Page 674 - ES 2020-21_Volume-1-2 [28-01-21]

Industry and Infrastructure 301

mining and quarrying sector in FY20 was ` 3,93,102 crores (at current price), accounting for
about 2.1 per cent of the overall GVA during FY20. The production value of the major minerals
increased by 2.3 per cent in FY20 as compared to 22.4 per cent growth in FY19. The mining
sector has undergone significant reforms in recent years, that has resulted in better exploration
and utilization of natural resources (Box 9).

Figure 43: T&D Loss of India Figure 44: T&D Loss of
vis-à-vis other countries India Since Independence

25 35
33
20 31
29
15 27
2015 2016 25
23
10
21
19
5
17
15
0 13
Korea Japan Germany China USA Australia Italy France UK S. Africa Canada Russia Brazil India World 1947 1955-56 1965-66 1973-74 1979-80 1989-90 1996-97 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18

Source: Survey calculations based on CEA report. Source: Survey calculations based on CEA report.

Box 9: Policy Initiatives in Mineral Sector

Amendments in the Mines and Mineral (Development and Regulation) Act, 1957 (MMDR Act) in
2015 heralded major reforms in this sector. The move towards grant of mineral concessions through
auction as against the earlier method of ‘first-come-first-served’ brought in transparency and removed
discretion in the grant of mineral concessions. Establishment of the National Mineral Exploration
Trust (NMET) for providing impetus to exploration; uniform lease period of 50 years; dispensing
of the requirement of previous approval of the Central Government for grant of mineral concession
other than for atomic minerals, coal and lignite; establishing district mineral foundation for benefit of
people and areas affected by mining.

Recently, the GoI has taken following legislative and policy reform measures:
• The MMDR Act was amended in January-2020 to provide for, inter-alia, transfer of all valid
statutory clearances vested with the old lessee to the new successful bidder up to a period of
two years for all brownfield mines, so that there is no disruption in production and supply of
raw material in the industry.
• At present after auction of mines, the successful bidder applies for clearances and after obtaining
clearances production starts. Generally, getting clearances takes longer times, anywhere around
3 to 4 years and consequently production is delayed. For immediate start of production after
auction, approach adopted in the amended Act is that States need to obtain the clearances before
auction. As a result, production will start without any delay because clearances are already
available. To implement this concept, Ministry of Mines has issued guidelines for pre-embedded