ffil LWi Gouranga Sen MINING in lndia has come to a crucial juncture where both the mining industry and the government have to commit to scientific and sustainable mining prac- tices. While the mining PSUs are struggling to meet the increased domestic demand because of in- herent operational inefficiencies and regulatory hurdles, private mining is facing permitting is- sues, land acquisition challenges, financing is- sues and inexperience. Under such circum- stances the services of specialist Mine Developers and 0perators (MDO) would be the long-term solution for lndian mining industry. Poor Show of Mining Sector For a country craving for coming back to an 8% "EWffi SffiffiW$trffiS ffiff %ffiffifl$&L$SY tuX$ruffi ffiffiwtrr$_ffiffiffiffi,s &ruffi #ffiffiffi&Y#ffiffi {$k$ffi#} w#ffituffi ffiffi ?ffiffi L#ruffi-Yffiffi$k$ %ffitu#Y$ffiru F#ffi Y$*ffi w$ru#Fdffi $ffiffiws?'ffiv plus GDP growth on a sustained basis, the eco- nomic indicators for mining sector are scary. ln- dia's mining industry growth rate has turned negative to -1.4o/o in FY2013-14 from 6.5% FY2010-11. lndustry's share in the national economy has also come down from 2.3% (FY201 0-201 I ) to 1 S% (FY2013-201 ).The ban on iron ore and manganese mining in the major producing states like Karnataka, Gca and 0disha has been the root cause. lndia's minerals trade has also deteriorated, particularly for bulk commodities like iron ore and coal. lndia, in spite of being the fourth largest producer of iron ore in the world, is turn- ing out to be a major importer of iron ore this year. 0ur research shows that lndia has already imported around 5.7 mt during AprOct'14 while exports have dwindled to just 3 mt dur- ing this period making lndia a net importer of iron ore first time in recent history. india's coal import has also increased to an alltime high of 1 75 mt in FY201 3-1 4. lncreased import of coal and decreased exporl of ironore have been ad- versely impacting the national exchequer and worsening the country's current account deficit ] L DECEVBFB2014 tMME2014 I 23
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Transcript
ffilLWiGouranga Sen
MINING in lndia has come
to a crucial juncture where
both the mining industry
and the government have
to commit to scientific and
sustainable mining prac-
tices. While the mining
PSUs are struggling to meet
the increased domestic demand because of in-
herent operational inefficiencies and regulatory
hurdles, private mining is facing permitting is-
sues, land acquisition challenges, financing is-
sues and inexperience. Under such circum-
stances the services of specialist Mine
Developers and 0perators (MDO) would be the
long-term solution for lndian mining industry.
Poor Show of Mining SectorFor a country craving for coming back to an 8%