INDIA Law and Practice Contributed by: Vishnu Sudarsan, Kartikeya Gajjala and Mehar Vasant, J Sagar Associates
1. Mining Law: General Framework 1.1 Main Features of the Mining Industry Engine of Economic Growth The mining sector is a core driver of India’s eco - nomic development, contributing significantly to the gross domestic product. It is a major source of employment and a catalyst for growth in other vital industries (such as power, steel and cement) that are, in turn, critical for overall economic growth. As aptly stated in India’s National Mineral Policy, 2019 (NMP): “[m]inerals are a valuable natural resource being the vital raw material for the core sectors of the economy. Exploration, extraction and management of minerals have to be guided by national goals and perspectives, to be inte - grated into the overall strategy of the country’s economic development.” Mineral Resources India is richly endowed with metallic and non- metallic mineral resources – the country produc - es as many as 95 minerals, including four fuel, ten metallic, 23 non-metallic, three atomic and 55 minor minerals. India is largely self-sufficient in minerals that are primary input for industry (such as iron and steel, aluminium, cement, refractories, ceramics, glass) and in bauxite, chromite, limestone, iron ore and sillimanite. The country is deficient in kyanite, magnesite, rock phosphate, manganese ore, etc, which are imported to meet demand. To meet the increas - ing domestic demand for uncut diamonds, emeralds and other precious and semi-precious stones, India is dependent on imports of raw uncut stones for their value-added re-exports. Rare earth resources in India are reported to be the fifth largest in the world. Indian resources
are significantly lean and contain light rare earth elements, while heavy rare earth elements are unavailable in extractable quantities. 13.07 million tonnes of in-situ monazite (containing ~55-60% total rare earth elements oxide) have been found in the states of Kerala, Tamil Nadu, Odisha, Andhra Pradesh, Maharashtra, Gujarat, Jharkhand, West Bengal and Tamil Nadu. Mag - netic rare earth elements such as Neodymium and Praseodymium are available and are being extracted. Major and Minor Minerals The legal and regulatory framework broadly clas - sifies minerals into two categories: • “minor minerals”, which are defined to include building stones, gravel, ordinary clay, ordinary sand and any other minerals so declared by the central government; and • minerals other than minor minerals, which are referred to generally as “major minerals”. Concessions in respect of both major minerals and minor minerals are awarded at the level of the state governments. However, the central government has primacy with regard to the legal and regulatory framework for major minerals, while the regulation of minor minerals is largely left to the state governments. Unless otherwise specifically mentioned, the responses set out herein concern onshore major minerals (other than atomic and fuel minerals, for which the legal and regulatory framework is distinct and separate). Mineral Production Mineral production (excluding atomic and fuel minerals) was valued at INR192,734 crore in FY 2023–24, marking an increase of about 2.03% over the previous year. In FY 2023–24, about
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