New Delhi : Anil Agarwal, Chairman of Vedanta Limited, has called for urgent reforms to accelerate the operationalization of auctioned mining blocks in India, warning that delays are undermining the country’s mineral security and economic potential.
In a recent LinkedIn post, Agarwal highlighted that despite significant progress in auctioning mining assets over the past decade, a vast majority remain inactive. According to him, only 82 out of 592 auctioned blocks are currently producing, leaving nearly 85% non-operational.
A Growing Strategic Concern
Agarwal stressed that the issue comes at a critical time, as global energy and resource supply chains face mounting uncertainty. He noted that nearly 50% of India’s $400 billion import bill is spent on natural resources such as minerals, metals, and hydrocarbons—resources that could potentially be sourced domestically.
“This creates jobs in other countries. We should create them here,” Agarwal said, emphasizing the missed opportunity for employment generation within India.
Key Bottlenecks Identified
The Vedanta chairman outlined three major hurdles preventing mining blocks from becoming operational:
- Land acquisition challenges, often slowed by procedural complexities
- Delays in regulatory approvals, including environmental and forest clearances
- High auction premiums, which in some cases make projects commercially unviable
These factors, he argued, have collectively stalled progress even after successful auctions.
Reform Proposals
To address these challenges, Agarwal proposed a series of reforms aimed at speeding up project execution:
- Technology-driven land acquisition systems, enabling direct digital payments to landowners
- Simplified approval processes, including reduced reliance on public hearings in certain cases
- Shift toward self-certification and trust-based regulation to cut bureaucratic delays
- Capping auction premiums at 60%, ensuring financial viability for developers
He pointed to recent government initiatives in critical minerals as examples of how streamlined processes can accelerate development.
Economic and Employment Impact
Agarwal emphasized that unlocking India’s natural resource potential could have far-reaching economic benefits. The mining and metals sector, he said, has the capacity to generate large-scale employment, particularly for women, while strengthening domestic industries.
He added that India has the geological potential to emerge as a global hub for minerals, metals, and hydrocarbons—if structural bottlenecks are addressed in time.
Aligning with National Vision
Agarwal concluded by aligning his recommendations with Prime Minister Narendra Modi’s vision of an “Atmanirbhar Bharat” (self-reliant India), urging policymakers and industry stakeholders to act decisively.
“This is India’s best time and opportunity,” he said, calling for a unified push to unlock the sector’s full potential.
Bottom Line: With global resource security becoming increasingly critical, industry leaders like Anil Agarwal are urging India to move faster in converting policy wins into on-the-ground production—potentially reshaping the country’s economic and strategic landscape.