Note4Students
From UPSC perspective, the following things are important:
Prelims level: Green Cover around Coalfields
Why in the News?
Coal & Lignite Public Sector Undertakings (PSUs) such as Coal India Limited (CIL), NLC India Limited (NLCIL), and Singareni Collieries Company Limited (SCCL) have implemented various innovative plantation techniques in addition to traditional methods to increase green cover in and around coalfields.
Achievements in Green Cover Creation:
- Coal & Lignite PSUs have successfully created green cover on 10,942 hectares of land as part of their plantation and bio-reclamation efforts over the last 5 years.
- The efforts are primarily focused on coal and lignite mining areas and surrounding regions.
Guidelines and EC Conditions
- The MoEF&CC sets out specific and general conditions for plantation in the Environmental Clearance (EC) of coal mining projects.
- Plantations are carried out on:
- Reclaimed degraded forest areas
- Non-forest lands and overburden dumps to ensure proper reclamation and regeneration of green cover.
- Under the guidance of the Ministry of Coal, 16 Eco-parks/Mine Tourism sites have been established over the last 5 years.
- These sites aim to:
- Promote environmental regeneration
- Encourage tourism and recreational activities in coal mining areas, boosting local economies and raising environmental awareness.
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Innovative techniques for enhancing Green Cover around Coalfields
- Three-tier plantation: A method involving planting different species at varying heights to create a layered canopy for enhanced biodiversity.
- Seed ball plantation: Seeds are encased in soil and compost balls and thrown in barren or degraded areas to promote natural growth.
- Miyawaki plantation: A high-density plantation technique aimed at creating a dense, self-sustaining forest in a shorter period.
- High-tech cultivation: Utilizing modern agricultural techniques for efficient plantation and maintenance.
- Bamboo plantation: Focusing on bamboo as a fast-growing and environmentally beneficial plant for reclamation.
- Drip irrigation on overburden dumps: Use of efficient water management systems to promote plantation on areas like overburden dumps.
PYQ:
[2019] Consider the following statements:
- As per law, the Compensatory Afforestation Fund Management and Planning Authority exists at both National and State levels.
- People’s participation is mandatory in the compensatory afforestation programmes carried out under the Compensatory Afforestation Fund Act, 2016.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 |
Note4Students
From UPSC perspective, the following things are important:
Mains level: Mineral diplomacy;
Why in the News?
Reliance on critical mineral imports, especially from China, poses strategic concerns. To address this, the Indian government is advancing its Mineral Diplomacy to enhance security and reduce strategic vulnerabilities.
What is Mineral diplomacy?
Mineral diplomacy refers to a nation’s strategic efforts to secure critical mineral supplies through international partnerships, trade agreements, and resource-sharing initiatives, ensuring economic stability and reducing geopolitical vulnerabilities.
India’s Mineral Diplomacy of 2024
Aim: To coordinate efforts in securing access to critical minerals both domestically and internationally. It focuses on enhancing resource mapping, accelerating exploration activities, and developing resilient supply chains for minerals vital to India’s industrial and green energy targets.
Key Features:
- International Partnerships: India is actively engaging with resource-rich countries, particularly in Africa, to secure essential minerals. This includes participation in the Mineral Security Partnership (MSP) and bilateral agreements like the India-Australia Critical Minerals Investment Partnership, which are designed to fortify supply chains and position India as a key player in global mineral diplomacy.
- Domestic Reforms: The Mines and Minerals (Development and Regulation) Amendment Bill, 2023 allows private sector participation in exploring critical minerals. This reform is expected to boost domestic supply and reduce reliance on imports, aligning with India’s goal of achieving self-sufficiency.
- Geopolitical Context: As global competition for critical minerals intensifies, India’s mineral diplomacy is not just about securing resources but also about establishing itself as a significant player in the clean energy economy.
- India is emphasizing responsible mining practices to differentiate itself from competitors like China.
- Focus on Recycling: The mission prioritizes recycling critical minerals from electronic waste and used batteries, ensuring resource efficiency and sustainability amidst limited reserves.
- Investment in Technology: India plans to leverage advanced technologies such as AI and machine learning for geological mapping to enhance exploration efforts.
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What are the strategic objectives of India’s Critical Mineral Mission 2024?
India’s Critical Mineral Mission aims to secure a stable supply of essential minerals for its economic and technological growth. The strategic objectives include:
- Reducing Import Dependency: By decreasing reliance on imports, particularly from China, India seeks to enhance its mineral security and mitigate economic risks associated with geopolitical tensions.
- Enhancing Domestic Production: The mission focuses on boosting domestic exploration and production capabilities for critical minerals, thereby fostering self-sufficiency.
- Facilitating Recycling and Sustainable Practices: Emphasis is placed on recycling critical minerals to ensure a sustainable supply chain while addressing environmental concerns.
How is India leveraging international partnerships to enhance its mineral supply chains?
India is actively engaging in international partnerships to enhance its mineral supply chains through several strategic initiatives:
- Bilateral Agreements: India has established partnerships with resource-rich countries like Australia, Argentina, and Kazakhstan to secure supplies of lithium and cobalt. For instance, KABIL signed a memorandum of understanding with Australia for lithium and cobalt projects.
- Joint Ventures: The formation of joint ventures, such as IREUK Titanium Limited with Kazakhstan, aims to develop production capabilities within India, thus integrating into the global supply chain.
- Multilateral Engagements: India is participating in multilateral initiatives like the Quad and the G-7 to align with global best practices in mineral security and facilitate knowledge sharing.
