UPSC MainsGEOLOGY-PAPER-II201610 Marks
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Q24.

Discuss briefly the 'National Mineral Policy'.

How to Approach

This question requires a comprehensive overview of the National Mineral Policy (NMP). The answer should begin by defining the policy's objectives and evolution. It should then detail the key features of the current NMP (2019), focusing on aspects like reconnaissance permit, auction of mineral blocks, sustainability, and the role of technology. A structured approach, dividing the policy into its core components, will be effective. Mentioning the shortcomings and challenges in implementation is also crucial.

Model Answer

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Introduction

The National Mineral Policy (NMP) serves as a guiding framework for the sustainable development and management of the mineral resources of India. Recognizing the crucial role minerals play in economic growth, the policy aims to balance the need for resource extraction with environmental protection and socio-economic benefits for local communities. The first NMP was formulated in 1993, and subsequently revised in 2008. The current NMP, approved in 2019, builds upon these earlier iterations, addressing emerging challenges and incorporating best practices in the global mining sector. It aims to foster a more transparent, efficient, and sustainable mineral sector.

Evolution of National Mineral Policy

The journey of India’s mineral policy reflects a shift from a largely regulatory approach to a more facilitative and growth-oriented one. The 1993 policy focused on deregulation and attracting private investment. The 2008 policy emphasized sustainable development and the role of state governments. The 2019 policy represents a further evolution, prioritizing ‘first exploration, then mining’ and promoting responsible mining practices.

Key Features of the National Mineral Policy 2019

1. Reconnaissance Permit (RP)

A key feature is the introduction of the Reconnaissance Permit (RP) to encourage private sector participation in exploration. The RP allows exploration over a larger area for a longer duration, reducing the risk for exploration companies. This is intended to increase the pace of mineral discovery.

2. Auction of Mineral Blocks

The policy promotes the auction of mineral blocks through a transparent and competitive bidding process. This is facilitated by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), as amended in 2015 and 2020. The aim is to ensure optimal revenue generation for the state governments and promote efficient mining operations.

3. Role of State Governments

The NMP recognizes the crucial role of state governments in mineral governance. It emphasizes the need for states to streamline regulatory processes, provide necessary infrastructure, and ensure effective enforcement of environmental regulations.

4. Sustainability and Environmental Protection

The policy stresses the importance of sustainable mining practices, including minimizing environmental impacts, restoring mined-out areas, and promoting responsible waste management. It encourages the adoption of best available technologies for environmental protection.

5. Technology Adoption & Innovation

The NMP promotes the use of technology in all aspects of the mineral sector, from exploration to mining to processing. This includes the use of remote sensing, GIS, and data analytics to improve efficiency and reduce costs. It also encourages research and development in mineral processing and beneficiation.

6. Mineral Security

The policy recognizes the importance of mineral security for India’s economic development. It aims to reduce import dependence on critical minerals and promote domestic production. This is particularly important for minerals used in strategic industries like defense and renewable energy.

7. Addressing Illegal Mining

The NMP emphasizes the need to curb illegal mining through stricter enforcement, monitoring, and the use of technology. It also promotes the regularization of illegal mining operations where feasible.

Challenges in Implementation

  • Land Acquisition: Acquiring land for mining projects remains a significant challenge due to social and environmental concerns.
  • Forest Clearances: Obtaining forest clearances can be a lengthy and complex process, delaying mining projects.
  • Infrastructure Deficiencies: Lack of adequate infrastructure, such as roads, railways, and power supply, can hinder mining operations.
  • Local Community Concerns: Addressing the concerns of local communities regarding displacement, environmental impacts, and benefit sharing is crucial for successful implementation.
  • Coordination Issues: Effective coordination between the central and state governments is essential for implementing the policy effectively.

Impact of the Policy

The NMP 2019 has led to increased exploration activity and a greater number of mineral blocks being put up for auction. However, the full impact of the policy is yet to be realized, and sustained efforts are needed to address the challenges and ensure its effective implementation.

Conclusion

The National Mineral Policy 2019 represents a significant step towards creating a more sustainable, efficient, and transparent mineral sector in India. While the policy addresses many critical issues, its success hinges on effective implementation, strong coordination between stakeholders, and a commitment to responsible mining practices. Addressing the challenges related to land acquisition, forest clearances, and local community concerns will be crucial for unlocking the full potential of India’s mineral resources and ensuring long-term economic growth.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Reconnaissance Permit (RP)
A permit granted for preliminary prospecting of mineral resources over a defined area, allowing exploration activities like geological mapping and remote sensing.
Mineral Security
The availability of a stable and reliable supply of minerals to meet a nation’s economic and strategic needs, reducing dependence on imports.

Key Statistics

India possesses 397 identified mineral resources, with significant reserves of coal, iron ore, bauxite, chromite, manganese, and limestone. (Source: Ministry of Mines, Annual Report 2022-23 - Knowledge Cutoff)

Source: Ministry of Mines, Annual Report 2022-23

India imports over 80% of its cobalt requirements, a critical mineral used in lithium-ion batteries. (Source: NITI Aayog Report on Critical Minerals - Knowledge Cutoff)

Source: NITI Aayog Report on Critical Minerals

Examples

Auction of Iron Ore Blocks in Odisha

The auction of iron ore blocks in Odisha under the NMP 2019 has attracted significant investment from both domestic and international mining companies, boosting the state’s revenue and creating employment opportunities.

Frequently Asked Questions

What is the role of the District Mineral Foundation (DMF) under the NMP?

The DMF is a non-profit trust established in mining districts to ensure that mining activities benefit the local communities affected by mining. It funds projects related to health, education, infrastructure, and livelihood development.

Topics Covered

EconomyGovernanceMineral resources, Policy analysis, Indian economy