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Ban on iron ore mining and exports in Karnataka and Goa led to job losses to the tune of about 1 million, directly and indirectly in recent years, a joint study conducted by Yes Bank and the Associated Chambers of Commerce and Industry (Assocham) said.
“After the global meltdown and export ban in Goa and Karnataka, a significant decline was registered in the production of minerals. This had a major consequence on iron ore exports that declined markedly from over 117 million tonnes (mt) in 2009-10 to about 14 mt in 2013-14 thereby leading to massive job loss,” noted the study: ‘Mining: Building a Sustainable Development Framework For Inclusive Growth’.
“Recent issues of illegal mining, together with regulatory challenges, policy gridlocks, inadequate supporting infrastructure and others are significant hurdles in the growth of India’s mining sector,” said D S Rawat, secretary general of Assocham.
The Assocham-Yes Bank study has suggested that the government take progressive policy initiatives like single window clearances for greenfield and brownfield projects to encourage private sector participation by enhancing domestic availability of major raw materials, improving financing avenues across mineral value chain and initiating steps to promote sustainable practices through larger community engagements and responsible mining.
Rapid urbanisation, coupled with growth in manufacturing sector would fuel up to 9-11 per cent annual growth in demand for various metals and minerals which is further expected to grow 4-5 times during the next decade, added the study.
“India’s mining sector is saddled with logistic inefficiencies, economic, bureaucratic, environmental and a host of capacity issues owing to a lack of co-ordination between various agencies, besides, lack of central planning has resulted in procurement delays,” Rawat said.
The Indian mining industry, which largely comprises small and medium enterprises (SMEs) involved in surveying, exploration and other mining activities, needs to evaluate and tap into some innovative funding sources accessed by its global peers.
More so as recent judicial and regulatory developments in the sector have further dried up new funding areas from banks, the study said.
Limited geological and exploration expenditure, weak law enforcement, lack of coordinated approach in decision making, human resource and technological gaps, insufficient investments are certain key challenges being faced by Indian mining industry, the study pointed out.
A time-bound plan to closely monitor mining activities, introduction of a single-window system to centralise functions of all ministries / agencies to expedite approval processes, offer transparent information to boost investor confidence, enabling local community participation, initiate training programmes to develop skilled manpower, adoption of world-class technology and equipment with the latest emission norms are certain feasible solutions to the problems faced by the industry, the study highlighted.
As per the Ministry of Mines, there are 321 applications for reconnaissance permits, prospecting licenses and mining leases pending for decision at the Centre. The corresponding figure for various State Governments stood at 63,395 on 5th May 2014. Evidently, decision making processes need to be expedited and the most viable solution is the introduction of Single window clearances that could increase operational efficiency through reduced costs and time involved.
India’s mining industry currently lacks the required workforce comprising of engineers, diploma holders and skilled/semi-skilled workers. This has been a major deterrent in enhancing workforce strength and efficiency. There is therefore a pressing need to divert investments towards expanding the human capital pool to bolster the expected growth in future.
