Lok Sabha Question No. 300 (STARRED), answered on 2022-03-23
Subject: Economic Potential of Mining Sector
Ministry: MINES
Asked by: Anil Firojiya

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## STARRED QUESTION NO. 300 ANSWERED ON 23.03.2022

## ECONOMIC POTENTIAL OF MINING SECTOR

†*300. SHRI ANIL FIROJIYA:

Will the Minister of MINES be pleased to state:

(a) whether arrangements have been made for any major improvement to showcase the economic potential of the mining sector;

(b) if so, the details thereof; and

(c)  the  manner  in  which  private  innovation  agencies  are  working  towards  increasing employment opportunities in this sector along with the details thereof?

## ANSWER

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

(a) to (c): A Statement is laid on the Table of the House.

****

## STATEMENT REFERRED IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. 300 FOR ANSWER ON 23.03.2022 RAISED BY SHRI ANIL FIROJIYA REGARDING ECONOMIC POTENTIAL OF MINING SECTOR

(a) & (b): In order to showcase the economic potential of the mining sector, significant reforms  have  been  implemented  through  amendment  in  the  Mines  and  Minerals (Development and Regulation) (MMDR) Act, 1957, in the years 2015 and 2021. The amendment  in  2015, inter-alia ,  provides  for  auction  process  in  the  grant  of  mineral concession to private companies and for setting up of the National Mineral Exploration Trust (NMET) to give impetus to exploration activities. The amendment to the MMDR Act in  2021, inter-alia ,  provides  for  removal  of  distinction  between  captive  and  merchant mines, seamless composite exploration-cum-mining licence regime, notification of private entities for conducting exploration, transfer of clearances to new lessees, etc. Further, emphasis is being given on simplification of exploration norms and auction process, and preparing mineral blocks for auction.

As part of the measures for Atma Nirbhar Bharat announced on 16.05.2020, it was outlined that 500 mining blocks would be offered through an open and transparent auction process.  From  March  2015  till  date,  146  mineral  blocks  have  been  successfully auctioned by the States, including 38 blocks auctioned so far in 2021-22. At present, 95 more mineral blocks are in the process of auction.

The details  of  increase  in  the  value  of  mineral  production,  geological  reports handed over to States and funding under NMET are given in Annexure.

(c): Private  companies  are  being  involved  in  all  aspects  of  mining  sector  i.e. exploration,  mining  operations  and  monitoring  of  mining  activities.  A  scheme  for accreditation of private exploration agencies has been notified and till date, seven such agencies have been accredited out of which one agency has been notified under Section 4(1) of the MMDR Act. The private agencies are participating in auction of mineral blocks for grant of mining lease as well as composite license. The Mineral Conservation and Development Rules (MCDR), 2017 have been recently modified to prescribe submission of drone images by mining lease holders every year. The drone surveys of mines will be conducted  mostly  by  private  agencies.  Increasing  involvement  of  private  agencies  in various  aspects  of  the  mining  sector  has  led  to  growth  of  the  sector  and  increasing employment opportunities in this sector.

- *****

## Annexure

ANNEXURE REFERRED IN REPLY TO LOK SABHA STARRED QUESTION NO. 300 FOR  ANSWER  ON  23.03.2022  RAISED  BY  SHRI  ANIL  FIROJIYA REGARDING ECONOMIC POTENTIAL OF MINING SECTOR

## Economic potential

-  The increase in the value of production of minerals (excluding petroleum & natural gas, coal & lignite and minor minerals) from Rs. 44,560 crores in 2014-15 to Rs. 78,474 crores in 2020-21 at a compound annual growth rate (CAGR) of 9.9 per cent, and further to Rs. 94,328 crores in the period April - December 2021-22 showcases  the  unlocking  of  economic  potential  of  the  mineral  sector  due  to reforms undertaken.

## Geological reports

## From March 2015 - March 2021

-  144 G3/G2 reports of GSI handed over to States.
-  44 G3/G2 reports of MECL handed over to States.

## From April 2021 - so far

-  16 G3/G2 reports of GSI handed over to States.

Moreover,  GSI  has  submitted  152  G4  information  memoranda  to  States  for auctioning as composite license.

-  10 G3/G2 reports of MECL handed over to States.

## Funding under NMET

-  Since 2015-16 up to February 2022, 219 projects for a total sanctioned amount of Rs. 1,661 crores approved.
-  Expenditure of Rs. 421 crores incurred up to February 2022.

****