Page 18 - Mines and Minerals Reporter eMagazine - Volume October 2021

INDUSTRY ANALYSIS

HARNESSING MINING SECTOR

Mr. Mahendra Goenka
(Managing Director)
Geomin Industries PVT. LTD.

ining projects arc most vital
towards realizing 'Make-in-In-
Mdia'. It has a multiplier effect,
being the raw material provider for
the downstream industry, as well as
its absence can severely constrict the
dependent industries. They have huge
employment potential, only second to
agri- sector and contribute immensely
to the development of the backward
districts.

LOST OPPORTUNITIES & PERSISTENT RBI KLEN1S data base shows a fall from 0.26 crores in 2004 to
DECLINE IN MINING SECTOR 0.20 crores in 2017
ii) Decline in Avg. Daily employment per figures in mines of
1. Proven Reserves for reaching selfsufficiency in most miner- Indian Mineral Yearbook (IMY), published by Indian Bureau
als — despite that massive imports of minerals of Mines (IBM) from 5.4 lakh in 2012-13 to 4.8 lakh in 2016-
2. Huge Trade Deficit in Mineral Sector (even without consid- 17. The data for the following years, unofficially learnt though
ering oil sector) - more than 6.5 lakh Cr., which is 50% of the not published by IBM, shows even steeper decline in employ-
India's Total Trade Deficit. ment in the mining sector, despite major legislative reforms
i. The Key imports were — Diamond - 1.5 lakh Cr, Gold - 2 lakh in 2015.
Cr, Iron & Steel 70 thousand Cr Aluminum & Copper at 25 thou
sand Cr each. Net Decrease in Mining Leases
ii. Even when the country has proven reserves for many miner-
als like bauxite, chromite, limestone, iron ore, kyanite etc., in i) About 500 major mineral mining leases used to get added
many specific instances, India needs to import certain types/ annually around 2011-12 in the country.
quality of minerals and Ferro-alloys etc. ii) As per the IMY-2019, there has been anet decrease of 300
iii. Despite enormous potential in India, no Gold & Diamond mining leases in2018-19 for the major minerals in thecountry.
efforts supported by Govt., thus no incremental mining and iii) This is truly reflective of the actual resultof the propped up
not enough grant of mining leases for them in the last 10 reforms in 2015.
years.
iv. The Federation of Indian Mineral Industries (FIM1) has put Dismal growth in Mineral Production
the onus on the government for the poor record in meeting
domestic demand as mineral. India's mining sector has accounted for 3.5% of the national
Gross Value Added over the period 2004-05 to 2019-20. How-
Lost Employment potential ever, the contribution to national output has been declining in
recent years, as the mining sector has grown at a slower pace
i) Steep Decline employment in Mining and Quarrying from than other sectors. Though growth has been volatile on

16 MINES & MINERALS REPORTER / OCTOBER 2021