Mining Sector in India, Geographical Distribution, Legislative Framework

India is one of the world’s richest countries in terms of mineral resources. The mining sector plays a crucial role in supporting industrial growth, infrastructure development, and employment generation. With abundant reserves of coal, iron ore, bauxite, and rare earth minerals, Mining Sector in India is considered the backbone of several key sectors such as power, steel, automobiles, and construction.

Geographical Distribution of Mines in India

India’s mineral resources are unevenly distributed and are mainly concentrated in specific regions rich in geological formations.

• Jharkhand – Known for its vast reserves of coal, iron ore, copper, mica, and uranium. It is one of the most important mineral-producing states in India.
• Odisha – Rich in iron ore, bauxite, manganese, and chromite. The state plays a major role in India’s steel and aluminium industries.
• Chhattisgarh – Contains large deposits of coal, iron ore, limestone, and dolomite. It is a major contributor to thermal power and steel production.
• Rajasthan – Famous for marble, limestone, gypsum, zinc, and lead. The state is a leading producer of non-metallic minerals and building materials.
• Karnataka – Known for iron ore, gold, manganese, and limestone. It has historically been one of India’s key iron ore-producing states.
• Andhra Pradesh – Rich in barytes, limestone, mica, and coal. It contributes significantly to the cement and energy industries.
• Goa – Primarily known for high-quality iron ore mining, which contributes to mineral exports.

Role of Mining in the Indian Economy

The mining sector plays a vital role in India’s economic growth by supplying essential raw materials to key industries such as power, steel, cement, infrastructure, and manufacturing.

• Mining provides essential raw materials like coal, iron ore, bauxite, and limestone that support major industries such as steel, cement, and power generation.
• The sector contributes approximately 2.3-2.5% to India’s GDP, making it an important component of the country’s primary economic sector.
• It supports infrastructure development by supplying minerals required for construction, transportation, and energy production.
• Mining helps reduce import dependency by strengthening domestic production of minerals like iron ore and coal.
• India is among the leading producers of several minerals, including sheet mica and bauxite, contributing to global mineral supply.
• The mining industry generates employment opportunities for both skilled and unskilled labour, especially in rural and tribal regions.
• Mining activities promote growth in allied sectors such as transportation, equipment manufacturing, and energy industries.
• The sector contributes significantly to government revenue through royalties, taxes, and export earnings.

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Legislative Framework Governing Mining Sector in India

The mining sector in India is governed by central legislation and regulatory institutions that ensure scientific exploration, sustainable mineral extraction, and transparent allocation of mining resources.

• The Mines and Minerals (Development and Regulation) Act, 1957 is the primary law regulating mineral exploration, mining leases, and conservation of mineral resources in India.
• The Constitution of India assigns state governments the authority to regulate minerals located within their territorial boundaries.
• The central government regulates minerals located in offshore areas, especially within India’s Exclusive Economic Zone (EEZ).
• Auction-based allocation of mining leases has been introduced to ensure transparency and reduce corruption in mineral block allocation.
• The framework promotes sustainable mining practices and mandates environmental and safety compliance for mining operations.
• The International Seabed Authority regulates mineral exploration in international seabed areas, and India has exclusive rights to explore polymetallic nodules in the Central Indian Ocean Basin.
• The legislative system also provides mechanisms to prevent illegal mining and encourages scientific mineral exploration.

National Mineral Policy 2019

The National Mineral Policy 2019 aims to promote sustainable and scientific mining practices while encouraging private investment and technological advancement in India’s mining sector.

• Encourages private sector participation in mineral exploration through revenue-sharing models.
• Allows transfer of mining leases and promotes mergers and acquisitions to improve operational efficiency.
• Promotes development of dedicated mineral corridors and improved transportation through coastal waterways and inland shipping.
• Introduces long-term import-export policies for minerals to ensure business stability and better planning.
• Aims to harmonise taxes, levies, and royalty rates with global standards to attract investments.
• Promotes use of e-governance and IT-enabled monitoring systems for transparency and better regulation.
• Strengthens utilisation of District Mineral Foundation (DMF) funds for welfare and development of mining-affected communities.
• Introduces the concept of intergenerational equity to ensure responsible utilisation of mineral resources for future generations.

Mining Sector in India Challenges

The Mining Sector in India faces several structural, environmental, and administrative challenges that affect its growth and sustainability.

• Displacement and Rehabilitation Issues – Mining projects often displace tribal and rural communities, and rehabilitation measures are frequently inadequate.
• Environmental Degradation – Mining leads to deforestation, land degradation, loss of biodiversity, and pollution of water and air resources.
• Illegal and Unscientific Mining – Practices like illegal extraction and unsafe mining methods increase accident risks and revenue losses for the government.
• Health and Safety Concerns – Mining workers face occupational diseases such as silicosis and pneumoconiosis due to exposure to dust and harmful particles.
• Regulatory and Administrative Delays – Slow environmental clearances, complex approval processes, and legal disputes delay mining operations and investments.
• Social Conflicts and Protests – Mining activities often trigger protests due to livelihood loss, cultural disruption, and environmental damage.
• Infrastructure Constraints – Lack of proper transport, logistics, and technology affects efficient mineral extraction and supply chains.
• Corruption and Lack of Transparency – Past irregularities in mining lease allocation have reduced investor confidence in the sector.

Way Forward

• Faster Clearance and Approval Processes – Simplifying environmental and regulatory clearances will help accelerate mining projects and improve resource utilization.
• Strict Implementation of Mining Laws – Strong enforcement of rules and guidelines issued under the Mines and Minerals (Development and Regulation) Act, 1957 is essential to curb illegal and unscientific mining.
• Adoption of Advanced Technology – Use of satellite monitoring, artificial intelligence, and modern exploration techniques can improve efficiency, transparency, and worker safety.
• Transparency in Allocation of Mining Blocks – Auction-based and rule-based allocation of mining leases should be strengthened to reduce corruption and increase investor confidence.
• Sustainable and Environment-Friendly Mining – Proper Environmental Impact Assessment (EIA) and sustainable mining practices must be followed to reduce ecological damage and conserve biodiversity.
• Rehabilitation and Welfare of Displaced Communities – Mining projects must ensure fair compensation, rehabilitation, and protection of tribal and local community rights.
• Effective Utilisation of DMF Funds – Funds should be used for education, healthcare, infrastructure development, and livelihood support in mining-affected areas.
• Strengthening Environmental Monitoring – Guidelines issued by the National Green Tribunal should be implemented effectively to protect forests and ecosystems.
• Improved Safety Standards for Workers – Adoption of global safety practices and modern equipment is necessary to reduce occupational hazards and mining accidents.