Lok Sabha Question No. 2654 (UNSTARRED), answered on 2021-03-10
Subject: Privatisation of Mining Sector
Ministry: MINES
Asked by: Balubhau (Alias Suresh Narayan) Dhanorkar

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2654

ANSWERED ON 10.03.2021

## PRIVATISATION OF MINING SECTOR

2654. SHRI BALUBHAU ALIAS SURESH NARAYAN DHANOKKAR:

Will the Minister of MINES be pleased to state:

- (a) whether Government is going to privatise the mining sector of the country;
- (b) if so, the details thereof and the reasons therefor;
- (c) the number of Public Sector Undertakings (PSUs) and their performance report for the last five years and the status of private players in the country; and
- (d) the details of proposal of the Government to modernise the mining technology, safety,  growth and reformation plans by amending the National Mineral Policy, 2019?

## ANSWER

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

(a) & (b): Section 5 of the MMDR Act, 1957 provides for grant of mineral concessions to  an  Indian  national  or  a  company  as  defined  in  the  Companies  Act,  2013.  The mining leases are granted through e-auction. Therefore, private players are actively involved in mining sector.

(c):  The  performance  report  of  NALCO,  HCL  and  MECL,  three  Public  Sector Undertaking under the administrative control of Ministry of Mines in the last 5 years are as under:

## 1. NALCO

| Parameter                     | Unit       | Yearly achievement   | Yearly achievement   | Yearly achievement   | Yearly achievement   | Yearly achievement   |
|-------------------------------|------------|----------------------|----------------------|----------------------|----------------------|----------------------|
|                               |            | 2015-16              | 2016-17              | 2017-18              | 2018-19              | 2019-20              |
| Production                    |            |                      |                      |                      |                      |                      |
| Production of Alumina Hydrate | Lakh tonne | 19.53                | 21.00                | 21.06                | 21.53                | 21.61                |
| Production of Aluminium       | Lakh tonne | 3.72                 | 3.87                 | 4.26                 | 4.40                 | 4.18                 |
| Financials                    |            |                      |                      |                      |                      |                      |
| Revenue from Operation (Net)  | Rs. Crore  | 6,816                | 7,555.51             | 9,489.34             | 11,499.32            | 8,471.84             |
| PAT                           | Rs. Crore  | 731                  | 668.53               | 1,342.41             | 1,732.40             | 138.23               |

2.  Hindustan Copper Limited (HCL)
3. MECL

| Parameter                | Unit         | Yearly achievement   | Yearly achievement   | Yearly achievement   | Yearly achievement   | Yearly achievement   |
|--------------------------|--------------|----------------------|----------------------|----------------------|----------------------|----------------------|
|                          |              | 2015-16              | 2016-17              | 2017-18              | 2018-19              | 2019-20              |
| Production               |              |                      |                      |                      |                      |                      |
| Production of Copper Ore | In Tonnes    | 39,07,636            | 38,45,225            | 36,74,850            | 41,22,804            | 39,67,594            |
| Production of MIC        | In Tonnes    | 31578                | 30587                | 31794                | 32439                | 26503                |
| Financials               |              |                      |                      |                      |                      |                      |
| Revenue                  | Rs. in Crore | 968.76               | 1220.40              | 1719.68              | 1,816.25             | 831.85               |
| PAT                      | Rs in Crore  | 43.56                | 61.94                | 79.6                 | 145.51               | -569.35              |

| Parameter     | Unit            | Yearly achievement   | Yearly achievement   | Yearly achievement   | Yearly achievement   | Yearly achievement   |
|---------------|-----------------|----------------------|----------------------|----------------------|----------------------|----------------------|
|               |                 | 2015-16              | 2016-17              | 2017-18              | 2018-19              | 2019-20              |
| Exploration   |                 |                      |                      |                      |                      |                      |
| Drilling      | Mtrs.           | 4,02,488             | 5,19,466             | 6,32,115             | 6,10,953             | 6,38,801             |
| Financials    |                 |                      |                      |                      |                      |                      |
| Gross Revenue | (Rs. in crores) | 282.60               | 364.74               | 385.51               | 378.49               | 447.03               |
| PAT           | (Rs. in crores) | 76.76                | 104.86               | 97.48                | 100.61               | 146.13               |

However,  performance  of  private  players  in  the  country  is  not  maintained centrally. (d):  The  Ministry  is  implementing  Star  rating  of  Mines  to  encourage  modernization through emphasis on sustainable mining. There is no proposal at present to amend

National Mineral Policy, 2019.

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