What challenges does India face in its mineral diplomacy efforts?
Despite the positive outcomes of India’s mineral diplomacy, several challenges hinder its effectiveness:
- Lack of Private Sector Participation: The absence of a clear roadmap for private sector involvement in the critical minerals supply chain limits India’s ability to leverage domestic capabilities fully.
- Weak Diplomatic Capacity: Insufficient diplomatic resources and expertise in mineral diplomacy pose challenges in forming sustainable international partnerships.
- Need for Comprehensive Strategy: A cohesive strategy that integrates private sector roles and addresses supply chain vulnerabilities is essential for enhancing India’s mineral security efforts. The current lack of such a strategy hampers effective engagement with international partners.
Way forward:
- Develop a Comprehensive Critical Minerals Policy: Formulate a cohesive strategy integrating private sector participation, incentivizing domestic exploration, and addressing supply chain vulnerabilities.
- Strengthen Mineral Diplomacy Capacity: Expand diplomatic resources and expertise in mineral partnerships, focusing on resource-rich nations and multilateral platforms. Establish specialized teams to negotiate sustainable agreements, ensuring secure and diversified supply chains.
Mains PYQ:
Q A number of outside powers have entrenched themselves in Central Asia, which is a zone of interest to India. Discuss the implications, in this context, of India’s joining the Ashgabat Agreement, 2018. (UPSC IAS/2018)
Note4Students
From UPSC perspective, the following things are important:
Mains level: Mines and Mineral; Challenges faced by states;
Why in the News?
Environmental activists protested outside the Madurai District Collector’s office (Tamil Nadu), voicing their opposition to Vedanta’s auction win for Tungsten Mining Rights in Melur, following the Ministry of Mines‘ announcement
Why have there been protests over mining Rights?
- Environmental Concerns: Activists and residents are vehemently opposing the tungsten mining project due to its potential impact on biodiversity. Because of the fears that mining activities could irreparably damage these sites and disrupt local ecosystems, including vital water sources like the Periyar canal.
- Community Impact: Locals fear that mining will threaten their livelihoods, as many depend on agriculture and local resources. The protests have seen significant participation from various villages in the region, highlighting widespread community opposition to the project.
- Political Response: The Chief Minister of Tamil Nadu has called for the cancellation of the mining rights and plans to introduce a resolution in the Tamil Nadu Assembly to formally reject the mining project. He emphasizes that any mining activity in these areas would be unacceptable without state consent.
What does the Ministry of Mines say about Mining?
- Auction of Mineral Blocks: The Nayakkarpatti Tungsten Block covering an area of over 20.16 sq. km. was proposed for auction in February 2024. Inputs were taken from the state government of Tamil Nadu before the block was put up for auction.
- The Ministry cited the Mines and Minerals (Development and Regulation) Act of 1957 as the legal framework enabling this auction process.
- Mineral Richness: The Ministry also noted that the area designated for tungsten mining was found to be rich in scheelite (a crucial ore for tungsten extraction), thus justifying its selection for mining activities.
About the Mines and Minerals (Development and Regulation) Act of 1957:
- The Mines and Minerals (Development and Regulation) Act, 1957, provides a framework for the regulation of mining activities in India, governing the exploration, licensing, and development of minerals except for petroleum and natural gas.
- It empowers the central government to specify major minerals and the state governments to regulate minor minerals, ensuring a structured division of responsibilities in mineral resource management.
- Major minerals are high-value minerals that include coal, lignite, iron ore, bauxite, gold, silver, zinc, copper, manganese, and other ores critical for industrial and strategic purposes.
- Minor minerals are low-value, non-metallic minerals primarily used in construction and local industries, such as sand, gravel, clay, building stones, marble, and slate.
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Is there a Centre-State rift?
Yes, a notable rift exists between the Tamil Nadu government and the Union government regarding this issue.
- Lack of State Consent: The Tamil Nadu government claims it did not provide consent for the auction and had previously communicated concerns regarding environmental implications. In contrast, the Union government contends that there was no formal opposition from Tamil Nadu during the auction process.
- Political Tensions: This situation has led to heightened tensions between the state and central governments, with accusations from Tamil Nadu officials that their concerns were ignored by the Union government when granting mining rights to Hindustan Zinc Limited.
Can the state government supersede the authority of the central government in this matter?
In the context of mining rights and environmental matters, the state government cannot directly override the power of the central government. However, there are several ways available to the state government to influence or challenge the decision made by the Union government.
- Constitutional Framework: The Indian Constitution divides powers between the Union and states; mining regulation is under the Union List, while environmental protection is in the Concurrent List, granting states authority over local environmental issues.
- Biodiversity & Environmental Protection: States can challenge mining projects through laws like the Environmental Protection Act (1986) and Biological Diversity Act (2002), or by passing laws to protect ecologically sensitive areas.
- State Assembly’s Role: The state legislature can pass resolutions expressing opposition to federal actions, and applying political pressure on the Union government, especially with public protests.
- Judicial Review & Coordination: States can seek judicial review if Union actions violate constitutional or environmental laws. While states cannot override central mining rights, cooperative federalism emphasizes consultation between the Union and states.
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Way forward:
- Enhanced State-Central Coordination: Establish a more transparent and binding consultation process between the state and central governments before granting mining rights, ensuring that local concerns and state consent are prioritized, especially for ecologically sensitive areas.
- Thorough Environmental Review: Implement a mandatory, independent Environmental and Social Impact Assessment (ESIA) for mining projects in biodiversity hotspots, incorporating input from local communities, environmental experts, and authorities to address potential ecological and socio-economic impacts.
