By Pralhad Joshi
Building a post-Covid-19 planet demands grit, perseverance and a vision—precisely almost everything that tends to make up Prime Minister Narendra Modi. The planet was taken aback with the pandemic and was struggling to deal with it when our Prime Minister announced the grand vision of a self-reliant India, the AatmaNirbhar Bharat. As the Union Minister of Mines and Coal, I frequently reflect upon my ministry’s contribution to this grand initiative. We have been collecting each day reports down to every single district and possessing detailed deliberations with none other than the Prime Minister himself.
Therefore, when in the course of the launch of auction for industrial mining of coal, on June 18, 2020, PM Modi talked about ending decades of lockdown in coal, the sector was only also prepared to don the new avatar. In the ensuing months, the government galvanised its machinery to remodel the mineral mining sector.
The mining sector is next only to agriculture in terms of creating employment. The sector straight and indirectly employs about 1.1 crore men and women and sustains the livelihood of about 5.5 crore men and women in the nation. One direct job in the sector creates 10 indirect jobs. Similarly, 1% development in mining benefits in a 1.5% development in industrial production. Its value grows manifold when we contemplate other allied sectors that rely on it for their survival and existence. Sectors such as steel, aluminium, industrial automobiles, rail transportation, ports, shipping, energy generation, and so on, are closely linked to the mining sector. Therefore, a increase to the mining sector will increase these sectors as nicely, which, with each other, will brighten the financial horizon of the nation. With a sector possessing such far-reaching significance in generation of employment possibilities, the Modi government envisions growing its contribution from 1.75% of GDP presently to 2.5% of GDP, with an aim to boost the mineral production output by 200% in the next seven years.
The country’s mineral mining sector has remained choked for various decades beneath preceding regimes. Despite large mineral possible, India had so far been underexplored with mining becoming carried out only on .25% of the land, whereas more than 17% of the national land has mineral reserves. The sector had also underperformed in attracting investments. While mineral production stands at Rs 1.25 lakh crore annually, its import is a whopping Rs 2.5 lakh crore.
Unless one is an ostrich with the head buried beneath the sand, it does not take a great deal to gauge the herculean job the nation has accomplished in the final 10 months to give a new path to financial development. Mineral mining is one such sector that has witnessed an array of reforms, with the Mines and Minerals (Development and Regulation) Amendment Act, 2021, being the newest addition to the fore. These reforms will give new ‘LIFE’ to the mining sector, exactly where ‘L’ stands for Long-term influence, ‘I’ for Immediate increase to mineral production, ‘F’ for Focus on public welfare, and ‘E’ for Ease of Doing Business.
We have observed how a significant quantity of mining blocks with pretty higher top quality of sources have been not brought into production for numerous years, resulting in suboptimal utilisation of precious national mineral sources. Most of them have been blocked in legacy situations. Legacy challenges pertaining to mining have turn into an impediment as such situations can neither be granted lease for the reason that the time period to grant them is currently more than, nor can they be brought to auction for the reason that of legal impasse. We have amended the current provision for reallocation of such mineral blocks by way of a transparent auction mechanism. Similarly, auctioned mines not created operational inside 3 years will be returned to the concerned states for reallocation by way of auction and Greenfield mines allocated to PSUs that are not brought into production are also proposed to be reviewed and offered back to state governments for auction. Bringing unused mineral blocks into production will produce huge employment possibilities and bring development to such mining places.
One of the important reforms is transferring all valid rights, approvals, clearances and licences to the new lessee, valid till the mineral reserves final. This would facilitate lessees transfer mine to a further entity, therefore bringing fresh investment and entrepreneurship to operate the mine.
Since 2015, geological reports for 143 mineral blocks have been handed more than to many states. These blocks are auction-prepared, but so far only seven blocks could be auctioned by states. To guarantee that national reserves are place to very best use for the improvement of the nation, provision has been created wherein the central government can conduct auctions in consultation exactly where state governments face challenges or fail to conduct auctions.
Removing the distinction among captive and non-captive mines was extended-coming. We knew it was akin to participating in a race with one leg tied down. With no such distinction now, there will be level-playing for mineral block auctions. Moreover, current captive mines have also been permitted to sell mineral more than and above their specifications, and 50% rebate in the income share, for the quantity of mineral made and dispatched earlier than the scheduled date of production, has been supplied.
This amendment Act is set to redefine the common of exploration essential for auctioning of partially explored mineral blocks for prospecting licence-cum-mining lease. This will increase seamless transition from exploration to production and encourage participation of private players. The amended provisions in the Act also guarantee greater clarity on ‘mining without lawful authority’ to save leaseholders from unjustified penalties beneath other litigations.
We are fulfilling a extended-standing demand by producing regional Members of Parliament a member of the District Mineral Foundation (DMF) Governing Council to make the DMF more outcome-oriented. Arrangements have been created to preserve a verify on misuse of DMF funds so that inclusive improvement of these impacted by mining can be ensured.
There are various other adjustments in the MMDR Act that will increase ease of carrying out enterprise in the mineral mining sector and make it more competitive and productive. The MMDR Amendment Act, 2021, will pave the way for creation of just about 55 lakh employment possibilities along with possessing a multiplier impact on various other sectors. PM Modi has ensured that the mineral mining sector gets to play its actual function of being the foundation of the nation’s economy. Over various meetings he has laid out an envisioned strategy wherein the sector is taking allied industries on a development course to India becoming a $5-trillion economy. I am pleased that these amendments are in line with his vision and I am confident that the sector has a key function to play in defining ourselves as a ‘new India’.
(The author is Union Minister of Coal, Mines & Parliamentary Affairs)