2. JNARDDC – Jawaharlal Nehru Aluminium Research Development and Design Centre: A joint establishment of the Ministry and UNDP, and the only institute in India to research and develop the aluminium value chain.
Schemes and Initiatives
1. NCMM – National Critical Mineral Mission (2024-31) aims to ensure a sustainable critical mineral supply in India through policy reforms, support, infrastructure, technology, and international collaboration. It aligns with Atmanirbhar Bharat and Viksit Bharat, focusing on securing supply chains and strengthening mineral exploration, mining, and recycling. An outlay of INR 16,300 crores is approved.
2. DMF – District Mineral Foundation (2015): The main objective is to work for the interest and benefit of the people and areas affected by mining-related operations as prescribed by the State Government. So far, DMFs have been set up in 645 districts in 23 states. Between 2015 and 2021, DMF collected funds amounting to INR 53,830 crores.
3. PMKKKY – Pradhan Mantri Khanij Kshetra Kalyan Yojana was established by the DMF to fund development projects in mining-affected areas, focusing on social, infrastructural, and environmental needs. Its objectives include implementing welfare programs, addressing adverse impacts of mining, and ensuring sustainable livelihoods. At least 70% of funds go to priority areas like water, health, and education, with up to 30% for environmental quality.
4. NMM – National Mineral Policy (2019) was formulated to promote domestic industry, reduce import dependency, and support Make in India initiative. It focuses on promoting a fair and transparent allocation of mineral resources to ensure equitable distribution of mineral wealth. The policy has an expected outcome to increase the production of MCDR minerals by 200% and halve the trade deficit in 7 years.
5. NMEP – National Mineral Exploration Policy: Approved in 2016, this policy works to accelerate the exploration activity in the country through private sector participation. It focuses on promoting baseline geoscientific data sharing, research, and exploring deep-seated deposits. It carries out auctions of identified exploration blocks for exploration by the private sector on a sharing basis.
Other Important Information
1. NGDR: National Geoscience Data Repository is a flagship initiative of the Ministry of Mines (MoM) as a part of National Mineral Exploration Policy (NMEP) for hosting all exploration-related geoscientific data for dissemination to enhance the exploration coverage of the country. The GSI is the nodal agency for the implementation of NGDR.
2. NFM (Non-Ferrous Metals) Recycling: The recycling division of JNARDDC aims to promote sustainable recycling of nonferrous metals like aluminium, copper, lead, and zinc, aligned with the SDGs.
3. NLFC – National Landslide Forecasting Centre: NLFC is under the supervision of the GSI and aims to monitor active landslide-prone areas by establishing Landslide Early Warning Systems (LEWS) and developing predictive models using remote sensing and AI.
4. Satyabhama Portal – Science and Technology Yojana for Aatmanirbhar Bharat in Mining Advancement: It has three components – Research and Development (R&D), Information Education and Communication (IEC) and Promotion of Research and Innovation in Startups and MSMEs in Mining, Mineral Processing, Metallurgy, and Recycling Sector (S&T-PRISM).
Conclusion
Mineral production (excluding atomic, minor, and hydrocarbon minerals) has steadily increased over the years, as per Mineral Conservation and Development Rules (MCDR) Returns. In 2018-19, production reached INR 73955 crores, with growth continuing, despite a slight dip in 2022-23. Recovery occurred in 2023-24, reaching INR 140169 crores.
The mining sector remains vital for India’s economy, supported by effective administration and initiatives like the National Critical Mineral Mission, Pradhan Mantri Khanij Kshetra Kalyan Yojana, and the National Mineral Policy. The ministry promotes public-private partnerships, sustainable mining, and recycling to meet evolving needs and boost national development.
References
- Cabinet approves National Mineral Exploration Policy. (n.d.). https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=146629#:~:text=Cabinet%20approves%20National%20Mineral%20Exploration,exploration%20leads%20to%20auctionable%20resources.
- GOVERNMENT OF INDIA & MINISTRY OF MINES. (2019). NATIONAL MINERAL POLICY 2019. NATIONAL MINERAL POLICY 2019
- Government of India & Ministry of Mines. (2023). GUIDELINES FOR PROMOTION OF RESEARCH AND INNOVATION IN STARTUPS AND MSMEs IN MINING, MINERAL PROCESSING, METALLURGY AND RECYCLING SECTOR (S&T-PRISM). In SCIENCE AND TECHNOLOGY PROGRAM OF THE MINISTRY OF MINES. 1 SCIENCE AND TECHNOLOGY PROGRAMME OF MINISTRY OF MINES GUIDELINES FOR PROMOTION OF RESEARCH AND INNOVATION IN STARTUPS AND MSME
- Ministry of Mines. (n.d.-a). NGDR. https://geodataindia.gov.in/login
- Ministry of Mines. (n.d.-b). THE PARTICULARS OF THE ORGANISATION, FUNCTIONS AND DUTIES. THE PARTICULARS OF THE ORGANISATION, FUNCTIONS AND DUTIES Main Functions Ministry of Mines is responsible for the exploration ratio.
- Ministry of Mines, Government of India, Home. (n.d.). https://mines.gov.in/webportal/home
- National Critical Mineral Mission. National Critical Minerals Mission
- National Landslide Forecasting Centre. (n.d.). https://bhusanket.gsi.gov.in/about.html
- National Mineral Policy 2019 to Ensure Sustainable Mining. (n.d.). National Mineral Policy 2019 to Ensure Sustainable Mining
- NFM Recycling. (n.d.). https://nfmrecycling.jnarddc.gov.in/about-us
- SATYABHAMA PORTAL – Ministry of Mines. (n.d.). https://research.mines.gov.in/content.aspx?Page=1000
- Sector Survey: Mining | Make in India. (n.d.). Sector Survey: Mining | Make In India
About the Author
Sivapriya is a research intern at IMPRI. She is pursuing a BA(Hons) Economics degree from Miranda House College, University of Delhi.
Acknowledgment
The author sincerely thanks Aasthaba Jadeja and other IMPRI fellows for their valuable contribution.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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