Mains PYQ:
Q Coastal sand mining, whether legal or illegal, poses one of the biggest threats to our environment. Analyse the impact of sand mining along the Indian coasts, citing specific examples. (UPSC IAS/2019)
Note4Students
From UPSC perspective, the following things are important:
Prelims level: SHAKTI Yojana
Why in the News?
The SHAKTI Yojana plays a crucial role in enhancing the reliability of coal supply for India’s power sector.
About SHAKTI Yojana:
| Details |
• SHAKTI stands for Scheme for Harnessing and Allocating Koyala Transparently in India.
• Introduced by: Ministry of Coal, Government of India.
• Launched in 2018, with amendments in March 2019 and November 2023.
• Purpose: Ensure transparent coal allocation to the power sector, especially stressed power units facing coal shortages. |
| Objective |
Allocate coal supplies to power plants that are unable to secure adequate fuel, ensuring consistent and transparent coal supply to power plants.
Features:
Fuel Supply Agreement (FSA): Coal supplied through FSA with Letter of Assurance (LoA) holders, ensuring continuation of supply at 75% of the Annual Contracted Quantity (ACQ).
Coal Linkages: Linkages granted to State/Central Generating Companies and Independent Power Producers (IPPs) with Long-Term PPAs. |
| Significance |
• Ensures coal supply to stressed units, supporting new power plants and promoting transparency in coal allocation.
• Supports uninterrupted power generation by ensuring consistent fuel supply. |
About India’s Coal Gasification Vision:
To achieve 100 MT of coal gasification by FY 2030, with a focus on sustainable practices and reducing carbon emissions.
- Incentive: Reimburse GST compensation cess on coal used for gasification projects for 10 years, contingent on cess extension beyond FY27.
- Target: Attract both Government PSUs and the Private Sector to drive innovation and investment in coal gasification.
- Process: Entities selected through a transparent bidding process; government support for eligible PSUs and private firms to implement projects.
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PYQ:
[2019] Consider the following statements:
1. Coal sector was nationalized by the Government of India under Indira Gandhi.
2. Now, coal blocks are allocated on lottery basis.
3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3 |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: District Mineral Foundation (DMF);
Mains level: Significance and Scope of DMF;
Why in the News?
The Indian government’s Mines and Minerals Act of 2015, which mandated auctions and established the District Mineral Foundation (DMF), continues to ensure local communities benefit from natural resource-led development.
- DMF after entering its 10th year has amassed almost ₹1 lakh crore, transforming mineral wealth into a development lifeline for these regions.
How did the District Mineral Foundation (DMF) work in India?
- The DMF mandates mining licensees and leaseholders to contribute a portion of their royalty payments to the DMF. The ‘National DMF Portal’ has been introduced to enhance transparency and efficiency.
- It aims to promote sustainable development and welfare for mining-affected communities.
- A District Collector leads the DMF, ensuring that funds are allocated to areas with the greatest need.
- Funds are used for decentralized, community-centric development projects in mining districts.
- As of 2024, around 3 lakh projects have been sanctioned across 645 districts in 23 states. These initiatives focus on improving socio-economic and human development indicators.
About Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):
- Objective: Launched under the DMF, PMKKKY focuses on implementing developmental and welfare projects in mining-affected regions.
- It aims to minimise the negative impacts of mining on local communities and ensure sustainable livelihoods.
- Complementary Approach: PMKKKY works alongside existing state and central government schemes, reinforcing district development goals.
- PMKKKY projects cover healthcare, education, skill development, sanitation, water supply, and sustainable livelihoods.
- It has also empowered women through self-help groups and supported youth skill development initiatives like drone technology training.
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Significance and Scope of DMF in India:
- Community Welfare: DMFs provide direct financial resources for the welfare of communities affected by mining activities, transforming mineral wealth into tangible social benefits.
- Inclusive Development: DMFs empower local communities, with focus on social inclusivity by involving elected representatives and non-elected gram sabha members in governance structures.
- Cooperative Federalism: DMFs are a model of cooperative federalism, converging national, state, and local governance to address mining impacts and foster regional development.
- Innovation and Planning: Various DMFs innovate to maximise project impact, adopting three-year plans for goal-oriented development, establishing dedicated engineering departments, and employing Public Works Department personnel for efficient project execution.
- Sustainability: DMFs aim to align with the Sustainable Development Goals (SDGs), focusing on forest dwellers’ livelihoods, sports infrastructure, and health. They contribute to long-term environmental and socio-economic sustainability.
Way Forward:
- Standardisation and Best Practices: Establish uniform guidelines to standardise successful practices across DMFs while retaining local knowledge, ensuring efficient implementation of long-term, goal-oriented projects.
- Enhanced Integration with National Schemes: Strengthen the integration of DMF activities with ongoing central and state schemes, particularly in aspirational districts, to amplify the socio-economic and environmental benefits in mining-affected regions.
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Mines and Minerals (Development and Regulation) Act of 1957 (MMDR Act);
Mains level: Design of power between Union and state;
Why in the News?
The Supreme Court delivered a significant 8:1 judgment affirming that State Legislatures have the power to tax mining lands and quarries, independent of the Parliament’s Mines and Minerals (Development and Regulation) Act of 1957 (MMDR Act).
About the verdict given by SC
- Judgment Overview: The majority opinion, authored by Chief Justice D.Y. Chandrachud, stated that states derive their taxing authority from Article 246 and Entry 49 of the State List, which pertains to taxation on lands and buildings.
