Since the palaeolithic age, mining in India has been an industry that acts as the backbone of the nation. Coal, iron ore, bauxite, mica, etc. are widely excavated and adds to the Indian economy. The technology has seen a boom with mechanisation being promptly put to device and new deposits being explored. Companies like Vedanta, Reliance, Rio Tinto etc are also seeking and grasping an opportunity to operate mines in India.
The present scenario though is marred by scams, corruption and heavy losses for a number of companies that has impacted not only material supply but also the present scope for talented mining engineers of India within the nation. During the NDA and UPA government that ruled since 1992, the mine allocations have been found out to be illegally distributed. The mines were allocated to the companies whose bidding was much lower than their higher counterparts. The Supreme court saw discrepancy in the allotment system and sensed some under the table business that allotted mines to companies who had lost the bid. This scam was named as Coalgate in 2012. Alongside, a number of prospering metal mines have been ordered to close down due to lease expiration or economic recession.
Owing to the surfacing of a scam worth billions, the Supreme court decided on cancelling all the allotments that are under the radar. Thus, a staggering number of 143 coal mines have been ordered to close down immediately and the respective mine owners have lost their bid. Out of this more than 40 are at the verge of starting production or have started producing. These mines have been ordered to operate under Coal India Limited without hindrance till the new bidding gets over. Though the new allocations are hoped to be over within one year, the losses to the companies and reallocations has left a steep road uphill.
Presently, the decisions of the Supreme Court has left a number of companies with heavy losses though the scam had earned them billions two decades ago. A number of smaller companies are at verge of shut down. This has affected the working of other working mines too this year, a number of thermal power plants saw decrease in coal availability, making the electricity production an issue of concern. Captive mines have been gravely affected and thus the respective plants.
Besides, the unstable condition of coal mining industry, the metal mines are striving to get enough lease periods. A number of mines of Tata Steel, SAIL, Adhunik etc have lost their mines in Singbhum region, Karnataka, etc. and the fluctuating market value of Iron ore, copper etc has been no less a factor. Thus the mining industry as whole is in the midst of a crackdown but it also has an opportunity hidden in disguise.
Presently most of the private companies are suffering shear losses but it has left more mines under government undertaking. Along with that, Coal India has also announced to sell out 10% of its share to private sectors. This has affected the present placements of mining engineers too as the requirement of new recruitment has seen a grave dip and PSUs have decided not to visit college campuses for placement rather take aptitude exams as a whole.
The future has a lot in store even after all that the industry has gone through. As soon as new allotments get over, new companies with new mines will pop up. This will showcase a sudden boom not only for the companies but for the aspiring mining engineers too as the demand will increase exponentially. The metal mines are also looking forward to negotiations with the government and many others are looking for expansions. Hopefully all these happens within an year and the complete scenario changes upside down.
Indian mining industry has certainly been one of the most prosperous industry and with the new government at the centre, it is being hoped that Mr. Narendra Modi will promote and invite foreign companies to open mines in India with improved technology and production. He has already given signs of visiting Australia and opening the doors for Rio Tinto in Orissa and other places. Hopefully, a number of other leading companies will join the trend. India was once called "a golden bird" and the new future seems once again to suit the expression. Its a land of opportunities and the mining engineers here are the creators.