Legislative Reforms and Challenges to Provide an Impetus to Mineral Exploration in India

Abstract

Minerals and metals are crucial raw materials for industries and a major source of development for the country. In India there has been a pronounced growth in the exploration for minerals both in terms of quantity and value. To further enhance the growth rate and remove any bottleneck, the government has taken several legislative reforms through more transparency and non-discretion by way of first-come, first-served basis in the allocation of mineral concessions, through Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2015. Recently, MMDR Act, 1957 has been amended through the Mines and Minerals (Development and Regulation) Amendment Act, 2021 vide notification dated 28.03.2021 for improving ease of doing mineral production and business in the country and help increase Gross Domestic Product (GDP). Exploration of energy-critical minerals, fertilizer minerals, precious metals and stones, strategic minerals and deep-seated minerals which are otherwise difficult to access and for which the country is mainly dependent on imports, needs to be prioritized. Enhanced exploration and mining can significantly reduce India’s import dependence on mineral and metals and help economic growth. For comparison, only 10% of obvious geological potential (OGP) area of India has been explored while Australia has explored more than 90% of its area. In this paper, some of these legislative reforms and challenges to provide an impetus to mineral exploration are discussed.