- Distinction Between Tax and Royalty: The Court clarified that royalty paid for mining leases is not considered a tax.
- Royalty is viewed as a contractual obligation between the mining lessee and the lessor, thus not subject to the same regulatory framework as taxes.
- Parliamentary Limitations: The judgment emphasised that the MMDR Act cannot impose limitations on state taxation powers regarding mines and quarries. The Court rejected the argument that Entry 50 of the State List allowed Parliament to impose restrictions on state taxes related to mineral rights.
- Dissenting Opinion: Justice B.V. Nagarathna provided a dissenting opinion, cautioning that allowing states to tax under Entry 49 could lead to double taxation and undermine the specific provisions of Entry 50.
About the Mines and Minerals (Development and Regulation) Act of 1957
- The MMDR Act was enacted to regulate the mining sector in India, ensuring the development and conservation of minerals while balancing the interests of the state and the public.
- The Act provides a comprehensive framework for the licensing and regulation of mines, including provisions for the fixation of royalties on mineral extraction.
- The Act has been a point of contention regarding the extent of state powers to impose taxes on mineral rights, with arguments that it limits state legislative competence in this area.
- The Supreme Court’s recent ruling clarifies that the MMDR Act does not restrict state powers to tax mineral rights, thus resolving conflicts arising from previous interpretations of the Act.
On the division of the power
- Constitutional Framework: The Constitution of India delineates the distribution of powers between the Centre and the States through the Seventh Schedule, which includes the State List and the Union List.
- Entry 49 and Entry 50: Entry 49 allows states to levy taxes on lands and buildings, while Entry 50 pertains specifically to taxes on mineral rights, subject to limitations imposed by Parliament.
- Judicial Clarity: The Supreme Court’s judgment clarifies that states can exercise their taxing powers under both Entries 49 and 50 without interference from the MMDR Act, reinforcing the states’ authority over local resources.
Conclusion: The Supreme Court’s ruling affirms that states can tax mining lands independently of the MMDR Act, highlighting their authority under Article 246 and Entry 49, despite dissenting concerns about double taxation.
Mains PYQ:
Q Though the federal principle is dominant in our Constitution and that priniciple is one of its basic features, but it is equally true that federalism under the Indian Constitution leans in favour of a strong Centre, a feature that militates against the concept of strong federalism. 15M
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Legal Frameworks Governing Coal Mining;
Mains level: Factors Contribute to the Persistence of Illegal Coal Mining;
Why in the News?
On July 13, three workers died of asphyxiation inside an illegal coal mine in Gujarat’s Surendranagar district.
How Prevalent is Illegal Coal Mining in India?
- Illegal coal mining has led to multiple fatalities, including recent incidents in Gujarat, Jharkhand, and West Bengal, highlighting its prevalence and dangers.
- There are 10 workers who have died in illegal mining incidents in Gujarat alone this year, showcasing the ongoing risks associated with this activity.
- Illegal mining is often conducted in abandoned mines or shallow coal seams, particularly in remote areas, where monitoring and enforcement of regulations are weak.
What are the Legal Frameworks Governing Coal Mining in India?
- Coal Mines (Nationalisation) Act, 1973: This act nationalized coal mining in India, regulating who can mine coal and under what conditions.
- Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act): This central legislation governs the mining sector, detailing processes for acquiring mining licenses and regulating mining activities. It empowers state governments to frame rules to prevent illegal mining.
- While the MMDR Act provides a framework, the enforcement and regulation of illegal mining fall under state jurisdiction.
Why is the Responsibility for Addressing Illegal Mining Placed on State Governments?
- Law and Order Issue: Illegal mining is categorized as a law and order problem, which is a subject under the State List of the Constitution, making it the responsibility of state governments to address.
- Limited Central Authority: The Union government often shifts the responsibility to state authorities, citing the decentralized nature of governance in matters of local enforcement and regulation.
What Factors Contribute to the Persistence of Illegal Coal Mining?
- High Demand for Coal: With coal accounting for 55% of India’s energy needs, the high demand often exceeds legal supply leading to illegal mining activities.
- Poverty and Unemployment: Many coal-rich areas are home to impoverished populations who resort to illegal mining as a source of livelihood due to limited job opportunities.
- Weak Regulatory Enforcement: Inadequate monitoring and enforcement of mining regulations in remote areas allow illegal mining operations to flourish.
- Political Patronage: Allegations of political leaders’ involvement in illegal mining operations complicate efforts to curb these activities, as seen in various states.
What Safety Risks Do Workers Face?
- Lack of Safety Equipment: Workers often operate without helmets, masks, or other protective gear, significantly increasing their risk of injury or death.
- Hazardous Working Conditions: Illegal mines are typically unregulated, lacking proper structural support, making them vulnerable to cave-ins, landslides, and explosions.
- Toxic Gas Exposure: Miners are at risk of asphyxiation from inhaling toxic gases like carbon monoxide, as evidenced by recent fatalities in Gujarat.
- Continuous exposure to coal dust and hazardous substances can lead to respiratory issues and chronic health conditions, further endangering workers’ health.
Conclusion: Need to implement advanced surveillance technologies, such as drones and satellite imaging, to monitor and detect illegal mining activities in real-time. This can improve the efficiency of enforcement agencies in identifying and responding to illegal operations swiftly.
Note4Students
From UPSC perspective, the following things are important:
Mains level: Power markets working and Power exchanges in India
Why in the news?
