Reformation in mining sector: a national perspective

Abstract

The Indian mining reform (IMR) adopted by the government in 2015 reflects a paradigm shift from a first-come-first basis resource development model anchored on extractivism (Extractivism generally refers to an economic model centred on the large-scale removal (or ‘extraction’) of natural resources for the purposes of exporting raw materials) to one in which mineral resources are harnessed through e-auction and which would enable to accelerate broad-based development and build resilient, diversified and competitive sectorial economies. The reform is premised on a broad understanding of value beyond mineral revenues and management of mining through a transparent digital technologically driven process. The IMR calls for strong economic and social linkages between the extractive sector and other sectors of the local economy as evidenced by the share of wealth that is retained locally and higher levels of value addition and local content. The successful implementation of the IMR requires strong and well-coordinated institutions and coherent and well-administered policies and regulatory frameworks pitched broadly at a country-wide level that concurrently would enable building multi-stakeholder platforms for dialogue and decision-making. This paper discusses the mining reforms in India as an instrument that would facilitate implementation of Make in India, Digital India, Clean India, Skill India and Sab ka sath sab ka vikash programmes as envisaged by the government of the day.