{"id":220325,"date":"2022-12-29T20:16:09","date_gmt":"2022-12-29T14:46:09","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=220325"},"modified":"2022-12-29T20:16:09","modified_gmt":"2022-12-29T14:46:09","slug":"mineral-intensive-growth-would-need-the-country-to-ease-mining","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/mineral-intensive-growth-would-need-the-country-to-ease-mining\/","title":{"rendered":"Mineral-intensive growth would need the country to ease mining"},"content":{"rendered":"\n

Source<\/span><\/b>: The post is based on the article <\/span>\u201c<\/span><\/b>Mineral-intensive growth would need the country to ease mining<\/span><\/b>\u201d <\/span><\/b>published in<\/span> the <\/span>mint <\/span><\/b>on <\/span>29th December 2022<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

Syllabus: <\/span><\/b>GS3- Industrial policy. GS1- Economic geography<\/span>\u00a0<\/span><\/p>\n

Relevance<\/span><\/b>: Important minerals for economy<\/span>\u00a0<\/span><\/p>\n

News<\/span><\/b>: The article explains the issues faced by the mining sector in India. It also explains the reasons for the increasing demand for minerals in India in upcoming times<\/span>\u00a0<\/span><\/p>\n

Why will the demand for minerals increase in the upcoming times?<\/span><\/b>\u00a0<\/span><\/h5>\n

The Indian government is focussing on e<\/strong><\/span>lectric vehicles<\/span><\/b>. These vehicles require six times more minerals than conventional cars. As a result of this; the demand for lithium, cobalt, nickel, and graphite alongside iron and bauxite will be enormous.<\/span>\u00a0<\/span><\/p>\n

PLI schemes<\/span><\/b> for advanced chemistry cell batteries, solar PV modules, white goods and electronics manufacturing are expected to increase demand for <\/span>energy-transition minerals<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

India has set the target of 500 GW of <\/span>non-fossil fuel energy<\/span><\/b> capacity. It will be largely met by wind and solar energy. As per <\/span>IEA<\/span><\/b>, onshore winds require nine times more minerals than a gas-fired power plant and solar PV panels require thrice more minerals than coal-fired power plants.<\/span>\u00a0<\/span><\/p>\n

India aspires to be the <\/span>electronics hub <\/span><\/b>of the world. Minerals will play a crucial role in achieving it. 13 minerals are used in a mobile handset.<\/span>\u00a0<\/span><\/p>\n

Traditional sectors<\/span><\/b> like housing, infrastructure and transportation also require minerals.<\/span>\u00a0<\/span><\/p>\n

What are the issues faced by the mining sector in India?<\/span><\/b>\u00a0<\/span><\/h5>\n

The Indian mining industry still faces r<\/strong><\/span>egulatory hurdles<\/span><\/b> that restrain the growth of mineral production. India’s e<\/strong><\/span>xpenditure on exploratio<\/strong>n<\/strong> particularly for deep-seated minerals like copper, zinc and gold has been abysmally low.<\/span>\u00a0<\/span><\/p>\n

Indian law does not let a m<\/strong><\/span>ining<\/strong> lease<\/span><\/b> beyond 10 sq km for a mineral in a state.<\/span>\u00a0<\/span><\/p>\n

Minerals like iron ore and bauxite also face the problem of <\/span>double taxation in form of royalty on royalty<\/span><\/b>.<\/span>\u00a0<\/span><\/p>\n

There is also <\/span>differential treatment<\/span><\/b> across minerals for calculating the <\/span>Auction Sale Price(ASP)<\/span><\/b>. The ASP of bauxite is 3\u20134 times the actual market price. It hinders large-scale auctions of bauxite.<\/span>\u00a0<\/span><\/p>\n

What is the way forward for improving the condition of the mining sector?<\/span><\/b>\u00a0<\/span><\/h5>\n

To encourage exploration, there is a need to shift the current <\/span>\u201crevenue maximising\u201d <\/span><\/b>model to an <\/span>\u201cexploration investment incentivising\u201d <\/span><\/b>model.<\/span>\u00a0<\/span><\/p>\n

In the auction regime, area restrictions on mining leases should be removed.<\/span>\u00a0<\/span><\/p>\n

The law must exclude royalty and other charges from the sale value to determine the <\/span>Auction Sale Price(ASP)<\/span><\/b>.<\/span> ASP determination<\/span><\/b> for all minerals should be uniform.<\/span>\u00a0<\/span><\/p>\n

Private participation<\/span><\/b> in the mining of critical minerals that have important non-atomic use like lithium should be allowed. Such non-fissile minerals should be excluded from Part B of the first schedule of the <\/span>Mines and Minerals (Development and Regulation) Act, 1957<\/span><\/b>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cMineral-intensive growth would need the country to ease mining\u201d published in the mint on 29th December 2022.\u00a0 Syllabus: GS3- Industrial policy. GS1- Economic geography\u00a0 Relevance: Important minerals for economy\u00a0 News: The article explains the issues faced by the mining sector in India. It also explains the reasons… Continue reading Mineral-intensive growth would need the country to ease mining<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,11126],"class_list":["post-220325","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/220325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=220325"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/220325\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=220325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=220325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=220325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}