Amid rising summer demand, the government has permitted the trading of excess electricity produced from “linkage coal” within the nation’s power markets.
What is the Power Market?
- A power market is a platform where electricity is bought and sold, enabling generators and consumers to trade electricity based on market-driven prices and conditions.
Types of Markets related to Power exchanges in India include:
- Spot Markets: These include real-time markets (RTM) and day-ahead markets (DAM). RTM allows for immediate buying and selling of electricity, while DAM involves bidding for electricity to be delivered the next day.
- Term-Ahead Markets: These markets facilitate trades for longer durations, ranging from hours to several days in advance, providing more certainty and planning for market participants.
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Their working and Power exchanges in India
- Market Operation: Power exchanges in India operate as platforms where electricity generators (sellers) and consumers (buyers) participate in trading electricity. Generators submit offers indicating the quantity of electricity they can supply at various prices, while buyers submit bids indicating the quantity they wish to purchase at various prices.
- Renewable Energy Certificates (REC): Power exchanges also manage the trading of Renewable Energy Certificates (RECs). RECs represent the environmental attributes of renewable electricity generated and can be sold to utilities to meet their renewable purchase obligations (RPOs).
- Regulation: Power exchanges are regulated by the Central Electricity Regulatory Commission (CERC) in India. The regulatory framework ensures fair and transparent trading practices, oversees market operations and sets rules to promote market integrity.
- Market Dominance: The Indian Energy Exchange (IEX) is the dominant power exchange in India, handling the majority of electricity trading volume. Other exchanges include Power Exchange India Limited (PXIL) and Hindustan Power Exchange Ltd (HPX), though IEX holds more than 90% of the market share.
Their advantages
- Flexibility: Enables generators to respond swiftly to fluctuating electricity demand by selling surplus power at market-driven prices, enhancing grid stability.
- Efficiency: Optimizes utilization of coal-based power generation assets, minimizing wastage and maximizing revenue through market-based transactions.
- Transparency: Promotes transparent pricing mechanisms in the electricity sector, fostering competitive market dynamics and benefiting consumers with potentially lower electricity costs.
The Road Ahead for Power Exchanges:
- Market Coupling: It matches bids from different power exchanges to discover a uniform market clearing price, promoting efficiency and reducing price disparities across regions.It enhances price discovery, market stability, and regional grid integration by providing a reliable reference price for policymakers.
- Capacity Markets: It compensates generators for maintaining available capacity, incentivizing investment in reliable generation infrastructure. They ensure long-term grid reliability, especially during peak demand periods, aligning India’s power market with international standards and attracting investment.
- International Alignment and Competitiveness: India’s adoption of advanced market structures (like market coupling and capacity markets) aims to align with mature international markets.These developments can foster greater competition, attract investment, and enhance overall sector efficiency and reliability.
Mains PYQ:
Q Write a note on India’s green energy corridor to alleviate the problem of conventional energy. (UPSC IAS/2013)
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Critical Minerals, iCET
Why in the News?
What are Critical Minerals?
- Critical minerals are elements that are crucial to modern-day technologies and are at risk of supply chain disruptions.
- These minerals are mostly used in making electronic equipment such as mobile phones, computers, batteries, electric vehicles, and green technologies like solar panels and wind turbines.
- Many of these are required to meet the manufacturing needs of green technologies, high-tech equipment, aviation, and national defence.
List of critical minerals includes:
The centre has released a list of 30 critical minerals for India in 2023:
- Identified Minerals: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, Platinum Group elements (PGE), Phosphorous, Potash, Rare Earth Elements (REE), Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.
- Fertilizer Minerals: Two minerals critical for fertilizer production, phosphorous and potash, are also included in the above list.
Critical Mineral Blocks in India
- Distribution: There are 20 blocks spread across eight states, including Tamil Nadu, Odisha, Bihar, Uttar Pradesh, Gujarat, Jharkhand, Chhattisgarh, and Jammu & Kashmir.
- Types of Licenses: Four blocks are for a Mining License (ML), allowing immediate mining post-clearance. The remaining 16 blocks are for a Composite License (CL), permitting further exploration before potentially converting to an ML.
- Approvals Required: Licensees must obtain various approvals, including forest clearance and environmental clearance.
- Forest Land: Approximately 17% of the total concession area, or 1,234 hectares, is forest land.
India’s Critical Mineral Imports
- Lithium Imports: In FY23, India imported 2,145 tonnes of lithium carbonate and lithium oxide, costing Rs 732 crore.
- Nickel and Copper Imports: The country imported 32,000 tonnes of unwrought nickel and 1.2 million tonnes of copper ore, costing Rs 6,549 crore and Rs 27,374 crore, respectively.
- Import Dependence: India relies entirely on imports for lithium and nickel, and 93% for copper.
Country-wise dependence:
- China: India heavily relies on China for the import of critical minerals like lithium, cobalt, nickel, and graphite.
- Australia: India is actively engaged with Australia for acquiring mineral assets, particularly lithium and cobalt, to secure its supply chain for critical minerals.
- Argentina, Bolivia, and Chile: India is engaging with these countries, known for their reserves of battery metals like lithium and cobalt, to diversify its sources for critical minerals.
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India’s Strategic Mineral Initiatives
- Amendments to the Mines and Minerals (Development and Regulation) Act, 1957 support expanded exploration.
- Establishment of Khanij Bidesh India Ltd. (KABIL) with equity from National Aluminium Company Ltd, Hindustan Copper Ltd, and Mineral Exploration and Consultancy Ltd for global mineral asset acquisition.
