{"id":77721,"date":"2021-01-20T15:33:05","date_gmt":"2021-01-20T10:03:05","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=77721"},"modified":"2021-03-13T10:52:45","modified_gmt":"2021-03-13T05:22:45","slug":"ensuring-intergenerational-equity-in-mining-in-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/ensuring-intergenerational-equity-in-mining-in-india\/","title":{"rendered":"Ensuring Intergenerational Equity in\u00a0Mining in India\u00a0"},"content":{"rendered":"<p><b><span data-contrast=\"auto\">Synopsis:\u00a0\u00a0<\/span><\/b><span data-contrast=\"auto\">For ensuring Intergenerational Equity, it is important to ensure availability of resources for future generation. For this, sustainable mining should be ensured.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Introduction\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<div class=\"content-box-green\"><span data-contrast=\"none\">India\u2019s<\/span><b><span data-contrast=\"none\">\u00a0National Mineral Policy 2019<\/span><\/b><span data-contrast=\"none\">\u00a0states that \u201cnatural resources, including minerals, are a shared inheritance where the state is the trustee on behalf of the people to make sure that future generations receive the benefit of inheritance.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/div>\n<p><span data-contrast=\"none\">But Present trend of mining as much as possible, is not\u00a0<\/span><span data-contrast=\"none\">according to the role of trustee\u00a0acquired by the government<\/span><span data-contrast=\"none\">\u00a0in its policy<\/span><span data-contrast=\"none\">.\u00a0<\/span><span data-contrast=\"none\">The extraction of oil, gas and minerals is effectively the sale of this inheritance.<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Wh<\/span><\/b><b><span data-contrast=\"auto\">at are the issues in\u00a0<\/span><\/b><b><span data-contrast=\"auto\">mining\u00a0<\/span><\/b><b><span data-contrast=\"auto\">trends at present<\/span><\/b><b><span data-contrast=\"auto\">?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25aa\" data-font=\"Noto Sans Symbols\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">First<\/span><\/b><span data-contrast=\"none\">, governments\u00a0<\/span><span data-contrast=\"none\">without their role of trustee in mind<\/span><span data-contrast=\"none\">,\u00a0end up<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-contrast=\"none\">with a\u00a0<\/span><span data-contrast=\"none\">mineral\u00a0<\/span><span data-contrast=\"none\">price that\u00a0<\/span><span data-contrast=\"none\">is<\/span><span data-contrast=\"none\">\u00a0considerably lesser than what they are worth<\/span><span data-contrast=\"none\">.<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"none\">For example, it is projected from the yearly reports of Vedanta that from 2004 to 2012, Goa lost more than 95% of the value of its minerals. They sold mineral wealth worth 100 rupees for 5 rupees.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:1440,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u25aa\" data-font=\"Noto Sans Symbols\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Second,<\/span><\/b><span data-contrast=\"none\">\u00a0extractors\u00a0<\/span><span data-contrast=\"none\">tr<\/span><span data-contrast=\"none\">y<\/span><span data-contrast=\"none\">\u00a0to extract as much as possible and\u00a0<\/span><span data-contrast=\"none\">move on\u00a0<\/span><span data-contrast=\"none\">quickly\u00a0<\/span><span data-contrast=\"none\">to\u00a0<\/span><span data-contrast=\"none\">reduce their cost and\u00a0<\/span><span data-contrast=\"none\">maximize their profits from an area<\/span><span data-contrast=\"none\">.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25aa\" data-font=\"Noto Sans Symbols\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"none\">Third,<\/span><\/b><span data-contrast=\"none\"> the government also allows the hasty extraction, as it\u00a0<\/span><span data-contrast=\"none\">perceives<\/span><span data-contrast=\"none\">\u00a0more mining equals more government revenue.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">What are the steps to be taken?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The Government Accounting Standards Advisory Board needs to correct this error in the standards for public sector accounting and reporting for mineral wealth.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25aa\" data-font=\"Noto Sans Symbols\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">There should be\u00a0<\/span><b><span data-contrast=\"none\">legal safeguards against unregulated mining<\/span><\/b><span data-contrast=\"none\">\u00a0and minerals should be considered as a shared inheritance.