100% FDI in Mining sector to reach new milestones
12 Aug 2022
2 Min Read
CW Team
The rise in infrastructure development and automotive production is driving growth in the
metals and mining sector in India. India has a vast mineral potential with mining leases
granted for a longer duration of 50 years. As of FY22, the number of reporting mines in India
was estimated at 1,245, of which reporting mines for metallic minerals were estimated at 525
and non-metallic minerals at 720.
In FY21, India鈥檚 crude steel production stood at 102.49 million tonnes (MT) and in
September 2021, production of hot metal, crude steel, and saleable steel by SAIL stood at
1.55 MT, 1.44 MT and 1.46 MT, respectively.
India is the world's second-largest coal producer as of 2021 and the world's second-largest crude steel producer, 2020, with an output of 99.6 MT.
Coal production in the country stood at 715.95 MT in FY21 and in FY22 (until October),
Coal India (CIL) produced 299.61 MT of coal鈥攁pproximately 16.7 MT more than that in the
same period last year
In the first quarter of FY22, iron ore exports reached $1.7 billion, registering an increase of
168% YoY with its production in the country standing at 189 MT in FY21. According to the
Directorate General of Commercial Intelligence & Statistics, in FY22 (until August 2021),
iron ore exports reached $2.23 billion, registering an increase of 21.8% YoY.
The Government of India has allowed 100% foreign direct investment (FDI) in the mining
sector and exploration of metal and non-metal ores under the automatic route, which will
propel growth in the sector. Power and cement industries also aid growth in the metals and
mining sector.
The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) has been
amended through the Mines and Minerals (Development and Regulation) Amendment Act,
2021, which has been notified on 28.03.2021, for giving a boost to mineral production.
The MCR, 2016 has been amended through Minerals (Other than Atomic and Hydro Carbons
Energy Mineral) Concession (Fourth Amendment) Rules, 2021 on November 2, 2021.
The rise in infrastructure development and automotive production is driving growth in the
metals and mining sector in India. India has a vast mineral potential with mining leases
granted for a longer duration of 50 years. As of FY22, the number of reporting mines in India
was estimated at 1,245, of which reporting mines for metallic minerals were estimated at 525
and non-metallic minerals at 720.
In FY21, India鈥檚 crude steel production stood at 102.49 million tonnes (MT) and in
September 2021, production of hot metal, crude steel, and saleable steel by SAIL stood at
1.55 MT, 1.44 MT and 1.46 MT, respectively.
India is the world's second-largest coal producer as of 2021 and the world's second-largest crude steel producer, 2020, with an output of 99.6 MT.
Coal production in the country stood at 715.95 MT in FY21 and in FY22 (until October),
Coal India (CIL) produced 299.61 MT of coal鈥攁pproximately 16.7 MT more than that in the
same period last year
In the first quarter of FY22, iron ore exports reached $1.7 billion, registering an increase of
168% YoY with its production in the country standing at 189 MT in FY21. According to the
Directorate General of Commercial Intelligence & Statistics, in FY22 (until August 2021),
iron ore exports reached $2.23 billion, registering an increase of 21.8% YoY.
The Government of India has allowed 100% foreign direct investment (FDI) in the mining
sector and exploration of metal and non-metal ores under the automatic route, which will
propel growth in the sector. Power and cement industries also aid growth in the metals and
mining sector.
The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) has been
amended through the Mines and Minerals (Development and Regulation) Amendment Act,
2021, which has been notified on 28.03.2021, for giving a boost to mineral production.
The MCR, 2016 has been amended through Minerals (Other than Atomic and Hydro Carbons
Energy Mineral) Concession (Fourth Amendment) Rules, 2021 on November 2, 2021.
Next Story
Reliance, Diehl Advance Pact for Precision-Guided Munitions
Diehl Defence CEO Helmut Rauch and Reliance Group鈥檚 Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence鈥檚 long-term commitment to the Indian market and its support for the Indian Government鈥檚 Make in India initiative. The partnership鈥檚 current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the 鈥淰ulc..
Next Story
Modis Navnirman to Migrate to Main Board, Merge Subsidiary
Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company鈥檚 growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..
Next Story
Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025
The Bharat InvITs Association鈥檚 industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States鈥� share of global activity below 15 per cent. Meanwhile, in..
