Jharkhand’s Mineral Exploration Lags: CAG Report

Mineral-rich Jharkhand is falling behind in harnessing its natural wealth. A recent CAG (Comptroller and Auditor General) audit has put a spotlight on how only a fraction of the approved mineral exploration projects were completed in the state over a 5-year period. This blog explores the implications of the Jharkhand Mineral Exploration delays, as highlighted in the CAG report.

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📰 What the CAG Report Says

Between 2017 and 2022, the Jharkhand State Geological Programming Board (JSGPB) cleared 78 mineral exploration projects. Shockingly, only 24 projects were completed — a completion rate of just 31%.

This poor performance is attributed to a range of systemic issues, including:

• Bureaucratic red tape

• Environmental clearance delays

• Staffing shortages

• Mapping restrictions due to “No Mining Zones”

One prominent example is the Noamundi iron ore project, which was approved in 2019 but has yet to begin, despite its enormous economic potential.

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📉 Key Highlights from the Report

• ✅ Only 31% of approved mineral projects were completed in a five-year span.

• 🛑 Forest clearance delays are a primary obstacle to exploration.

• 👷‍♂️ Severe manpower shortages in the Department of Mines and Geology.

• 🗺️ No Mining Zones and land disputes have restricted survey efforts.

• 💰 Mining is the second-largest source of state revenue after taxes.

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🔍 Why Jharkhand Is Falling Behind: Key Challenges

1. Forest Clearance Delays

Most mineral-rich zones in Jharkhand lie under dense forest cover. Getting the necessary environmental clearances can take more than two years, leading to prolonged project delays. The process is complex, involving multiple central and state-level authorities.

2. Lack of Skilled Manpower

The state’s Department of Mines and Geology is understaffed. There are critical vacancies for geologists, GIS analysts, field surveyors, and support personnel, affecting the pace and accuracy of exploration efforts.

3. Restrictions Due to No Mining Zones

Many areas rich in minerals fall under No Mining Zones due to environmental protections or unresolved legal issues. This has led to a disconnect between potential resources and access rights, paralyzing several projects.

4. Redundant Bureaucratic Processes

The administrative structure suffers from excessive file movement, delays in inter-departmental coordination, and re-evaluation of already approved projects. This slows down execution and increases costs.

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📊 Economic Implications of the Delay

Jharkhand’s failure to fully explore and monetise its mineral wealth has direct consequences on its economy:

• 📉 Loss of Revenue: Delayed projects mean lost royalties and lower tax contributions.

• 💼 Employment Impact: Fewer projects mean fewer jobs — both formal and informal.

• 🌍 Investor Hesitation: Slow approvals discourage private investment and FDI.

• 🛑 Lease Auction Delays: Incomplete exploration limits the state’s ability to auction new leases.

🔎 Case Study: The Noamundi Iron Ore Project

• Approved in: 2019

• Estimated reserves: Over 300 million tonnes of iron ore

• Potential revenue: ₹1,000+ crore annually
  Yet the project remains stalled due to clearance and manpower issues.

Also Read:  Panchayat Mediation Mechanism

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✅ How to Fix the Crisis

1. Digitize Forest Clearances

Create an integrated, single-window digital system for environmental and forest approvals to speed up the process.

2. Recruit and Train Geologists

Launch urgent recruitment drives for geologists, surveyors, and technical experts, and offer training programmes to upskill local youth.

3. Review No Mining Zone Classifications

Reassess zones periodically with modern environmental mapping tools to strike a balance between conservation and economic growth.

4. Adopt Advanced Technology

Use satellite-based remote sensing, AI-driven data analytics, and drones for faster and more accurate mineral mapping.

5. Foster Public-Private Partnerships (PPP)

Encourage private sector investment by simplifying approval procedures, offering tax incentives, and implementing risk-sharing models.

✅ Recommendations: What Should Be Done?