Lok Sabha Question No. 2923 (UNSTARRED), answered on 2022-08-03
Subject: Industrial Production
Ministry: MINES
Asked by: Dibyendu Adhikari

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 2923 ANSWERED ON 03.08.2022

## INDUSTRIAL PRODUCTION

## 2923.   SHRI DIBYENDU ADHIKARI:

Will the Minister of MINES be pleased to state:

- (a) whether industrial  production  in  the  mining  sector  and  manufacture  of  other non-metallic mineral products for 2020-21 have gone below from the average of 201516 and 2013-14 levels;
- (b) if  so,  whether  in  the  mining  sector,  opportunities  for  mining  and  metal companies  will  continue  to  outweigh  risks  in  2023  due  to  uncertain  demand  and ongoing volatility in a market still impacted by the Covid-19 pandemic and if so, the details thereof;
- (c) whether  the  Government  is  creating  long-term  value  for  all  stakeholders  to secure the future of mining and community engagement; and
- (d)  if so, the details thereof?

## ANSWER

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

- (a): The value of production of minerals under the ambit of Mineral Conservation and Development Rules (MCDR) was Rs. 78,461 crore during the year 2020-21 as against Rs. 44,833 crore, which is the average for the years 2013-14 and 2015-16. Of  the  total  value  of  MCDR  mineral  production,  the  value  of  production  of  nonmetallic minerals was Rs. 8,926 crore during 2020-21 as against Rs. 6,828 crore, which is the average for the years 2013-14 and 2015-16.
- (b) to (d): Since 2015, the Government has been carrying out reforms in the mining sector from time to time, which has created enough opportunities for investment by the  mining  and  metal  companies.  The  Government  amended  the  Mines  and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957) through the MMDR Amendment Act, 2021 with effect from 28.03.2021. The reforms, inter-alia , include the following:
- (i) Removal  of  distinction  between  captive  and  non-captive  mines  by mandating  auction  of  mineral  blocks  without  any  end  use  restriction. Further, existing captive mines have been allowed to sell up to 50 per cent of the minerals produced after meeting the requirement of linked plants and on payment of additional amount to State Government.
- (ii) Provision  has  been  made  for  transfer  of  valid  statutory  clearances  in relation to a mine which is expiring or terminated to the successful bidder of such mine in auction.
- (iii) Restrictions on transfer of mineral concessions for non-auctioned mines have been removed.
- (iv) Private exploration agencies which have been accredited are allowed to carry  out  exploration  without  prospecting  licence  upon  their  notification. These agencies have also been made eligible for obtaining funding under National Mineral Exploration Trust (NMET).

The objectives of the MMDR Amendment Act, 2021, inter alia , are increasing mineral production and time bound operationalization of mines, increasing employment and investment in the mining sector, maintaining continuity in mining operations after change of lessee and increasing the pace of exploration and auction of mineral resources. These reforms, while leading to long-term value realization from mining of various mineral resources, will help mining and metal companies outweigh risk, if any, in 2023.

In  addition  to  the  above  reforms, several  other  policy initiatives  have  been taken up by the Government to promote 'Ease of Doing Business', expedite auction of mineral blocks and increase the pace of exploration of minerals. These reforms include simplification of exploration norms for auction of mineral blocks; enabling any person to submit a proposal to the State Government for notification of an area for auction of composite license; providing incentive for production and dispatch earlier than  the  scheduled  date  of  commencement  of  production;  cap  on  net  worth requirement  for  participating  in  auction  of  mining  lease  and  composite  license; decriminalization of offences of minor nature; and allowing global positioning system (GPS) for identification and demarcation of the area where a composite licence is proposed to be granted through auction.

Earlier, amendment in the MMDR Act in 2015 had provided for establishment of District Mineral Foundation (DMF) by State Government in any district affected by mining related operations, to take care of people and areas affected by mining related activities. DMFs have been established in 622 districts in 23 States. Till May 2022, Rs. 63,845.52 crore have been collected under DMF of which Rs. 32,939.94 crore have been spent on designated high priority/ other priority areas.

As a result of the above reforms, the Government has created long-term value for all stakeholders to secure the future of mining as well as community engagement.

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