International Collaborations and Partnerships
- India joined the U.S.-led mineral security partnership to secure critical mineral supply chains.
- Creation of an India-U.S. advanced materials research forum to foster collaboration in universities, laboratories, and private sectors.
- Bilateral technology collaboration on neodymium-iron-boron and studies on minerals like lithium, titanium, gallium, and vanadium.
Back2Basics: Indo-US Comprehensive Economic and Trade Agreement (iCET)
|
Details |
| Initiation |
Announced in May 2022, officially launched in January 2023 |
| Management |
Overseen by the National Security Councils of India and the US |
| Objectives |
Enhance bilateral cooperation in critical and emerging technologies |
| Focus Areas of the Initiative |
- AI Research Agency Partnership
- Defense Industrial and Technological Cooperation
- Innovation Ecosystems
- Semiconductor Ecosystem Development
- Cooperation on Human Spaceflight
- Advancement in 5G and 6G Technologies
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| Key Achievements |
- Quantum Coordination Mechanism
- Public-private dialogues on telecommunications and AI
- MoU on semiconductor supply chain
- Defense industrial cooperation roadmap
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| Upcoming Initiatives |
- Finalization of major jet engine deal
- Launch of India-US Defence Acceleration Ecosystem (INDUS-X)
- Strategic Trade Dialogue establishment
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PYQ:
[2019] With reference to the management of minor minerals in India, consider the following statements:
- Sand is a ‘minor mineral’ according to the prevailing law in the country.
- State governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
- State Governments have the power to frame rules to prevent illegal mining of minor minerals.
Which of the statements given above is/are correct?
(a) 1 and 3
(b) 2 and 3
(c) 3 only
(d) 1, 2 and 3 |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Critical Minerals, Mineral Security Partnership (MSP)
Mains level: NA
Why in the news?
The Ministry of Mines has organized a pivotal summit in New Delhi aimed at fostering collaboration, sharing knowledge, and driving innovation in Critical Mineral beneficiation and processing.
What are Critical Minerals?
- Critical Minerals are indispensable for economic development and national security, with their scarcity or concentration in specific regions posing potential supply chain vulnerabilities.
- The declaration and identification of Critical Minerals is an ongoing process, influenced by technological advancements, market dynamics, and geopolitical factors.
Critical Minerals in India:
- India has identified 30 Critical Minerals (July 2023) based on factors like disruption potential, import reliance, and cross-sectoral usage.
- Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, Rare Earth Elements, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.
Global Perspective:
Various nations have outlined their lists of Critical Minerals based on unique circumstances:
- The US recognizes 50 minerals critical for national security and economic development.
- Japan has identified 31 minerals crucial for its economy.
- The UK, EU, and Canada have their respective lists, reflecting their strategic priorities.
India became the 14th member of the Mineral Security Partnership (MSP) in June 2023.
- MSP seeks to bolster critical minerals supply chains to support economic prosperity and climate objectives.
- It seeks to ensure that critical minerals are produced, processed and recycled by catalyzing investments from governments and private sector across the full value chain.
- Members: The other member countries are United States, Australia, Canada, Finland, France, Germany, Italy, Japan, Norway, the Republic of Korea, Sweden, the United Kingdom and the European Commission.
Note: Copper, gold and silver are not on the list of minerals under MSP (Wiki). |
Various Government Initiatives:
- MMDR Act Amendment (2023): 24 minerals were designated as critical and strategic under the Mines and Minerals (Development and Regulation) Act.
- National Mineral Policy (2019): The updated policy emphasizes the exploration and exploitation of Critical Minerals to harness India’s mineral potential effectively.
- Khanij Bidesh India Ltd (KABIL): A joint venture comprising National Aluminium Company Ltd (NALCO), Hindustan Copper Ltd (HCL), and Mineral Exploration Corporation Ltd (MECL), KABIL aims to secure a consistent supply of Critical Minerals by acquiring and developing assets overseas.
- Indian Rare Earths Limited (IREL): It is a PSU that plays a significant role in the research and production of rare earth minerals.
India’s Critical Mineral Imports:
- Lithium Imports: In FY23, India imported 2,145 tonnes of lithium carbonate and lithium oxide, costing Rs 732 crore.
- Nickel and Copper Imports: The country imported 32,000 tonnes of unwrought nickel and 1.2 million tonnes of copper ore, costing Rs 6,549 crore and Rs 27,374 crore, respectively.
- Import Dependence: India relies entirely on imports for lithium and nickel, and 93% for copper.
Country-wise dependence:
- China: India heavily relies on China for the import of critical minerals like lithium, cobalt, nickel, and graphite.
- Australia: India is actively engaged with Australia for acquiring mineral assets, particularly lithium and cobalt, to secure its supply chain for critical minerals.
- Argentina, Bolivia, and Chile: India is engaging with these countries, known for their reserves of battery metals like lithium and cobalt, to diversify its sources for critical minerals.
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PYQ:
[2019] With reference to the management of minor minerals in India, consider the following statements:
- Sand is a ‘minor mineral’ according to the prevailing law in the country.
- State governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
- State Governments have the power to frame rules to prevent illegal mining of minor minerals.
Which of the statements given above is/are correct?
(a) 1 and 3
(b) 2 and 3
(c) 3 only
(d) 1, 2 and 3 |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: CCO and its Functions
Mains level: NA
Why in the news?
The Coal Controller’s Organisation (CCO) recently held inspections of Coal Mines to ensure the accuracy of Coal class and grade declarations.
