As per the Mines and Minerals (Development & Regulation) Act (MMDR) Amendment Act 2015, the grant of Mining Leases (ML) and Prospecting License-cum-Mining Lease (PL-cum-ML) happens only through an auction process.
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India is home to 1,531 operating mines and produces 95 minerals – 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals. India is the 2nd largest producer of coal. Coal production grew at CAGR 4.6% over FY14-FY19 (to 730.35 MT) and is expected to grow 6-7% Y-o-Y over FY20 as miners focus on the surface mining of coal. Coal’s share in India’s primary energy consumption is expected to be 48% in 2040. India is the 2nd largest crude steel producer in the world, generating an output of 106.5 MT in 2018, a growth of 3.7% Y-o-Y. India’s steel consumption rose 7.5% Y-o-Y and 7.9% Y-o-Y over the last 2 years, outpacing a 2.1% to 5% growth globally.
The country’s FDI Policy allows:
100% FDI through automatic route in the steel and mining sectors
100% FDI for coal and lignite under automatic route
For further details, please refer FDI Policy
Domestic steel production capacity by 2030
FDI equity inflows into the Metallurgical and mining (April 2000-June 2019)
FDI equity inflows into coal production (April 2000-June 2019)
Aluminium production growth forecast (by FY20)
Second largest crude steel producer in the world
Second largest coal producer in the world
Fourth largest iron ore producer in the world
India has large reserves of Iron ore, Bauxite, Chromium, Manganese ore, Baryte, Rare earth and Mineral salts.
The Metals and Mining sector in India is expected to witness a major reform in the next few years, owing to reforms such as Make in India Campaign, Smart Cities, Rural Electrification and a focus on building renewable energy projects under the National Electricity Policy as well as the rise in infrastructure development.
Cost advantage in steel and alumina production-conversion
Schemes such as Housing for all by 2022 and expansion of railway network
Only 20% of the total reserves have been mined till now
Permission granted to captive mines to sell coal in open market