MMDR reforms to give new LIFE to the mining sector

Building a post-Covid-19 world requires grit, perseverance and a vision—precisely everything that makes up Prime Minister Narendra Modi. The world was taken aback with the pandemic and was struggling to deal with it when our Prime Minister announced the grand vision of a self-reliant India, the AatmaNirbhar Bharat.

As the Union Minister of Mines and Coal, I often reflect upon my ministry’s contribution to this grand initiative. We were collecting daily reports down to each district and having detailed deliberations with none other than the Prime Minister himself.

Therefore, when during the launch of auction for commercial mining of coal, on June 18, 2020, PM Modi talked about ending decades of lockdown in coal, the sector was only too ready to don the new avatar. In the ensuing months, the government galvanised its machinery to remodel the mineral mining sector.

The mining sector is next only to agriculture in terms of generating employment. The sector directly and indirectly employs about 1.1 crore people and sustains the livelihood of about 5.5 crore people in the country. One direct job in the sector creates 10 indirect jobs. Similarly, 1% growth in mining results in a 1.5% growth in industrial production.

Its importance grows manifold when we consider other allied sectors that depend on it for their survival and existence. Sectors such as steel, aluminium, commercial vehicles, rail transportation, ports, shipping, power generation, etc, are closely linked to the mining sector. Therefore, a boost to the mining sector will boost these sectors as well, which, together, will brighten the economic horizon of the nation.

With a sector having such far-reaching significance in generation of employment opportunities, the Modi government envisions increasing its contribution from 1.75% of GDP currently to 2.5% of GDP, with an aim to increase the mineral production output by 200% in the next seven years.

financial express
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