08 Aug 2023: UPSC Exam Comprehensive News Analysis

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
C. GS 3 Related
SCIENCE AND TECHNOLOGY
1. Beyond the hype
D. GS 4 Related
E. Editorials
INTERNATIONAL RELATIONS
1. China’s worldview, its postulates and a reality check
GOVERNANCE
1. India’s mining policy shift
F. Prelims Facts
G. Tidbits
1. Malabar Exercise
2. ECOWAS
3. SC to appoint all-women panel to oversee relief in Manipur
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

Category: GOVERNANCE

1. India’s mining policy shift

Syllabus: GS-2, Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Mains: Mines and Minerals (Development and Regulation) Amendment Bill, 2023 and India’s mining policy shift

Background

• The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, was just enacted by Parliament.
• It intends to promote private sector investment in the country’s exploration of important and deep-seated minerals. 
• Six minerals, including lithium, which is utilised in electric vehicle batteries and other energy storage systems, are included in the Bill’s list of “critical and strategic” minerals. 
• These six minerals, originally categorised as atomic minerals, were traditionally restricted to government-owned companies.

Significance of India’s critical minerals

• India’s distinct geological and tectonic context is favourable to the hosting of significant mineral resources. Minerals of many types are essential to a country’s manufacturing, infrastructure, and advancement.
• Furthermore, the clean energy transitions of nations such as India, which are attempting to reach their net-zero emission targets, are dependent on the supply of essential minerals and others such as cobalt, graphite, and rare earth elements (REEs). 
• These are also necessary for the production of semiconductors used in smart electronics, defence and aerospace equipment, telecommunication technologies, and other applications.
• The scarcity of such minerals leads to import dependency, supply chain weaknesses, and potential supply disruption. 

Need of private sector for critical minerals exploration

• Mineral exploration is the first step in discovering mineral deposits and, eventually, economically viable reserves. 
• The stages of exploration are classified as G4 (Reconnaissance), G3 (Prospecting), G2 (General Exploration), and G1 (Detailed Exploration) by the United Nations Framework for Classification of Resources.
• There haven’t been many notable mineral discoveries in the country in the recent few decades, and the majority of exploration efforts have been carried out by government organisations.
• For many years, India’s mining policy barred private-sector explorers from conducting greenfield mineral exploration. Companies also reported a lack of appropriate incentives.
• Exploration necessitates procedures such as aerial surveys, geological mapping, and geochemical analysis, and it is a highly specialist, time-consuming, and financially risky business, with less than 1% of investigated sites developing into commercially viable mines.

India’s mining policy and private sector participation

• The Mines and Minerals (Development and Regulation) Act (MMDR Act), 1957, the principal mining legislation in the country, has been revised numerous times since its inception, most recently in 2015, 2020, and 2021. 
• The MMDR Act was revised in 2015 to allow private businesses to bid for Mining Leases and Composite Licences (CLs) in government auctions. 
• Due to the Evidence of Mineral Content (EMT) regulation, however, only government-explored projects were auctioned, limiting private-sector participation. 
• The amendment also allowed private companies to register as exploring agencies, with the National Mineral exploration Trust (NMET) supporting exploration from G4 to G1, but private participation remained limited.

How does the Mines and Minerals Bill 2023 aim to encourage private players?

• The Mines and Minerals Bill 2023 excludes at least six of the previously stated atomic minerals from a list of 12 that cannot be mined economically. 
• Pitting, trenching, drilling, and subsurface excavation are prohibited as part of reconnaissance, which includes mapping and surveys. The Bill permits these illegal actions.
• The Bill also proposes a new form of licence to encourage private sector reconnaissance—level and or prospective stage exploration.
• It also stipulates the maximum exploring area; activities in up to 1,000 square kilometres will be permitted under a single exploration licence. 
• It also stipulates that after the first three years, the licensee will be able to keep up to 25% of the originally authorised territory by submitting a report to the State government outlining the reasons for keeping the area.
• The Bill also authorises the national government to hold auctions for composite licences and mining leases for selected important and strategic minerals.

Concerns with the Bill’s proposals

• Organisations and professionals in the industry have recommended changes to the proposed revisions and highlighted several problems.
• A part of the premium paid by the miner would be the major source of revenue for a private business with an exploration licence. 
• The explorer would not know how much money they would make because the auction premium would not be known until the mine was successfully auctioned.

Conclusion

India’s reliance on imports for vital and deep-seated minerals has been a source of concern, resulting in supply chain vulnerabilities and import reliance on countries such as China, Russia, and Australia. According to the new regulation, only the government can auction off what an explorer has discovered, and the latter would only receive a portion of the premium at a later date. In contrast, in other global jurisdictions, individual explorers can sell their discoveries to miners.

Nut Graf: The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, seeks to attract private sector investment in the country’s exploration of important and deep-seated minerals. India’s ability to locate and exploit economically viable reserves has been hampered by a lack of private sector participation in mineral exploration.

2. ECOWAS

• ECOWAS (Economic Community of West African States) is convening a meeting of its leaders to discuss the crisis in Niger.
• The crisis involves the military rulers of Niger who have disregarded ECOWAS’ ultimatum to relinquish power.
• The ultimatum given to Niger’s military rulers is to cede power or potentially face military intervention.
• The summit is scheduled for 10 August and will be hosted in Abuja, Nigeria.
• Bola Tinubu, the President of Nigeria, currently holds the position of ECOWAS chairman.

3. SC to appoint all-women panel to oversee relief in Manipur

• Appointment of All-Women Committee
  • Chief Justice of India announced the formation of an all-women committee composed of three former High Court judges, headed by Justice Gita Mittal.
  • Committee’s mandate: Supervise, intervene, and monitor relief, rehabilitation, and restoration efforts, including homesteads and places of worship.
• Monitoring Investigation
  • Retired Maharashtra Cadre IPS officer Dattatray Padsalgikar to oversee an investigation into registered cases during Manipur violence.
• Special Investigation Teams (SITs) and External Oversight
  • The Supreme Court emphasised on the need for external oversight of State Police investigation.
  • DGPs from six States to appoint six officers of DIG rank for each of the six SITs.
  • Multiple layers of monitoring introduced to ensure transparent and efficient investigation.
• External Involvement in CBI Investigation
  • The Supreme Court directs the inclusion of officers from other States in the CBI investigation.
  • These officers are nominated by their respective State DGPs and supervised by a CBI Joint Director.
• The Supreme Court’s proactive measures aim to address the challenges posed by the violence in Manipur by facilitating comprehensive relief efforts, effective rehabilitation, and transparent investigation processes.

Q1. Consider the following statements about the Trilateral Highway project:

Q2. Which of the following is an incorrect statement about the Economic Community 
of West African States (ECOWAS)?

Q3. What is LK-99, recently discovered by physicists in South Korea?

Q4. With reference to the Mines and Minerals (Development and Regulation) Amendment 
Bill, 2023, which of the following statements is/are incorrect?

Q5. Which countries are participating in the 31st edition of the Malabar multilateral 
exercise to be held in August?