National Mineral Policy 2019, Objectives, Features, Implementation

India is rich in natural resources and produces more than 95 different minerals including metallic, non-metallic, atomic, and minor minerals. To manage this vast mineral wealth efficiently, the Government introduced the National Mineral Policy (NMP) 2019. It aims to promote sustainable, transparent, and responsible mining that benefits both the economy and local communities. The policy replaces the National Mineral Policy 2008 and provides a roadmap to modernize India’s mining sector while protecting the environment.

National Mineral Policy 2019

The National Mineral Policy 2019 is a guideline approved by the Union Cabinet to manage exploration, extraction, and use of non-fuel and non-coal minerals. It promotes the idea that minerals are a national resource, and the State acts as a trustee for the people. It aligns with India’s national goals like “Make in India,” import reduction, and sustainable development by focusing on environmental protection, transparency, and social welfare.

National Mineral Policy 2019 Historical Background

The earlier 2008 policy was revised due to several reasons:

• Changes in mining laws after the MMDR Act amendments (2015) that introduced auction-based mining leases.
• Supreme Court rulings highlighting the need for sustainable mining.
• Technological progress such as geospatial mapping and deep-sea exploration.
• Rising focus on tribal rights, environment, and community participation.
• The government, after consultation with states, experts, and industries, framed a modern policy suited for current challenges.

‹ ›

National Mineral Policy 2019 Objectives

The major objectives and aim of the National Mineral Policy 2019 has been discussed below:

• Increase mineral exploration and resource mapping.
• Promote sustainable and eco-friendly mining.
• Attract domestic and foreign investments.
• Reduce import dependence for strategic minerals.
• Ensure equitable sharing of benefits with mining-affected communities.
• Improve governance with digital systems and faster clearances.

National Mineral Policy 2019 Features

Key features of the National Mineral Policy 2019 has been listed below:

• Mining Recognized as an Industry: NMP 2019 gives the mining sector full industry status, allowing easier access to finance, infrastructure support, and mergers & acquisitions.
• Focus on Exploration and Data: The policy aims to strengthen geological surveys, digital data mapping, and encourages both public and private investment in mineral exploration.
• Transparent Allocation System: The allocation of mining leases will be done through open auctions to ensure transparency and fair competition.
• Encouragement for Deep-Sea Mining: India will explore deep-sea mineral resources such as polymetallic nodules using advanced technologies, while ensuring environmental protection.
• Infrastructure Development for Mining: The policy promotes mineral transport corridors, rail and port connectivity, and use of coastal and inland waterways to reduce logistics costs.
• Environmental and Social Responsibility

• Mandatory mine closure plans and land rehabilitation.
• Use of District Mineral Fund (DMF) for health, education, and livelihood of affected communities.
• Gender-sensitive and inclusive development.

• Digital Governance and Single Window System: Introduction of a Mining Tenement System and e-clearances to reduce delays, corruption, and manual paperwork.

National Mineral Policy 2019 Implementation Mechanism

To ensure effective execution, the policy suggests:

• A National Geoscience Data Repository for real-time data.
• Strengthening of Geological Survey of India (GSI) and state mining directorates.
• Setting up a national minerals portal for data sharing and transparency.
• Using District Mineral Funds (DMFs) for local welfare projects.

National Mineral Policy 2019 Environmental Aspects

National Mineral Policy 2019 balances mining with sustainability through:

• Strict environmental impact assessments (EIA) and rehabilitation norms.
• Protection of biodiversity and water resources.
• Consultation with tribal and local communities before starting mining operations.
• Adoption of scientific methods to reduce land degradation and pollution.

National Mineral Policy 2019 Economic Importance

The economic significance of the National Mineral Policy 2019 has been listed below:

• Ensures raw material security for industries like steel, cement, and manufacturing.
• Generates employment opportunities in rural and mining regions.
• Encourages domestic value addition and exports through downstream processing.
• Reduces import bills by improving domestic production of key minerals.

National Mineral Policy 2019 Challenges

Despite several advancements and progress, the National Mineral Policy 2019 faces several backlashes as:

• Over-reliance on private investment may neglect public welfare.
• Auction system may favour large players over smaller firms.
• Weak environmental enforcement in mining zones.
• Delay in clearances and approvals.
• Poor utilization of District Mineral Fund (DMF).
• Lack of skilled manpower in mining governance.
• Insufficient exploration data.
• Impact on forest and tribal lands.
• Lack of value addition within India.
• Pollution and land degradation.

Way Forward:

• Maintain a balance between profit and people’s welfare through strong regulation.
• Include evaluation criteria like local employment and technical capability.
• Strengthen state-level monitoring and make EIA results public.
• Use digital single-window clearance systems.
• Make DMF spending transparent and focus on health and education.
• Conduct training and capacity-building for officials.
• Encourage public-private partnerships for geological mapping.
• Ensure compliance with the Forest Rights Act and community consultation.
• Promote mineral-based industries and beneficiation units.
• Adopt green mining technologies and promote land restoration.

National Mineral Policy 2019 UPSC

The National Mineral Policy 2019 aims to create a balanced mining ecosystem where economic growth, social equity, and environmental protection go hand in hand. If implemented effectively, it can make India self-reliant in mineral resources, reduce imports, and ensure fair benefits to local communities. Transparent governance, technology-driven exploration, and sustainable practices are the keys to its long-term success. Recent Developments include:

• Launch of Mining Tenement System and digital exploration auction portal by the Ministry of Mines.
• Focus on critical minerals like lithium and cobalt under India’s energy transition goals.
• Strengthening of District Mineral Funds for community development and local infrastructure.
• Introduction of deep-sea mining projects under the “Blue Economy” initiative.