Last month, India auctioned its first-ever Potash block, with an aim to cut import dependence on agriculture fertilizers and thereby ensure our nation’s food security. Such is the potential of our vast mineral wealth; it touches each and every nerve of a progressing nation. To realise the prospects available holistically, the past decade has witnessed an era of unprecedented reforms, marked by transparency, efficiency, and ambition. These tangible efforts are paving the way for transforming our mining sector at par with global standards.
The first step towards this goal was to rid the sector from outdated policies, iron curtains blocking us from leveraging the entrepreneurial spirit of the private enterprise. The byzantine, opaque allocation system of the past has been replaced by a fair and transparent auction process.
Today, since the introduction of the auction regime, over 500 mineral blocks have been auctioned to date and 119 have been auctioned just in the last year alone. The amendments carried out in the Mines and Minerals Development and Regulation Act (MMDRA) between 2015 and 2023 have laid the foundation for a dynamic and globally competitive mining sector.
More changes are in the offing as the MMRDA drives our foray into critical minerals that aim to provide for the trinity of our national, energy, and food security.
Augmenting state capacity with the agility of the private sector
State capacity has been augmented with the risk taking capabilities and agility of the private sector as they have emerged as an equal partner in this journey. Be it the uniform 50-year leases, removal of renewal bottlenecks, seamless transfer of clearances or the introduction of an exploration licence regime that has created space for the MSMEs and opportunities for the start-ups to scale, the past distrust with India’s entrepreneurs has been replaced with an enabling environment for them to flourish.
The unprecedented financial thrust through the National Mineral Exploration Trust, democratic access to more than 12,000 geological reports on the National Geoscience Data Repository, drone surveys, Mining Tenement System, and faceless return filings, all have brought predictability and investor confidence to the sector.
Now, with the launch of the National Critical Mineral Mission (NCMM) India is set to carve a space in the global critical minerals race. A thriving circular economy around critical minerals like Lithium, Cobalt, Nickel, Rare Earth Elements etc will prove to be the shot in the arm for almost every sector essential for Viksit Bharat – from accelerating development of clean energy tech and achieving net-zero emissions by 2070, to advancing defence and space tech, strengthening electronics, communications and advanced manufacturing and even transforming infrastructure and agriculture. The impact will be widespread and lasting.
India’s first ever entry into offshore mineral mining also positions us as a key player in global resource chain. With lithium mines acquired in Argentina and KABIL pursuing assets worldwide, we are expanding our strategic resource base and further strengthening our mission objectives.
The success of the efforts squarely rests on greater collaboration with the private sector who realise the hidden potential in the meteoric rise of India’s mining sector. We need a brigade of ‘GeoPreneurs’ who are innovators and investors that venture into exploration, recycling, green mining technologies, and global value chains, making India a mineral hub of the future.
Unleashing the power of Cooperative Federalism
Another turning point in the last 11 years has been the strengthening of cooperative federalism in the mining sector, driven by reforms that have deepened Centre-State collaboration improving governance across the mining sector. Through the auction system, States have earned a revenue of around ₹4 lakh crore through auction premiums and royalty.
Parallelly, Centre-State collaboration is at its strongest ever with regular high-level dialogues, mining minister conclaves, and initiatives like the State Mining Index and State Mineral Exploration Trust.
Similarly, the successful implementation of Prime Minister Narendra Modi’s visionary initiative, the District Mineral Foundation (DMF) Trusts, relies heavily on close coordination with and proactive efforts by State administrations.
With DMFs now operational in every mining district, funds are being channelled into local healthcare, education, skill development, and infrastructure, empowering local communities. The Centre is handholding State administrations for auctions, monitoring, and adopt technology.
A roadmap for the future
India’s mining sector today stands at a defining crossroads. On one hand, we have a sea of opportunities ahead of us and at the same time there is a pressing need to continuously upgrade our domestic mining ecosystem.
To realise the vision of Viksit Bharat and rise to the expectations of the global mining community, we must push the boundaries of innovation, sustainability, and efficiency in every facet of mining.
First and foremost, we are working on a mission mode to expedite operationalization of mines by reducing the time taken at every stage right from mining lease to approvals to operationalization.
The Ministry of Mines is actively handholding industry partners throughout their journey.
Another pressing priority is the development of a robust local ecosystem for technology advancement and research and development in the mining sector. To this end, Centres of Excellence focused on research on critical minerals and recycling are being established.
For the first time in the 62-year history of modern mining, start-ups have been funded for ensuring R&D in exploration and mineral processing. A strong indigenous ecosystem will also insulate us to changing geopolitical dynamics and truly make India Atmanirbhar in the mining sector.
Commercial Coal mining began in India in 1774 at the Raniganj Coalfields in West Bengal and two centuries later, the nationalisation of coal mines took place. However, it wasn’t until the 2000s that we began formally discussing mine closure and came out with the first Mine Closure Guidelines.
Sustainability being a key priority, every effort is being taken to reduce the carbon footprint of mining sector from greater reliance on underground mining, strict focus on afforestation and restoration of mined out land and the use of digital technologies to improve operational efficiencies.
India’s ‘just transition’ includes a renewed effort to de-grey the sector and adopt a multi-dimensional economic model which preserves social infrastructure, enables reskilling, and unlocks new livelihood opportunities.
Ancient India had earned the moniker soney ki chidiya for its fertile lands, rich culture, and vast mineral wealth. Chanakya’s Arthashastra elaborately covered mineral wealth and its management.
Today, as we march towards Viksit Bharat, we are reclaiming that legacy. As we have become world’s fourth largest economy and gearing to achieve the third spot, a modern, sustainable mining ecosystem will power the industries of the future and place India firmly on the global economic map.
We owe it to our future generations to unearth the wealth beneath us and grow it with wisdom, vision, and purpose for a truly Viksit Bharat.
The writer is Union Minister of Coal and Mines and serves the Secunderabad Lok Sabha constituency