The Indian mining sector is expected to expand the country’s GDP by 1% in FY 17 with the overall mining sector on a growth path, Balvinder Kumar, secretary ministry of mines said on the sidelines of the Indian Mining and Machinery Exhibition organised by CII. Kumar said the country’s mining sector grew 9% last year and this year we are expecting it to grow at a higher rate.
The mining industry contributes 2.2% to 2.5% of the GDP but going by the GDP of the total industrial sector it contributes around 10% to 11%.
Kumar said while iron ore mining grew 21%, bauxite mining grew 27% and chromite mining grew 35% in 2016. In the first seven months of this fiscal, production of iron ore increased 25% and production of other minerals are also on the growth path. “We expect that mining sector will be able to expand the country’s GDP by 1%,” Kumar said..
He said of the65 coal blocks that were auctioned, auction of 47 blocks were annulled for problems of land acquisition, reserves and sales price. These 47 blocks will be put to auction once again, Kumar said. He said the government has earned Rs 70,000 crore by auctioning 18 blocks. The government expects to earn Rs 40,000 crore from the up coming auction which it has lined up.
Kumar said 40-50 blocks might be offered for auction of which 15 blocks are from Karnataka, Kumar said.