Coal Sector in Indian Economy:
- The Indian coal sector is one of the 8 core sectors contributing heavily to the economic development of India.
- In India, there are 4 grades of coal available: Lignite, Bituminous, Sub-Bituminous, and Anthracite, and out of which Anthracite is the highest grade of coal.
- More than 70% of Coal reserves in India are mainly found in the South-Central region i.e. in Orissa, Chhattisgarh, and Jharkhand.
- India is the second-largest producer of Anthracite globally after China.
- The mining sector accounts for more than 2% contribution to the total GDP of India.
- India, had a global share of Coal production nearly 9%.
- India’s share of coal in major imports in FY 2023 was estimated at 8%.
- India exports coking coal to neighboring countries, including Nepal, Bangladesh, and Bhutan.
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About Coal Controller’s Organisation (CCO)
- The CCO was established in 1975 under the Coal Mines (Conservation and Development) Act, 1974.
- It operates under the Ministry of Coal.
- It is headquartered in Kolkata and field offices at Dhanbad, Ranchi, Bilaspur, Nagpur, Sambalpur, Kothagudem, and Asansol.
Functions of CCO
- Regulatory Oversight: Regulates coal industry activities, ensuring compliance with laws and policies.
- Inspections: It conducts inspections of collieries to ensure the accuracy of coal class and grade declarations under the Colliery Control Rules, 2004 (Amended in 2021).
- Quality Control: Establishes and enforces standards for coal quality through testing and inspection.
- Grading and Classification: Categorizes coal into grades based on quality and intended use.
- Licensing and Permissions: Issues licenses and permits to coal producers, traders, and consumers.
- Data Collection and Analysis: Collects and analyzes data on coal production, consumption, and market trends.
- Research and Development: Conducts or sponsors R&D to improve mining techniques and coal quality.
- Conservation and Sustainability: Formulates policies for coal resource conservation and sustainable development.
- Enforcement and Compliance: Ensures compliance with coal-related regulations through inspections and enforcement actions.
Grades of Coal in India
The gradation of coal is based on-
- Non-Coking Coal: Based on Gross Calorific Value (GCV).
- Coking Coal: Ash Content
- Semi Coking /Weakly Coking Coal: Ash plus Moisture Content
What is Coke?
- Coke is a solid carbonaceous material derived from heating coal in the absence of air.
- It is a porous, hard, black substance with a high carbon content and few impurities.
- Coke is primarily used as a fuel and as a reducing agent in the process of smelting iron ore to produce steel in a blast furnace.
Types of Coal based on Coking ability
- Non-Coking Coal: Non-coking coal, also known as thermal coal, is coal that does not have the ability to undergo conversion into coke when heated in the absence of air. It is primarily used for power generation in thermal power plants, as well as for other industrial applications such as cement production and heating.
- Coking Coal: Coking coal, also known as metallurgical coal, is a type of coal that possesses the necessary properties to undergo conversion into coke when heated in the absence of air. Coking coal is characterized by its high carbon content, low ash content, and ability to form a strong, porous coke when heated.
- Semi Coking / Weakly Coking Coal: Semi-coking or weakly coking coal is a coal type that falls between non-coking coal and coking coal in terms of its properties. While it does not fully qualify as coking coal due to certain limitations in its coking properties, it exhibits some degree of coking ability when heated.
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PYQ:
[2022] In India, what is the role of the Coal Controller’s Organization (CCO)?
- CCO is the major source of Coal Statistics in Government of India.
- It monitors progress of development of Captive Coal/Lignite blocks.
- It hears any objection to the Government’s notification relating to acquisition of coal-bearing areas.
- It ensures that coal mining companies deliver the coal to end users in the prescribed time.
Select the correct answer using the code given below:
(a) 1, 2 and 3
(b) 3 and 4 only
(c) 1 and 2 only
(d) 1, 2 and 4 |
Note4Students
From UPSC perspective, the following things are important:
Prelims level: Critical Minerals
Mains level: NA
Why in the news?
- India is looking for cobalt and other critical minerals in Zambia, Namibia, Congo, Ghana and Mozambique. It is still engaging with Australia for lithium blocks.
- Critical minerals, including lithium and cobalt, are crucial for technology, manufacturing and other industries.
What are Critical Minerals?
- Critical minerals are elements that are crucial to modern-day technologies and are at risk of supply chain disruptions.
- These minerals are mostly used in making electronic equipment such as mobile phones, computers, batteries, electric vehicles, and green technologies like solar panels and wind turbines.
- Many of these are required to meet the manufacturing needs of green technologies, high-tech equipment, aviation, and national defence.
List of critical minerals includes:
The centre has released a list of 30 critical minerals for India in 2023:
- Identified Minerals: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, Platinum Group elements (PGE), Phosphorous, Potash, Rare Earth Elements (REE), Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.
- Fertilizer Minerals: Two minerals critical for fertilizer production, phosphorous and potash, are also included in the above list.
Critical Mineral Blocks in India
- Distribution: There are 20 blocks spread across eight states, including Tamil Nadu, Odisha, Bihar, Uttar Pradesh, Gujarat, Jharkhand, Chhattisgarh, and Jammu & Kashmir.
- Types of Licenses: Four blocks are for a Mining License (ML), allowing immediate mining post-clearance. The remaining 16 blocks are for a Composite License (CL), permitting further exploration before potentially converting to an ML.
- Approvals Required: Licensees must obtain various approvals, including forest clearance and environmental clearance.
- Forest Land: Approximately 17% of the total concession area, or 1,234 hectares, is forest land.
