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India has been among the world’s leading mining nations, and is endowed with vast mineral wealth. As a part of the Gondwana geological landmass, India has a strong natural potential for coal, iron ore and bauxite. Accounting for about 6% of the global endowments, current estimates mark India’s iron ore reserves at 23bn tonnes. The grade and quality of coal available in India may not be top notch, but the nation ranks fourth worldwide, with reserves estimated at around 253.3bn tonnes. However, much of India’s mining potential has not been attained due to outmoded legislation and government apathy in the past. Stringent regulations, both to control as well as protect the industry, have cumulatively countervailed most of the growth potential so far. For instance, with the objective of supplying coal at reasonable rates to strategic industries such as cement, power and steel, the government implemented the Coal Mines Nationalisation Act in 1973. Apart from creating serious inefficiencies, this legislation led to an insulated market translating into little scope for overseas investment. Post reforms, the government is now striving to rationalise the high-risk investment environment faced by mining players. Policy recommendations by the Hoda Committee need to be implemented in order to achieve the overall investment target of US$22.37bn for the 2007-2009 period. Meanwhile, endemic problems such as delays in the issue of licences, infrastructural limitations, stringent investment regulations and the prevailing low levels of mining royalties continue to hound the industry. The decision-making powers of many Indian states, which hold the sole licensing authority for a number of minerals, have caused unrest among investors. This is in spite of efforts to maintain a degree of uniformity in the licensing norms. States create their own qualifying stipulations, often requiring companies to invest in other development projects in their domains. This acts as a disincentive for the global investor, more so, in situations where there is uncertainty of tenure For more details please visit:http://www.bharatbook.com/Market-Research-Reports/Mining-Report-India.html or Contact us: Bharat Book Bureau 207, Hermes Atrium, Sector 11, PO Box.54, CBD Belapur, Navi Mumbai - 400 614, India. Phone : +91 22 2757 8668 / 2757 9438 Fax : +91 22 2757 9131 E-mail : info@bharatbook.com Website : www.bharatbook.com
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