Lok Sabha Question No. 508 (UNSTARRED), answered on 2020-09-16
Subject: Contribution of Mining Sector in GDP
Ministry: MINES
Asked by: Amar Singh, Manish Tewari, Dinesh Chandra Yadav, Vincent H Pala, Annpurna Devi

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO- 508 ANSWERED ON 16.09.2020

## CONTRIBUTION OF MINING SECTOR IN GDP

508. DR. AMAR SINGH:

Will the Minister of MINES be pleased to state:

- a. Whether the mining sector contributes about 3 per cent to GDP and the sector's contribution to GDP should more than double for the country to reach a doubledigit growth rate and if so, the steps taken/to be taken by the Government in this direction;
- b. Whether mining provides great economic opportunities for resource-rich countries, the process of mining creates challenges  and risks for the well-being of people and the environment and if so, the measures taken/being taken by the Government  to  manage  mining  in  a  way  that  contributes  to  and  does  not jeopardize sustainable development; and
- c.  Whether  the  management  of  mining  at  all  stages,  from  exploration  to mine closure, requires serious consideration of social and environmental impacts, and if so, the steps taken/being taken by the Government in this regard?

## ANSWER

## THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

- (a):  The  share  of  mining  &  quarrying  sector  in  the  gross  value  added  (GVA)  was around  2.7%  in  2019-20  (provisional  estimates)  as  per  Ministry  of  Statistics  and Programme Implementation, Press Release dated 29 th May,  2020.  Minerals  are  a valuable  natural  resource  that  are vital  raw  material  for  the  core  sectors  of  the economy.  To  achieve  higher  growth  rate,  contribution  of  mining  sector  has  to increase.  Important  steps  taken  by  the  Government  to  increase  contribution  of mining sector are:
- i.    the  Mines and Mineral (Development and Regulation) Act, 1957 [MMDR Act] was  amended  in  2015  and  inter-alia, e-auctions for the grant of mineral concession  to  ensure  transparent  process  of  allotment  of  mineral  blocks  was introduced. National Mineral Exploration Trust (NMET) has been set up to carry out regional and detailed exploration for minerals.

ii.  the  National  Mineral  Policy  2019  issued  in  February  2019  which  envisages, inter-alia,  that  exploration,  extraction  and  management  of  minerals  have  to  be guided  by  national  goals  and  perspectives,  to  be  integrated  into  the  overall strategy of the country's economic development;

iii.  the  MMDR  Act  was  amended  in  January  2020  for  transfer  of  clearances  to successful bidders upto a period of two years;

iv. Ministry of  Mines  has  issued guidelines on 03.06.2020  regarding  preembedded clearances.

v. further, in order to make India Atmanirbhar, major policy decisions have been taken,  viz  introduction  of  a  seamless  composite  exploration-cum-mining-cumproduction regime to boost private sector participation specially in exploration; 500 mining blocks would be offered through an open and transparent auction process; joint  Auction  of  Bauxite  and  Coal  mineral  blocks;  remove  distinction  between captive and non-captive mines; formulate Mineral Index for different minerals.

vi.  to  expedite  the  process  of  Environmental  Clearance(EC),  the  Ministry  of Environment, Forest and Climate Change (MoEFCC)  has issued Standard Term of Reference  (ToR)  and  Standard  EC  Conditions,  which  help  the project proponent to begin the preparation of the EIA/EMP Report (Environmental Impact Assessment and Environmental Management Plan) even before applying for ToR. The process of grant of EC has been decentralized by allowing mining lease up to 100 Ha to be appraised at the State Level itself, which was previously 50 Ha. To make  the  application  process  simpler,  MoEFCC  has  developed  online  portal `PARIVESH' through which project proponent can apply for various clearances.

(b)      India is blessed with mineral resources, which provides opportunities to meet country's need and to become self-sufficient. Extraction of mineral resources impacts forests, environment and ecology. The National Mineral Policy 2019 has emphasized sustainable  development  in  mining  sector.  Environmental,  economic  and  social considerations  must  be  taken  into  account  as  early  as  possible  in  the  decisionmaking  process,  to  ensure  sustainable  development  in  the  mining  sector  which envisions mining as financially viable; socially responsible; environmentally, technically  and  scientifically  sound;  with  a  long  term  view  of  development;  uses mineral resources optimally; and, ensures sustainable post-closure land uses.

MOEFCC has been continuously updating its policies so as to make the clearance process simpler and faster and at the same time improving the quality of appraisal and stipulating the specific conditions for any mining operation in the country so as to minimize and mitigate the social and environmental impact of the mining.

(c)    The MMDR Amendment Act, 2015 mandated the setting up of District Mineral Foundation  (DMFs)  in  districts  for  the  interest  and  benefits  of  persons  and  areas affected by mining related operations. DMF has been set up in 574 districts. Further, the   Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is to be implemented by  the  DMF  of  the  respective  district  using  the  funds  accruing  to  the  DMF.   The Government  has  launched  a  Scheme  of  Star  Rating  of  Mines/mining  leases  for implementation of Sustainable Development Framework (SDF).

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