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Government update on India mineral production

Mr Dinsha Patel minister of state for mines (independent charge) informed the Rajya Sabha that the overall index for mining sector has shown growth of 7.90% in 2009-10 and 5.25% in 2010-11, where as non fuel and non coal minerals, the index has declined marginally by 0.35% in 2009-10 as compared to 2008-09 and then increased by 0.41% in 2010-11.

However, in the year 2011-12(April-September) the overall index for mining sector has decreased by about 1% and for non-fuel and non coal minerals by 1.45%, as compared to same period in the previous year. As per returns filed by miners under Mineral Conservation and Development Rules,1988, the main reasons for decline in production are restrictions on export, temporary discontinuance of mining, lack of environmental clearance, shortage of labour, and restrictions on grant of transport permits by state government.