New Delhi, March 20 Vedanta Chairman Anil Agarwal has highlighted three key challenges hindering the operationalization of mines: difficulties in land acquisition, delays in obtaining environmental and forest clearances, and high premiums that make some mines commercially unviable – and urged for faster execution after auctions to strengthen energy and mineral security.
This statement comes amid increasing global uncertainties in the Middle East.
Agarwal also called for immediate policy interventions to increase domestic production and strengthen resource security.
Drawing attention to the current state of the sector, Agarwal noted that nearly 85 per cent 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 is happening at a time when approximately 50 per cent of the country's USD 400 billion import bill is driven by dependence on imported natural resources, resulting in significant job creation outside the country.
Emphasizing the strategic importance of energy and mineral security amid global uncertainties, he advocated for faster execution after auctions.
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 per cent 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 a self-reliant India.