Minerals and Energy Resources

Why this chapter matters for UPSC: Minerals and energy are core GS3 topics. Prelims consistently tests mineral distribution (which state produces which mineral). Mains GS3 asks about India's energy transition, renewable energy targets, and resource governance. The chapter also connects to GS2 (mining laws, tribal displacement, environmental clearances) and GS1 (distribution of minerals in India).

Contemporary hook: India set a target of 500 GW of non-fossil fuel energy by 2030 (under its NDC to the Paris Agreement). As of early 2025, India has crossed 200 GW of renewable energy capacity. India is the world's 3rd largest electricity producer and 3rd largest energy consumer. The shift from coal to renewables — while managing energy security for a developing economy — is one of the most consequential policy challenges of the coming decade.

PART 1 — Quick Reference Tables

Types of Minerals: Classification

Mineral Distribution: State-wise Key Facts

India's Coal Reserves and Production

India has ~6% of world's coal reserves (5th largest). Most is Gondwana coal (~98%), 250 million years old. Very little Tertiary coal (found in NE — Assam, Meghalaya, Nagaland; and J&K).

Petroleum and Natural Gas

PART 2 — Detailed Notes

Minerals: Mode of Occurrence

Minerals are found in:

1. Igneous and metamorphic rocks: Iron ore, copper, gold, nickel, chromite in rock intrusions
2. Sedimentary rocks: Coal, gypsum, potash, sodium salt in beds/layers
3. Weathering and residual deposits: Bauxite (from aluminium-rich rocks weathering in tropical conditions); manganese
4. Alluvial deposits: Gold, tin (placer deposits in riverbeds)
5. Ocean floor: Manganese nodules; polymetallic nodules (India has EEZ rights to mine in Central Indian Ocean Basin)

Mining: Environmental and Social Issues

Mining is a significant source of environmental and social conflict in India:

• Forest destruction: Mining projects require clearing forests; tribal communities depend on forests
• Water pollution: Acid mine drainage, slurry ponds contaminating rivers
• Land subsidence: Underground mining causes surface collapse (Jharia coalfield fire is a 100-year-old mine fire still burning)
• Displacement: Tribal communities displaced without adequate rehabilitation
• Illegal mining: Rampant in iron ore (Bellary scandal, Karnataka), sand mining (rivers being destroyed)

The Mines and Minerals (Development and Regulation) Act (MMDR) 1957, amended multiple times (2015, 2021), governs mineral extraction. The District Mineral Foundation (DMF) and Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) use mining revenues for the welfare of mining-affected communities.

Conventional Energy Sources

Coal provides ~50–55% of India's electricity. India is the world's 2nd largest coal consumer (after China). The government's coal dependence creates a climate contradiction: India's NDC commits to reduce carbon intensity, but coal remains essential for affordable baseload power.

Petroleum: India imports ~85% of its crude oil needs (as of 2024–25). This is a major macro-economic vulnerability — oil import bill fluctuates with global prices. India's strategic petroleum reserves (SPR) can last about 10–15 days of consumption.

Natural Gas: ~7% of India's energy mix. Used in fertiliser production (urea), city gas distribution (CNG for vehicles), and power. Gas infrastructure (pipelines) still limited compared to other countries.

Non-Conventional Energy Sources

PART 3 — Frameworks & Analysis

India's Energy Transition: Key Targets (2024–30)

Critical Minerals: The New Frontier

For the energy transition (EVs, solar panels, wind turbines), India needs:

• Lithium: EV batteries; India has found deposits in J&K (Reasi) and Rajasthan
• Cobalt: EV batteries; India largely import-dependent
• Rare Earth Elements (REE): Electric motors, wind turbines; India has significant deposits but limited processing
• Graphite: EV batteries; anode material

India's National Critical Minerals Mission (2024) aims to ensure supply security for these transition minerals.

Exam Strategy

Prelims fact traps:

• India's first oil refinery: Digboi, Assam (1901) — Asia's oldest refinery
• Mumbai High: offshore, Arabian Sea; ONGC; India's largest oilfield
• India's coal type: ~98% Gondwana coal (bituminous); neyveli is lignite (Tamil Nadu)
• Kolar Gold Fields (KGF): Karnataka (not Rajasthan)
• Khetri copper mines: Rajasthan
• Jaduguda uranium mines: Jharkhand

Mains question patterns:

1. "India's mineral wealth is concentrated in its most socially marginalised regions. Examine the developmental paradox this creates." (GS3)
2. "India's energy transition to renewables must balance climate commitments with energy affordability for the poor." Critically examine. (GS3)
3. "Critical minerals are the new strategic resource. Assess India's preparedness." (GS3)

Previous Year Questions

1. Discuss India's non-conventional energy resources and the challenges in harnessing them. (UPSC Mains GS3)
2. "India's coal dependence is both an economic necessity and an environmental liability." Examine. (GS3)
3. Examine the distribution of iron ore and coal in India and their significance for industrial development. (GS1/GS3)
4. What are critical minerals and why are they important for India's energy transition and strategic security? (GS3)