INDIA Trends and Developments Contributed by: Anuja Tiwari, Mallika Anand, Aditya Pandey and Aman Raj, AZB & Partners
the state of Jharkhand has led to deforestation, soil erosion and water pollution. Since climate mitigation measures and Sustainability Develop - ment Goals are key factors for international pri - vate and public investors, these investors tend to invest in sectors that fulfil any of the ESG cri - teria. The mining industry in India requires intro - spection to align business practices with ESG According to the Ministry of Mines, illegal min - ing of various major and minor minerals is car - ried out extensively in India due to high demand for these minerals. Illegal mining, particularly in the states of Karnataka and Goa, has depleted resources and caused revenue losses to the government. Over-extraction of resources by licensed agencies is also a key contributor to illegal mining. requirements. Illegal mining To combat these issues, the government has been trying to implement novel methods, such as the deployment of satellites for surveillance. The Indian Bureau of Mines has also formulated standard operating procedures for conduct - ing drone surveys of mines. Further measures include monthly and annual reporting require - ments in relation to the production, utilisation and trade of minerals. The government has also set up state-level task forces to monitor mining activity and conduct effective enforcement of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). The consequences for illegal mining under the MMDR Act have also been bolstered, to reduce non-compliance. Despite these govern - ment initiatives, illegal mining continues to sub - sist and needs to be addressed through stricter enforcement of the regulatory framework.
Modernisation In comparison to international standards, the technology being utilised in the Indian mining industry is dated. The government does not facil - itate the necessary financial support required to modernise mining operations in India. Outdated technology also poses a threat to the health and safety of workers in this industry. In offshore mining, the government has emphasised the promotion of technology-driven solutions for deep-sea mining, with the National Institute of Ocean Technology and other global participants being encouraged to develop environmentally sustainable extraction methods. Exploration Prior to undertaking production activity, an exploration exercise must be undertaken, in order to assess the viability of a mineral block. However, there is a lack of interest among pri - vate participants in undertaking exploration and production, partly due to the lack of framework mandating detailed and general exploration. Separately, in cases where exploration exercises have been undertaken, India has seen low inter - est in recent auctions as only a reconnaissance survey (G4) or preliminary exploration (G3) sur - vey is undertaken in most blocks prior to auc - tion, which does not provide details of the min - eral potential of the blocks explored. To combat this issue, the government has mandated the implementation of at least a general exploration (G2) survey prior to the auctioning of the produc - tion lease of a mining block through a recent
amendment. Infrastructure
The deficiency in the infrastructure ecosystem around mining areas has also resulted in slow - er growth. Roads, railways and ports need to
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