The Planning Commission has convened a high-level meeting of the ministries concerned on Thursday to discuss the issues related to mining, including the ban on such activities in some states, to boost the output.

A high-level meeting of the ministries concerned is scheduled on November 7 to discuss the issues related to mining sector, a source said.

Planning Minister Rajeev Shukla had earlier said that a meeting of the secretaries of ministries concerned has been called to deliberate the issues related to mining sector, particularly the ban on such activities in some states.

According to the minister, representatives from the Department of Land Resources under the Ministry of Rural Development, and those from the ministries of environment & forest, and mines will participate in the meeting.

Decline in production

According to the government latest industrial production data, mining output contracted by 3.4 per cent in April-August compared to a dip of 1.8 per cent in the same period in 2012-13.

In August, the mining production contracted by 0.2 per cent compared to a decline of 0.3 per cent in the same month last year.

Ban on mining

The decline in production is mainly attributed to the ban on mining in the mineral-rich states of Karnataka and Goa. The ban in Karnataka was partially lifted in April this year, while Goa miners hope the ban to be lifted soon.

According to national accounts data, mining and quarrying output is projected to come down to Rs 25,568 crore at factor cost (2004-05 prices) in value terms this fiscal from Rs 26,302 crore in 2012-13.

The government’s provisional data reveals that the output contracted by 2.8 per cent in the first quarter (April-June) this year compared to a growth of 0.4 per cent in the same period last year.

Following the ban on iron ore mining in Karnataka in July 2011 and in Goa in September last year, India has gradually lost its place in the export market.

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