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\u25aa\" data-font=\"Noto Sans Symbols\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The state as\u00a0<\/span><b><span data-contrast=\"none\">trustee of mineral wealth must collect the full economic rent<\/span><\/b><span data-contrast=\"none\">\u00a0<\/span><span data-contrast=\"none\">i.e.,<\/span><span data-contrast=\"none\"> sale price minus the cost of extraction and cost including profit for the extractor. The full value of the extracted minerals should be received by the state, according to India\u2019s national mineral policy 2019.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25aa\" data-font=\"Noto Sans Symbols\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">India\u00a0<\/span><span data-contrast=\"none\">can\u00a0<\/span><span data-contrast=\"none\">also\u00a0<\/span><span data-contrast=\"none\">maintain<\/span><span data-contrast=\"none\">\u00a0the entire mineral sale profits in\u00a0<\/span><b><span data-contrast=\"none\">a Future Generations Fund\u00a0<\/span><\/b><span data-contrast=\"none\">like Norway<\/span><span data-contrast=\"none\">\u00a0did<\/span><span data-contrast=\"none\">. Th<\/span><span data-contrast=\"none\">is<\/span><span data-contrast=\"none\">\u00a0Fund could be submissively financed through the National Pension Scheme framework.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\u25aa\" data-font=\"Noto Sans Symbols\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"none\">The Supreme Court gave a judgement in Goa Foundation vs UOI &amp;\u00a0<\/span><span data-contrast=\"none\">Ors<\/span><span data-contrast=\"none\">\u00a0and ordered the creation of a Goa\u00a0<\/span><b><span data-contrast=\"none\">Iron Ore Permanent Fund in 2014<\/span><\/b><span data-contrast=\"none\">, which already has an amount of \u20b9500 crores.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:720,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"o\" data-font=\"Courier New\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"2\"><span data-contrast=\"none\">This may be distributed as a citizens\u2019 dividend, equally to all the owners and future generations would benefit from the dividend in their turn.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:1440,&quot;335559737&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276,&quot;335559991&quot;:360}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Way forward\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:200,&quot;335559740&quot;:276}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\u25aa\" data-font=\"Noto Sans Symbols\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The principle of fair mining\u00a0<\/span><span data-contrast=\"none\">in return of\u00a0<\/span><span data-contrast=\"none\">its<\/span><span data-contrast=\"none\">\u00a0real value\u00a0<\/span><span data-contrast=\"none\">is<\/span><span data-contrast=\"none\">\u00a0fully constitutional, promoting justice, liberty, equality, and fraternity. The reduction in losses would\u00a0<\/span><span data-contrast=\"none\">also\u00a0<\/span><span data-contrast=\"none\">limit corruption, c<\/span><span data-contrast=\"none\">rony<\/span><span data-contrast=\"none\">\u00a0capitalism and growing inequality.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis:\u00a0\u00a0For ensuring Intergenerational Equity, it is important to ensure availability of resources for future generation. For this, sustainable mining should be ensured.\u00a0\u00a0 Introduction\u00a0\u00a0 India\u2019s\u00a0National Mineral Policy 2019\u00a0states that \u201cnatural resources, including minerals, are a shared inheritance where the state is the trustee on behalf of the people to make sure that future generations receive the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/ensuring-intergenerational-equity-in-mining-in-india\/\">Continue reading <span class=\"screen-reader-text\">Ensuring Intergenerational Equity in\u00a0Mining in India\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":77722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[1332],"class_list":["post-77721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","tag-geog_5","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2021\/01\/Ensuring-Intergenerational-Equity-in-Mining-in-India.jpg?fit=1280%2C720&ssl=1","views":{"total":0,"cached_at":"","cached_date":1701182292},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/77721","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=77721"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/77721\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/77722"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=77721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=77721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=77721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}