In a recent tweet, Anil Agarwal, Chairman of Vedanta Ltd., highlighted critical structural challenges impacting India’s mining sector and called for immediate policy interventions to accelerate domestic production and strengthen resource security.
Drawing attention to the current state of the sector, Agarwal noted that nearly 85% of mining blocks auctioned over the past decade remain non–operational, with only 82 out of 592 blocks currently producing output. He emphasized that this comes at a time when approximately 50% of India’s $400 billion import bill is driven by dependence on imported natural resources—resulting in significant job creation outside the country.
Agarwal identified three key bottlenecks hindering operationalization: challenges in land acquisition, delays in securing approvals including environmental and forest clearances, and high premiums on certain mines that render them commercially unviable.
Emphasizing the strategic importance of energy and mineral security amid global uncertainties, he advocated for faster post-auction execution. Key recommendations included the adoption of a technology-enabled, direct-payment system for land acquisition, streamlined approval processes based on self-certification and trust-based regulation, and capping mining premiums at 60% to ensure economic viability.
He further noted that India holds immense potential to emerge as a global hub for minerals, metals, and hydrocarbons, positioning the sector as a key driver of employment generation, including for women.
Reiterating confidence in the Government’s facilitative approach, Agarwal called for collective action to leverage this opportunity and advance the vision of an Atmanirbhar Bharat.
