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Introduction

Mining is a key driver of India’s industrial growth and a cornerstone of the Atmanirbhar Bharat initiative, providing essential raw materials for infrastructure, energy, and manufacturing. However, boosting domestic mining faces environmental, social, and institutional challenges, necessitating targeted policy reforms to ensure sustainable and inclusive development.

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Policy Reforms Needed to unlock India’s mining potential

• Modernization of Mineral Exploration: Enhance geological surveys and use advanced technologies for efficient resource identification.
  Eg: National Geophysical Research Institute’s adoption of geospatial mapping to locate critical minerals.
• Transparent Auctioning and Licensing: Streamline auctions to attract private investment under the MMDR Amendment Act, 2021.
  Eg: Successful e-auction of iron ore and bauxite mines in Odisha and Karnataka.
• Technology Adoption for Efficiency: Encourage mechanized mining and automation to reduce environmental impact and increase output.
  Eg: Vedanta’s mechanized operations in Jharsuguda reduce land degradation and improve safety.
• Regulatory Simplification: Introduce single-window clearances for environment, forest, and mining permits to reduce delays.
  Eg: Ministry of Mines’ Ease of Doing Business initiatives cut project approval timelines.
• Promotion of Private Sector Participation: Encourage private investment through incentives, public-private partnerships, and simplified export-import procedures.
  Eg: JSW Steel’s captive iron ore mines in Karnataka under PPP model.

Challenges in Implementing Policy Reforms

• Environmental Degradation: Mining impacts forests, water resources, and biodiversity.
  Eg: Bauxite mining in Niyamgiri Hills threatened the Dongria Kondh tribal ecosystem.
• Social and Tribal Displacement: Expansion often displaces local communities, creating conflict.
  Eg: Sterlite Copper project protests in Tamil Nadu highlighted local opposition to mining projects.
• Regulatory and Legal Hurdles: Complex overlapping laws delay approvals.
  Eg: Supreme Court stay on iron ore mining in Goa due to environmental violations.
• Skilled Workforce Deficit: Mechanized mining and technology adoption require trained personnel.
  Eg: Lack of certified geologists and mining engineers delays project execution in Odisha and Chhattisgarh.
• Financial and Investment Risks: High capital costs and fluctuating commodity prices deter private investors.
  Eg: Many small-scale mines in Madhya Pradesh remain underutilized due to market volatility.
  

Way Forward

• Sustainable Mining Practices: Mandate environmental management plans, progressive mine closure, and land reclamation.
  Eg: Hindalco’s green belt development around its mining operations in Odisha.
• Inclusive Development: Engage local communities through Corporate Social Responsibility (CSR) and benefit-sharing.
  Eg: Vedanta’s tribal welfare programs in Jharsuguda ensure education and livelihood support.
• Capacity Building and Skill Development: Establish training institutes and vocational programs for mining engineers and technicians.
  Eg: National Institute of Rock Mechanics (NIRM) offers specialized courses in mining technology.
• Technology-driven Efficiency and Innovation: Encourage automation, AI-based monitoring, and waste management technologies.
  Eg: Tata Steel’s smart mining in Jamshedpur improves ore recovery while minimizing environmental impact.
  

Conclusion

Boosting domestic mining is vital for Atmanirbhar Bharat, but environmental, social, and institutional challenges must be addressed. Targeted policy reforms, sustainable practices, community engagement, technology adoption, and regulatory streamlining can unlock India’s mining potential while ensuring inclusive and responsible development, balancing economic growth with ecological and social safeguards.

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