Snapshot

Mining the future

India is home to 1,531 operating mines and produces 95 minerals. The industry accounted for about 2.9% of the total gross value added (GVA) in 2017-18.

The total value of mineral production (excluding atomic & fuel minerals) during 2017-18 has been estimated at $ 16.6 bn, which shows an increase of about 13% over that of the previous year. During 2017-18, the estimated value for metallic minerals is $ 7.7 bn or 47.7% of the total value and non-metallic minerals including minor minerals is $ 8.8 bn or 53.3% of the total value.

  • India is forecast to become the 2nd largest steel consumer by end - 2019; per capita steel consumption is expected to rise from 69 kg to 160 kg by 2030
  • Coal’s share in India’s primary energy consumption is expected to be 48% in 2040

100% FDI allowed in the Steel and Mining sectors under automatic route

100% FDI allowed in Coal and Lignite mining under automatic route

100% FDI allowed in Mining and mineral separation of titanium bearing minerals and ores, its value addition and integrated activities under government route

For further details, please refer FDI Policy

  • 10 %

    Coal producer share

  • 39.8 %

    Petcoke imports growth

  • 5.33

    Primary Aluminium Production Share

  • 5.9 %

    India's share in crude steel production

A

Second largest crude steel producer in the world

C

Second largest coal producer in the world

B

Fourth largest iron ore and aluminium producer in the world

Industry Scenario

With barely 20% of reserves mined, India presents a major opportunity for investors.

India has large reserves of Iron ore, Bauxite, Chromium, Manganese ore, Baryte, Rare earth and Mineral salts. India produces as many as 95 minerals, which includes 4 fuel, 10 metallic, 23 non-metallic, 3 atomic and 55 minor minerals (including building and other materials). In 2015-16, there were more than 2,101 reported mines excluding atomic and minor minerals, natural gas and petroleum (crude).

Out of 2,101 reported mines, 274 were located in Madhya Pradesh followed by Tamil Nadu (252), Gujarat (225), Jharkhand (211), Chhattisgarh (162), Odisha (157), Karnataka (146), Andhra Pradesh (135), Maharashtra (134), West Bengal (100). These 10 states together accounted for 85% of the total number of mines in the country in 2015-16. Among them, 558 mines belonged to coal and lignite, 668 to metallic minerals and 975 to non-metallic minerals.

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.

Growth Drivers

  • Cost advantage

    Cost advantage in steel and alumina production-conversion
  • Rising demand from infrastructure and transportation sectors

    Schemes such as Housing for all by 2022 and expansion of railway network
  • Unexplored mines

    Only 20% of the total reserves have been mined till now
  • Supportive government policies

    Permission granted to captive mines to sell coal in open market
  • Open

    Mines and Mineral Development and Regula…

    An Act to provide for the development and regulation of mine…

  • Open

    National Mineral Exploration policy, 201…

    The National Mineral Exploration policy document spells out…

  • Open

    National Mineral Exploration Trust (NMET…

    The Indian Government has created NMET to increase spending…

  • Open

    National Mineral Policy 2019

    To promote sustainable extraction of minerals, and create an…

  • Open

    National Steel Policy

    The new Steel Policy enshrines the long term vision of the G…

Investible Projects

Investment Opportunities in Metals & Mining

  • Projects

    5

  • Opportunity

    $3.44 bn

  • Promoters

    4

  • District

    5

  • Private Projects

    1

  • Govt. Projects

    4

open

$1.71 bn

Gevra Open Cast Coal Mining Project

State (s) Chhattisgarh
open

$1.1 bn

Kusmunda Coal Mining Project

State (s) Chhattisgarh
open

$394.49 mn

Open Cast Coal Mining Project [Dudhichua]

State (s) Madhya Pradesh, Uttar Pradesh
open

$224.94 mn

Rampur-Batura Open Cast Mining Project

State (s) Madhya Pradesh

Major Investors

Data on Map

  • Mining projects in India
  • Mining business in India

Latest in Metals & Mining

FAQ

Frequently
Asked Questions

  • What are the activities of ENVIS Centre, MINENVIS ?

    Maintains a database management system to cater to the requirements of various users/ 
    stakeholders of the mineral industry and regularly publishes Newsletters and Monographs.
     

  • Will ITC be available on steel, timber and sometimes cement which are used in the underground mines to provide a protective device for security purpose?

    Credit will not be available, if these goods are supplied for construction of an immovable property. 
    But if these are temporarily placed for protective purposes, credit will be available.

  • What are the Existing Legislative Provisions regarding safety, health and welfare of mine workers?

    Under the Constitution of India, safety, welfare and health of workers employed in mines are the concern of the Central Government (Entry 55- Union List- Article 246). The objective is regulated by the Mines Act, 1952 and the Rules and Regulations framed thereunder which are administered by the Directorate- General of Mines Safety (DGMS), under the Union Ministry of Labour and Employment.
    A list of the subordinate legislation under the Mines Act administered by DGMS are:
    1) Coal Mines Regulations, 1957. 
    2) Metalliferous Mines Regulations, 1961.
    3) Oil Mines Regulations, 1984. 
    4) Mines Rules, 1955. 
    5) Mines Vocational Training Rules, 1966. 
    6) Mines Rescue Rules, 1985. 
    7) Mines Creche Rules, 1966.  
     

  • Will the basic exemption limit from GST be applicable to the tiny and micro segment in mining?

    Yes, the basic exemption limit of $ 15,385 ($ 7693 in the case of special category States) is applicable to the tiny and micro segment even in mining. However, a person engaged in making taxable supply and having aggregate annual turnover (more than $ 15,385in any State other than the special category States) would be liable to obtain registration under GST. The return has to be filed on monthly basis by regular taxable persons and on quarterly basis by the taxable persons registered under the composition scheme. 

  • What is the GST rate for minerals and ores in Composition Scheme?

    In a case where the process amounts to manufacture, the rate of tax will be 1% (CGST) and 1% 
    (SGST/UTGST). In any other case, the rate will be 0.5% (CGST) and 0.5% (SGST/UTGST).

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