Question : DEVELOPMENT OF MINING SECTOR

:

(a) whether the productivity of mining sector is not growing at the required pace due to lack of investment;

(b) if so, the details thereof and the special policy measures being taken by the Government to attract local and foreign investment in this sector;

(c) whether the mining sector requires to use several such new technologies for making mining activities more cost-effective and dynamic, which are not available with India, at present; and

(d) if so, the action plan of the Government to bring suitable new technology in the mining sector to increase its productivity and growth in the country?

Answer given by the minister


THE MINISTER OF STATE FOR MINES AND STEEL (SHRI VISHNU DEO SAI)

(a) and (b): The mining sector has been liberalized and is dominated by large number of private sector miners. The productivity varies from company to company depending upon host of factors, including investments and state of technology being deployed. At macro level, according to new series of the Gross Domestic Product, the Gross Value Added by the mining and quarrying sector at constant prises is rising over a period of time. The details are provided in the table presented below:-
GVA at constant prices (at 2011-12 prices)

 Mineral	2012-13 (NS)	2013-14 (NS)	2014-15(AE) GVA of Mining & Quarrying Sector (at constant Prices) in Rs. crore	262253	276380	282605 


NS : New Series Estimates; AE Advance Estimates; Source; Indian Bureau of Mines

(c) and (d): To attract foreign investment, 100% Foreign Direct Investment is permitted in the mining sector. The National Mineral Policy, 2008 inter alia provides guidance for promoting research and development in the mineral sector directed towards the development of new technologies for conversion of existing mineral resources into viable economic resources and improvement of regulatory environment. Further, the Government has come out with Mines and Minerals (Development and Regulation) Amendment Act, 2015 which provides the framework for promoting transparency in the mining sector to boost the investments. However, choice of technology is a commercial decision resting entirely with the mine owners.