Vedanta chairman, Anil Agarwal calls for faster mining reforms to unlock India’s resource potential
Anil Agarwal, Chairman, Vedanta Limited, has shared a post on LinkedIn emphasising the urgent need to accelerate the operationalisation of auctioned mining blocks in India to enhance mineral security, reduce import dependence, and unlock large-scale employment opportunities. Considering the global crisis, he emphasised how natural resources remain central to economic growth and strategic resilience, calling for technology-led land acquisition, simplified approvals, and commercially viable auction frameworks. In the post, Agarwal noted that despite significant progress in mineral auctions over the past decade owing to the Government’s role as a strong facilitator, a large proportion of blocks still remain non-operational, limiting India’s ability to leverage its geological potential at a time when global energy and resource security have become critical priorities.
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In his post, he wrote: “Did you know that 85 per cent of the mining blocks auctioned in the last ten years are not operational? Only 82 out of 592 are producing output. And this is at a time when 50 per cent of our total import bill worth USD 400 billion is on account of resources from below the ground. This creates jobs in other countries. We should create them here.
Why are so many blocks not operational? Three reasons. First, difficulty in land acquisition. Second, a lack of approvals, including environment and forest clearances. Third, extraordinary premiums paid for some mines make them commercially unviable.
At a time of global crisis, energy and mineral security are a strategic imperative. After the auction, work must start immediately on the ground. For land acquisition, there is a need for a technologically enabled system where payment can be transferred to landowners directly at an appropriate price. Today is the time of digital, so let’s use that. As the Government has done for critical minerals, a public hearing may not be necessary in most cases. Approvals must move to self-certification and trust-based regulation. And this Government, which is so production-minded, should look to keep the premium no more than 60 per cent to ensure commercial viability.
India has all the potential to be a global hub for minerals, metals and hydrocarbons. This sector can be a catalyst to eradicate unemployment, especially for women. We are pleased that the Government is a facilitator. This is India’s best time and opportunity. Let’s give this a big focus and come together to build an Atmanirbhar Bharat, which is our Prime Minister’s vision.”
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Note: This article has been issued by Vedanta Limited and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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