Cement, Energy and Environment

REG{j·LATIONS AND NEED ' I - By Shri Pukhraj Sethiya, Mining Expert, PricewaterhouseCoopers India is a mineral rich country with occurrence of about four fuels, 10 metallic, 46 non– metallic, three atomic, and 23 minor minerals spread across the length and width of the country. India has world's fourth largest coal reserves, the fifth largest iron ore reserves, and significant proportion of reserves of bauxite and several other minerals. Given the large infrastructure deficit the country faces, these resources play a direct role in our economic and social development. Indian mining and mineral sector has recorded a strong growth of 8.29 percent during 2009-10 over the previous year. The growth recorded by the sector in this year is significant over the historical growth , which was modest at about 4 percent over the last five · years. The contribution of mining industry in t~e ~~dia's total GDP has been SJgnJ~Jcant at 2.5 percent with growJng GDP at the rate of ~round 8.5 percent. The mining J~d.ustry, today, values at $28 8 billion in production, of Whi~h coal and iron ore contribute more than 50 percent Th of · e pace growth is expected to accelerate keeping in view the f~ct that the country has SIZeable Potential for . wealth m~neral and demand from tmanufacturing sector continues o expand . Th is expanding nature of economy w'll . . I need Significant growt~ m the mining industry to sustain the growth Percenta However, presently the . ~e . industry h ' m1n1ng as been f . challenges in the d ac1ng f eveloprn o new Proje t ent resistance frorn Ic s due to OCal p Well as several eople as other reason S . This has resulted in a delay in the timely development of a number of the mining projects resulting in the shortage of key minerals, like con al. In this context, it becomes necessary to assess the constraints in the development phase and reasons behind the non-favourability towards mining projects from the locals as well as way forward to sustain the growth of the country, in general and mining industry, in particular. Mining, Minerals Industry in India: Growth Story The gross budgetary support for Indian mineral industry (coal and metallic minerals , including steel) has been increasing each year and has recorded an annual compounded growth rate of around 25 percent. The mining industry has been registering continuous growth, Which indicates the ~xpanding nature of mining Industry and Indian economy in ~eneral. The significant growth Jn t~e mining industry has been registered due to the growing consumption Pattern resulting in the growth of various industries. Tho~gh this growth is still lagging behind the targeted expansion p rogrammes for the industry. Budget Trend Proposed outlay (INR crore) Revised OUtlay (INR crore) Planned 0 (%) utlay FY os FY 06 6244 4828 5631 4255 87% t t 1 coal Currently, the o a t 550 P roduction stands at abou d · t a deman million tonnes agalns es of more than 600 million l~;nfiv~ By the end of the twe t·on is 1 produc J year plan , the coa than 1 . t be more proJected o . . the iron billion tonnes. Similarly, been t . has ore produc 1on growing in the country. · /Industry Growing Mmera facing local resistance d . f coal an The productiOn ° · the . entrated Jn iron ore JS cone 1 d· 1 a i.e. , . of n , I eastern regJon t senga . awes j harkhand Onss · tour ' . These and Chhatt1sgarh. f more nt or states itself accou total coal than 78 percent of the try while production of the count of total 50 Percen J11 more than es fro t . n corn . iron ore produc 10 . Even Jfl f lndJa. t d eastern zone o . expec e the future this tren~ JS ·ng large ns1den ·n to continue , co currin9 1 oc · 5 mineral resource~ alone 1 these states . Onssarnore thanf dd to o expected to a r annum 250 million tonnes pe next feW · the coal production Jn years . bOve. . the a iS Considenng ·ndustrY while the minerals J of the P roviding many parts ·derable . consl iC country With econorTl · · for the opportun1t1es ·allY t specl i e.. developmen , egion. · mineral rich eastern r 11 fY FY 10 FY 07 FY 08 FY 09 6412 19292 z3ao6 10699 15403 NA 6374 10988 12933 18002 96 o;o 90% 94% 95% g5% 2