The Indian mining sector will emerge stronger with a better and more transparent mining policy and according to McKinsey Report, the metals and mining sector can contribute to $150 billion per annum to GDP.  

The two day international conference ?Global Mining Summit? kick-started alongside the four day International Mining & Machinery Exhibition with a specific focus on exploration, technology, policy frameworks and emerging business opportunities in the Indian mining and coal sectors. Organised by the Confederation of Indian Industry (CII) in association with the Union Ministry of Mines and Coal India, speakers at the summit called for a greater synergy between global key industry players in this sector. Speaking at the inaugural session, Partha Chatterjee, Minister-In-Charge, Commerce & Industry, IT, PE & IR and Parliamentary Affairs, Government of West Bengal, pointed out that the mining industry, which is one of the largest employers of the country provides employment to about a million people and is pitched to grow by 5 per cent by 2020.

The Indian mining sector will emerge stronger with a better and more transparent mining policy, predicted SK Srivastava, Secretary, Ministry of Coal, Government of India, in his address at the CII Global Mining Summit 2012 at Kolkata. He said 81 per cent of the current energy requirement of the country is met through thermal power based plants. Of the rest, 15 per cent is met from hydro sources and 4 per cent from nuclear sources. Currently, the government is looking at resolving various issues to increase the proportion of hydro and nuclear based energy in the country?s total energy supply besides considering the role to be played by gas.

According to him, the dwindling compound growth rate in the 11th Five Year Plan has been due to several external factors. However, Srivastava asserted that Coal India would surely achieve the target it has set for the 12th Five year Plan. He observed that private participation in coal mining has helped private players to appreciate the role played by Coal India. Srivastava highlighted some opportunities, which he said, will attract the private sector in coal mining. On the Mining Development Order (MDO) approach, the Coal Secretary said Coal India is in touch with the Finance Ministry to improve the bidding document. The foreign investors can also participate in MDO, he added.

VK Arora, Chairman, CII Mining & Construction Equipment Division, pointed out that, ?The Central government is working on the Mining Bill, which has undergone several iterations in order to offer benefits to all stakeholders. We hope that the various points of discussion will be resolved expeditiously.? He stated that the need of the hour is to infuse state-of-the-art technology into the processes and equipment so as to make it future ready and to promote a dedicated skill set through training and skill development that will meet the needs of mining sector. With India?s metal and mining industry estimated at $106.4 billion in 2010, the contribution of the sector can be raised to 8 per cent of GDP, provided investment is facilitated.

KD Diwan, CMD, Hindustan Copper, while delivering his address said that the GDP contribution of the mining sector needs to be increased to 8 per cent to accelerate economic development of the country. He identified some of the challenges faced by the sector like the procedural delays and inadequate geological mapping. He informed that Hindustan Copper is intensifying efforts to increase the copper resource in the country.

Louis de Leon, President, Mining Products Division, Caterpillar Inc, in his presentation highlighted that per capita growth the world over drives infrastructure and energy. According to him, India?s ability to improve infrastructure is critical for the sustainability of its high pace for economic growth. ?India is one of the largest growing markets which is being eyed by many global investors?, stated Leon. Demand for iron ore coal, copper etc is expected to be main drivers of global capex.