India’s Critical Mineral Imports
- Lithium Imports: In FY23, India imported 2,145 tonnes of lithium carbonate and lithium oxide, costing Rs 732 crore.
- Nickel and Copper Imports: The country imported 32,000 tonnes of unwrought nickel and 1.2 million tonnes of copper ore, costing Rs 6,549 crore and Rs 27,374 crore, respectively.
- Import Dependence: India relies entirely on imports for lithium and nickel, and 93% for copper.
Country-wise dependence:
- China: India heavily relies on China for the import of critical minerals like lithium, cobalt, nickel, and graphite.
- Australia: India is actively engaged with Australia for acquiring mineral assets, particularly lithium and cobalt, to secure its supply chain for critical minerals.
- Argentina, Bolivia, and Chile: India is engaging with these countries, known for their reserves of battery metals like lithium and cobalt, to diversify its sources for critical minerals.
|
PYQ:
2019: With reference to the management of minor minerals in India, consider the following statements:
- Sand is a ‘minor mineral’ according to the prevailing law in the country.
- State governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
- State Governments have the power to frame rules to prevent illegal mining of minor minerals.
Which of the statements given above is/are correct?
- 1 and 3
- 2 and 3
- 3 only
- 1, 2 and 3
Practice MCQ:
Consider the following statements:
- Critical minerals are those elements which are crucial to modern-day technologies and are at risk of supply chain disruptions.
- India has notified 30 elements in the Critical Minerals List.
- Fertilizer minerals Phosphorous and potash are also included in the Critical Minerals List.
How many of the given statements is/are correct?
- One
- Two
- Three
- None
Note4Students
From UPSC perspective, the following things are important:
Prelims level: COP-28:
Mains level: indigenize supply chains for clean energy
Central Idea:
India aims to balance economic growth and environmental concerns as it strives to become the fastest-growing economy, focusing on decarbonizing the power sector, ensuring development, and securing energy needs. Coal remains crucial, but strategies involve managing existing assets, enhancing coal fleet flexibility, incentivizing energy storage, and promoting domestic manufacturing of renewable energy technologies.
Key Highlights:
- India is actively involved in climate action, reducing fossil fuel subsidies, and planning a threefold increase in renewable power capacity by 2030.
- Coal, despite being essential, is slated to persist until India attains developed country status.
- Strategies include better managing thermal plant outages, increasing coal fleet flexibility, incentivizing energy storage, and promoting domestic clean energy manufacturing.
Key Challenges:
- Balancing economic growth with the imperative to phase down unabated coal.
- Uncertainty in predicting India’s coal reliance due to rising electricity demand.
- Adapting existing coal plants for flexibility in integrating renewable energy.
- Compensating entities for energy storage services and boosting domestic value and job creation in clean energy.
Key Terms:
- COP-28: The 28th Conference of the Parties, relevant to global climate change negotiations.
- Unabated Coal: Coal burning without a reduction in carbon emissions.
- Renewable Power Generation: Electricity from sustainable sources like wind, solar, and hydropower.
- Atmanirbhar: A Hindi term signifying self-reliance, commonly used in promoting domestic manufacturing.
Key Phrases:
- “Decarbonizing the power sector while ensuring economic development and energy security.”
- “Reducing overall fossil fuel subsidies” and “tripling installed renewable power generation capacity by 2030.”
- “Managing thermal plant outages during peak demand periods.”
- “Increasing the flexibility of the existing coal fleet to integrate more renewable energy into the grid.”
- “Indigenizing supply chains for battery storage and renewable energy technologies.”
Key Quotes:
- “India has reduced overall fossil fuel subsidies by 76% between FY14 and FY22.”
- “Coal will remain a vital energy source until India reaches the status of a developed country.”
- “Entities deploying batteries must be compensated for the value they bring to grid operation.”
- “Boosting domestic value and job creation in clean energy will mitigate concerns associated with disruptions in the global supply chain.”
Key Statements:
- “To keep the economy powered while decarbonizing, India must use existing assets better and invest in energy storage capabilities.”
- “Improving availability and utilization of existing plants can mitigate the need for investments in new thermal assets.”
- “Indigenizing supply chains for clean energy will support exports and domestic value additions, mitigating concerns of global supply chain disruptions.”
Key Examples and References:
- “In 2023, coal-based power plants in India witnessed unplanned outages during peak demand days.”
- “The PLI scheme committed funds to solar manufacturing, supporting domestic value additions.”
Key Facts and Data:
- “India reduced overall fossil fuel subsidies by 76% between FY14 and FY22.”
- “India produced coal worth substantial amounts in FY22, providing significant revenues to the government.”
- “The PLI scheme committed funds to solar manufacturing, supporting potential domestic value addition.”
Critical Analysis:
- The article underscores the tension between economic growth and environmental concerns in India’s energy strategy.
- Emphasizing strategies for managing existing assets and enhancing coal fleet flexibility reflects a pragmatic approach to the transition to renewables.
- Highlighting the importance of incentivizing energy storage services and promoting domestic manufacturing underscores the need for a comprehensive and sustainable energy policy.
Way Forward:
- Prioritize transparent assessments of long-term opportunity costs of conventional power sources.
- Focus on affordable electricity for all segments of the economy.
- Build on the success of the PLI scheme to further indigenize supply chains for clean energy.
- Implement policies encouraging flexibility in the coal fleet and compensating entities for energy storage services.
- Continue investing in renewable energy and storage technologies to align with global decarbonization commitments while ensuring energy security.
