CONTENTS
- India’s Illegal Coal Mining Problem
- Budget 2024: A Blueprint for Long-Term Growth
India’s Illegal Coal Mining Problem
Context:
On July 13, three workers lost their lives due to asphyxiation in an unauthorized coal mine located in Gujarat’s Surendranagar district. According to officials, these workers were operating in a mine near Bhet village in Thangadh taluka without helmets, masks, or any other safety gear. The first information report (FIR) mentioned that the responsible parties neglected to provide essential protective equipment, leading to the workers’ deaths from inhaling toxic gases in the mine. The police have filed charges of culpable homicide not amounting to murder against four individuals.
Relevance:
GS1- Mineral and Energy Resources
Mains Question:
How prevalent is illegal coal mining in India and what are the legal frameworks dealing with it? What factors contribute to the persistence of illegal coal mining despite these frameworks and what can be done to minimise it? (15 Marks, 250 Words).
Similar Incidents:
- The incident in Surendranagar is not unique. In June 2023, three people, including a ten-year-old child, reportedly died when an illegal mine collapsed in the Dhanbad district of Jharkhand.
- Similarly, in October 2023, at least three people were killed when a coal mine collapsed during illegal mining activities in West Bengal’s Paschim Bardhaman district.
- These cases highlight the dangers of illegal coal mining in India.
Evolution of Coal Mining in India:
- Coal mining in India was nationalized in two stages: first, with coking coal (used for making coke in the steel industry) in 1971-72, and then with non-coking coal mines in 1973.
- The Coal Mines (Nationalisation) Act, 1973, is the key legislation regulating coal mining eligibility in India.
- Illegal mining presents a law and order issue, which is under the jurisdiction of the State governments rather than the Union government.
Why is illegal coal mining widespread in India?
- According to the Ministry of Coal, illegal mining in India primarily occurs in abandoned mines or shallow coal seams located in remote or isolated areas.
- Several factors contribute to the prevalence of illegal coal mining in the country.
- Coal is the most abundant fossil fuel in India, providing 55% of the nation’s energy needs. The high demand for electricity often exceeds the legal coal supply, leading to illegal mining operations.
- Many coal-rich regions are also near communities facing poverty and unemployment, which drives illegal mining activities.
- In remote regions, weak enforcement of mining regulations is common due to inadequate monitoring and lack of resources, allowing “coal mafias” to thrive.
- For instance, in 2018, activist Marshall Biam from the North East Indigenous People’s Federation filed a complaint accusing a “police-backed” coal gang of threatening him. Coal-rich Meghalaya has experienced several mining tragedies.
- Illegal coal mining is often reportedly supported by political leaders in areas where it is common, making it difficult to control. In 2023, the an Assam-based political party submitted petitions to various authorities, including the President and the Prime Minister, alleging that some leaders of a national party are involved in illegal coal mining in the state.
- They claimed that illegal rat-hole mining persists in Assam, Meghalaya, and other northeastern states with the alleged backing of BJP leaders and officials, despite a blanket ban by the National Green Tribunal (NGT) in 2014.
- Illegal mining often uses simple techniques like surface mining and rat-hole mining instead of the scientific methods required for legal, large-scale operations.
- In areas where coal seams are near the surface, illegal miners access them with minimal safety equipment. The low operational costs can lead to significant profits, making illegal mining attractive.
Why Do Many Workers Die in Illegal Coal Mines?
- The main reason for fatalities in illegal coal mining is the absence of safety equipment and protocols. Miners are at higher risk of respiratory issues due to inhaling coal dust, and the lack of safety gear significantly exacerbates this risk.
- In the Surendranagar incident, the miners died from carbon monoxide poisoning. District Collector K.C. Sampat noted that although 2,100 wells had been filled recently, some may have been illegally reopened, leading to the incident.
- Illegal mines often lack proper structural support, making them dangerous and prone to cave-ins, landslides, and explosions.
- Workers may also be exposed to high levels of toxic substances like lead and mercury, which can cause acute poisoning or long-term chronic health issues.
- Many people working in illegal coal mines are untrained and unaware of the job’s risks. There is a lack of proper training, quick response facilities, and emergency knowledge.
- Operator negligence and worker exploitation are also common in illegal coal mining.
Why do Governments Struggle to Reduce Illegal Coal Mining in India?
- Illegal coal mining has been a topic of discussion in Parliament, but since it’s considered a law and order issue, the Union government often shifts responsibility to State authorities.
- A combination of economic, social, political, and regulatory factors makes it difficult for governments to eliminate illegal coal mining in India.
- Illegal coal mining is not a new phenomenon; it has existed since before coal was nationalized and continues in coal-rich areas or near abandoned mines.
Conclusion:
The high demand for coal as a fuel makes illegal mining widespread and hard to control. In many areas, local economies depend on mining, and once official operations cease, illegal mining takes over to support the community. The legal framework for mining is complex, potentially leading to bureaucratic hurdles and inefficiency in governance, allowing illegal mining to persist.
