Vedanta Chairman calls for mining reforms amid geopolitical risks

New Delhi: Vedanta Chairman Anil Agarwal has flagged three key bottlenecks stalling operationalisation of mines-land acquisition challenges and delays in environmental and forest clearances, and high premiums rendering some mines commercially unviable — and urged faster post-auction execution to bolster energy and mineral security.

The statement comes amid escalating global uncertainties amid heightened tensions in West Asia.

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 emphasised that this comes at a time when approximately 50 per cent of the country’s $400 billion import bill is driven by dependence on imported natural resources, resulting in significant job creation outside the country.

Emphasising the strategic importance of energy and mineral security amid global uncertainties, he advocated for faster post-auction execution.

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 an self reliant

Bharat.