How To Improve The Condition Of India’s Mining Sector?

How To Improve The Condition Of India’s Mining Sector?

It is not unknown to everyone that India’s mining sector has a great potential to eliminate the dearth of jobs in India. In fact, if it is developed properly, it can give jobs to about 6 million people, thus reducing poverty to a great extent. At present, India requires near about 150 million non-farm jobs by 2025 to eradicate poverty completely. And, the mining sector is one among the targeted areas where this development can be made possible. However, it is a long way to go. There is a lot to plan and more to do. In this post, we are going to discuss the present scenario, the challenges and the consequent steps to meet those steps effectively.

The Challenges Faced By The Indian Mining Sector If you compare the GDP contribution of India’s mining sector to that of other nations like the USA, China, Chile, Australia, and Brazil, you will notice that the former is lower than the latter. This is because the industry has not seen much growth in the recent years.

Why? Let us get down to that: Lack In Exploration Activities The Geological Survey of India should generate baseline data to promote exploration activity. But, in India, this has not been completed yet. Furthermore, the Aeromagnetic survey covers only 18% of the total area, a big contrast to the 90% in Australia.

What should be done?

To amend this situation, GSI should increase baseline data generation to stimulate exploration activities by all mining companies, big and small.

Low Exploration Budget India accounts for a meager amount of 0.4% of the world’s total exploration budget. This is another big reason why the mining industry is lagging behind than other countries. Moreover, only about 11 companies in the nation have taken any initiative toward exploration activities.

What should be done?

The country has to increase its exploration budget to stay at par with the global economies.

Delay In Approvals The land/forest clearance approvals take a lot of time due to process inefficiencies. The lack of proper land records, multiple layers of approval and, the lack of well-defined timelines contribute toward this delay.

What should be done?

The governing agencies should take necessary steps to speed up the approval process.

Long Lease Processing Periods it takes as long as 5 years to obtain mining leases in India. This is pretty high as compared to that of the other countries. For example, both in Canada and Australia, it takes about two months or less to process a mining lease permit. Furthermore, most of the countries have been decreasing their processing periods to improve the situation.

What should be done?

Introduction of the electronic platform can speed up the process to a great extent.

The aforementioned scenarios are just a few of the complete set of problems faced by the mining industry in India. Today, a new mining company in Barbil or anywhere else in the country should be open to innovation and technological advancements in order to make way for overall improvement.

Exploration should be on the top of its priority list. No stone should be left unturned to ensure 100% efficiency. With new hopes, an open mindset and significant help from the Government, India can improve its mining sector and contribute toward economic development.

Source: https://naaraayaniminerals.wordpress.com/2017/07/11/how-to-improve-the-condition-ofindias-mining-sector/ M/S Naaraayani Minerals Website: http://www.naaraayani.com/ E-mail: info@naaraayani.com Phone No: +91-6767-276511 / +91-983-0702774