Budget 2024: A Blueprint for Long-Term Growth
Context:
In a crucial move to bolster India’s economic strength, the Union Budget for the fiscal year 2024-25 has taken major steps to ensure the continuity of progressive reforms. There is excitement in the MSME, E-commerce, and start-up sectors, which have received additional support as the nation advances toward the goal of a Viksit Bharat.
Relevance:
- Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment
- Inclusive Growth and issues arising from it
- Government Budgeting
Mains Question:
The Union Budget 2024-25 reaffirms the Govt’s dedication to long-term growth. Discuss in the context of initiatives proposed in various sectors. (15 Marks, 250 Words).
A Boost for MSMEs:
- The budget appropriately supports the lower end of the industrial spectrum by providing essential credit access for the MSME sector. India is home to 633.9 lakh MSMEs, with over 99% classified as micro-enterprises, totaling 630.5 lakh.
- One significant barrier preventing micro-enterprises (with investments up to INR 10 million) from growing into small or medium enterprises is the lack of access to formal credit.
- By doubling the MUDRA loan amounts and establishing new SIDBI branches, credit will become more readily available to these businesses.
- Other measures, such as the mandatory Trade Receivables Discounting System, have improved liquidity, while industrial parks will offer digital support that MSMEs typically cannot afford.
- Additionally, the new credit guarantee scheme for MSMEs provides term loans without collateral or third-party guarantees, significantly reducing the financial strain on small business owners and encouraging entrepreneurship.
- This positive support for this vital sector is likely to boost its confidence, allowing it to move beyond its risk-averse nature and pursue ambitious growth toward 2047.
Skilling and Job Creation:
- The government has addressed the need for job opportunities and skill development for the youth with this budget.
- The continued focus on skilling will enable training institutions and large corporations to help create a pool of professionally trained workers who can be easily absorbed by them and the broader MSME ecosystem, which often lacks funds for training.
- However, careful implementation will be crucial to moving in the right direction of job creation.
- By ensuring effective execution, the government can pave the way for generating employment opportunities and equipping the youth with the necessary skills to thrive in a competitive job market.
Rural Economy:
- The rural economy continues to benefit from government support, as bolstering this sector is vital for the country’s long-term economic growth.
- The 2024 budget introduced significant initiatives aimed at increasing productivity and ensuring food security in grains and oilseeds.
- These efforts are expected to foster new economic clusters, promoting sustainable growth.
- A notable aspect of the budget is the plan to train 1 crore farmers in natural farming, marketing, certification, and branding, providing a substantial boost to organic farming.
- This focus on mitigating the impact of climate change on agriculture demonstrates the government’s commitment to building resilience in the ecosystem and ensuring the sustainability of the rural economy.
Start-ups and E-Commerce:
- The start-up ecosystem across India has welcomed the abolition of the angel tax, as proposed in the budget.
- The angel tax, introduced in 2012, was levied on the capital raised by unlisted companies through issuing shares to Indian investors if the share price exceeded the company’s fair market value (FMV). This change is expected to encourage more investment in start-ups.
- Additionally, traders and artisans using e-commerce platforms received a boost with the reduction of TDS and the decriminalization of TDS delays.
- E-commerce exports, currently at $2 billion, are projected to reach $350 billion by 2030. With revised custom duties, the government aims to support artisans and traders who sell their products online, aligning with its Make in India strategy and promoting the growth of the digital economy.
Energy Security:
- India’s rapidly growing economy requires increasing energy resources. The budget aims to achieve energy security by encouraging private investment in small nuclear energy reactors and promoting R&D into newer nuclear energy forms.
- These measures are designed to meet India’s rising energy demands while advancing its energy independence goals.
- Regular energy audits in clusters, larger commercial thermal plants, and a pumped storage policy are part of the budget’s strategy to help India manage its growing energy needs effectively.
- However, while the country’s green economy targets are ambitious, more efforts are necessary to ensure a successful transition to sustainable fuels.
Digitization of Land Records:
- One of the most significant initiatives in the budget is the digitization of land records, which could have a profound impact on India’s economic growth.
- Many land areas, particularly in rural regions, are entangled in disputes due to a lack of proper documentation. This issue poses a significant barrier to land acquisition for major projects.
- By digitizing these records nationwide, the government aims to eliminate middlemen and reduce the number of land-related legal cases, thereby streamlining land transactions and supporting economic development.
- Overall, the Union Budget 2024-25 reaffirms the government’s dedication to sustained long-term growth.
- Through strategic investments and forward-thinking policies, India is well-positioned to navigate global challenges while leveraging its vast potential for socio-economic progress.
Conclusion:
The Budget contains measures to empower the poor, women, youth, and farmers. The initiatives introduced in this budget are timely and poised to elevate the Indian economy to new heights during the Amrit Kaal, increasing its resilience in an ever-changing global environment. The journey toward a Viksit Bharat may present challenges, especially given global dynamics, but with a consistent vision and progressive policy support, the dream of a developed India is within reach.
