• Ease of doing Business :
    • Mineral concessions (Mining Lease & Prospecting Licence cum Mining Lease) grant to be done through auctions for the companies interested in mining or for the raw material for their downstream industry.
    • An Inter-Ministerial Group facilitator constituted for expediting the clearances and approvals.
    • Exploration companies can venture into the revenue share model being formulated for exploration of blocks identified by GSI. This has been enabled by the National Mineral Exploration policy, announced in July, 2016. About 100 blocks have already been identified by GSI for auctioning.
  • India has vast mineral potential with mining leases granted for longer and stable tenure of 50 years.
  • India’s demand for various metals and minerals will grow substantially over the next 15 years.
  • India’s strategic location enables convenient exports.
  • India’s per capita steel consumption is four times lower than the global average and expected to grow substantially.

GROWTH DRIVERS

  • With the Indian economy expected to grow by approximately 7% in the years to come, sectors such as infrastructure and automobiles will receive a renewed thrust, which would further generate demand for power and steel in the country. This is expected to provide a major thrust to the demand of minerals like coal and iron ore.
  • The growth in the mining sector in terms of production of minerals has significantly improved in comparison to recent past. It is pertinent to recall that earlier the sector recorded a negative growth of 0.6% for two consecutive years (2011-12 and 2012-13).
  • There has been a notable turn around ever since Indian government has taken initiative for policy reforms. This turnaround is very much visible in terms of growth in Gross Value Added (GVA) in mining and quarrying sector. The sector grew by 5.4% and 2.4% in 2013-14 and 2014-15 respectively. During 2015-16, so far the sector has recorded a growth of 3.6% in comparison to similar period last year.
  • The results of Index of Industrial Production for 2015-16 of mining and quarrying segment showed an increase of 2.2% in comparison to same period last year.
  • There is a noticeable surge in mineral production in India. Production of major minerals during the current financial year up to March has recorded the growth of 9 % in comparison to same period last year. The real contributor to this growth have been Bauxite (27%), Chromite (33%), Copper Conc. (30%), Iron ore (21%) and Lead Conc. (32%) in the metallic segment. This growth story is significant as international commodity market is in state of turmoil owing to weak signals coming from the Chinese economy.
  • Minerals like manganese, lead, copper, alumina are expected to witness double digit growth in the years ahead. There is significant scope for new mining capacities in coal, iron ore, and bauxite.
  • India has an advantage in the cost of production and in conversion costs of steel and alumina.
  • Sustained growth in India's automotive sector has been driving demand for steel and aluminium.
  • Infrastructure projects continue to provide lucrative business opportunities for steel, zinc and aluminium producers.

INVESTMENT OPPORTUNITIES

  • Mineral blocks are being put up for auction by the States for Mining or Prospecting cum Mining, depending on their level of exploration. The grant process is to be completely transparent through a competitive bidding on an e-auction portal. An Inter-Ministerial Group, Post Auction Mining Clearances and Approvals Facilitator (PAMCAF) have been constituted which will expedite the requisite clearances to enable the early start of mining activity.
  • The e-Auctions of Mineral Blocks in the country has been started after the MMDR Amendment Act, 2015.
  • Under the newly announced National Mineral Exploration Policy, 2016, about 100 blocks have been identified by GSI for auctioning for regional exploration. The States to auction the blocks for exploration with revenue sharing mechanism. The bidders would be entitled for a normative cost in the event of unsuccessful outcome. The mechanism is being formulated in consultation with the stakeholders.