India has explored only 13% of its 5,75,000 sq. kms of land with geological potential. Why?
- Prevalence of Licence-raj system at the state level coupled with the bidding methods to get the right to mine, exploration is already cost-intensive and risky, the explored deposited land. This also act as deterrent for private investors in this sector.
- Corruption around free allocation of mining which further discourages stakeholders to take their steps back.
- Technological impediments i.e. advanced technology not available widely
- Naxal area and ideological opposition to State led development
- Reducing confidence in government due to inconsistencies like Niyamgiri-Vedanta episode where executive and judiciary were at opposite ends, Coalgate episode
- Increased environmentalism and NGOs stir in masses which may at times also be due to vested interests.
- Higher imports and lower quality of indigenous deposits like bituminous coal, high import of gold, etc.