Introduction
Chapter- 1 || 2 || 3 || 4 || 5 || 6 || 7 || 8 || 9 || 10 || 11 || 12 || 13 || 14 || 15 || 16 || 17 || 18 || 19 || 20 || 21 || 22 || 23 || 24 || 25 || 26 || 27 || 28 || 29 || 30 || Conclusion || Appendix

Chapter 18:
DEVELOPMENT OF MINERAL RESOURCES

Progress In The First Plan

The first plan provided for systematic and detailed investigation and surveys by the Geological Survey of India, the Indian Bureau of Mines and the National Laboratories with a view to quan^ative and qualitative assessment of the country's referves of important minerals. A sum of Rs. 1 crore was allotted for the expansion of the Geological Survey of India and the Indian Bureau of Mines which was subsequently increased to about Rs. 2.5 crores to enable them to expand more rapidly. The plan also made a number of specific recommendations, which included the following:—

(a) Coal:

1. Adoption of measures forJconservation of metallurgical coal, restrictii|i of output and enforcement of washing an^ blending and of stowing for conservation
2. Detailed mapping ofimportdiftt coalfields and assessment of reserves of ttiaterial suitable for stowing;
3. Evolving a scientific classipbation for coal based upon calorific value, ash and moisture contents and coking property;
4. S tepping up production from outlying coalfields
   
5. Research on washing, blediing and carbonisation of coal;
   
6. Legislation for the enforcemlfht of stowing for conservation, washing and blending, consolidation of cesses auditor setting up machinery to deal with all questions relating to coal in a coordinated ; and
   
7. Extension of the use of soft coke for domestic purposes with a view to conserving cow-dung
   for manurial purposes,

b) Other Minerals:

1. Detailedlnvestigations with Hyiew to a proper assessment of the quality a^jl quantity of the more important deposia of iron ore,
2. Investigations on the beneficiation of low grade ore particularly manganese ore, and chromite; and
3. Enforcement of systematic methods of mining.

2. The action taken so far on the above recommendations is set out below:—

(a) Coal:

(1) With the passing of the Coal Mines (Conservation and Safety) Act, 1952, a positive step was taken for the conservation of metallurgical coal. In exercise of the powers conferred fcy the Act, the production of coking coal was pegged from 1952. To begin with the pegging order covered only Selected A and B grades but was extended in 1953, to cover grades I and II coking coal also. Powers have also been taken under the Act in regard to stowing for conservation and coal washing.

The pegged limits and the actual production of coking coal during the last four years are given below:—

'Estimated production.

(a) The production was pegged at the 1952 level.

(2) The resurvey of the Railiganj/ Jharia and Bokaro coalfields has indicated substantially larger reserves of coal in the Raniganj and Jharia coalfields. The resurvey of Karan-pura coalfield which is under progress has revealed the existence of many new coal seams. Detailed investigations have been started at the Jhilimilli coalfield which is reported to contain coking coal. A Committee has been appointed to study and report upon the availability of materials suif-ble for stowing purposes in the Bengal-Bihar coalfield area;

(3) A Committee of the Indian Standards Institution—the Solid Mineral Fuels Sectional Committee—has drawn up the draft Indian Standard General Classification of Coal which has been placed before the Institution for adoption;

(4) Production from Singareni collieries has been stepped up to 1.5 million tons. Though some of the collieries in Central India are capable of stepping up production at short notice, limitations of transport keep production in check;

(5) The Fuel Research Institute has undertaken studies on washing, blending and carbonisation of coal in a laboratory scale with good results. The investigations will be continued on a pilot plant scale;

(6) The Coal Mines (Conservation and Safety) Act, 1952, gives the Central Government power to enforce measures of conservation. A Coal Board has beeaset up with a number of advisory committees and rules have been issued under Section 17 of the Act;and

(7) The value of soft coke as a domestic fuel is appreciated, but further expansion of its use is limited by transport difficulties.

3. Though no target was fixed for coal production, it was expected that the additional demands arising from development programmes envisaged in the first five year plan would require production to be raised from about 32.31 million tons in 1950 to 39 million tons by 1955-56. Except for a sharp drop in 1953 occasioned by a fall in the export demand and the consequent accumulation of stocks, production has been steadily increasing since 1951 and reached a figure of 38.22 million tons in 1955. The raisiugs, despatches and export of coal from 1950 to 1955 are given below:—

(Figures in million tons)

Investigations

4. Owing to the delays in recruitment of technical personnel and procurement of equipment, the Geological Survey of India (GSI) and the Indian Bureau of Mines (IBM) did not expand as quickly as had been hoped, especially in the first few years of the plan, with the result that the work actually accomplished is less than had been intended. However, within the limits of the personnel and equipment available, useful work lias been done. The actual progress of expenditure in the expansion of these two Departments is shown below:—

(Rs. lakhs)

5. Besides regular geological mapping and detailed investigation of promising mineral deposits the geological survey gave special attention to the manganese ore belt in Madhya Pradesh. Large-scale mapping of this area has shown that the reserves of manganese ore are much larger than had been hitherto estimated. Similar investigation of the Zawar lead-zinc deposits is in progress- The Geophysical Section of the Survey has greatly increased its activities. Special mention may be made of geophysical investigation of (a) North-West of Cambay for the location of possible oil bearing structures, (b) the manganese ore belt in Madhya Pradesh for the location of ore bodies at depth, and (c) sulphide ore bodies in Singhbhum (Bihar) and Chitaldrug (Mysore) for determining their extension. Following geophysical investigation, detailed drilling has been started in the Chitaldrug area. Exploratory mining of the Amjor pyrite deposits has indicated a reserve of about 75,000 tons in a small part of the deposit which was investigated.

6. Most of the important mines wdrking manganese ore, chromite and mica have been inspected by the Indian Bureau of Mines and valuable data on methods of working have been collected. Steps are being taken to correct wasteful methods of mining. Detailed investigation of mineral deposits covered gypsum in the Andamans, asbestos in Andhra, pyrite in Simla, diamonds in Panna, chromite in Andhra and Mysore and sulphur in Ladakh. In addition the Bureau is doing the prospecting of raw materials for the Rourkela and Bhilai steel plants.

Preliminary investigations on the beneficiatioh of low grade manganese ore have given encouraging results and they are to be followed up on a pilot plant scale. The installation of a heavy media separation plant by the Central Provinces Manganese Ore Syndicate marks an important step in the utilisation of low grade manganese ore. The Company proposes to put up another washing plant shortly.

7. In collaboration with the Geological Survey of India, the Central Glass and Ceramic Research Institute has done detailed investigations on clays and ceramic raw materials. Investigations have also been conducted on the utilisation of waste mica with encouraging results.

8. The ore dressing section of the National Metallurgical Laboratory has conducted beneficiation tests on chromite, manganese ore and kyanite with encouraging results and the investigation on the recovery of pyrite from the coal washing rejects from Nowrazabad collieries has been successful. In addition the Laboratory has done a large number of investigations on indigenous sands with a view to determining their adaptability for foundry moulding purposes.

9. The Government of India signed an agreement with the Standard Vacuum Oil Company Ltd., for joint exploration for petroleum in the West Bengal basin. In addition, departmental exploration for oil was initiated in 1955-56 in the Jaisalmer area of Rajasthan and an Oil and Natural Gas Division was established by the Ministry of Natural Resources and Scientific Research which has since been set up as separate Directorate of Oil and Natural Gas for undertaking intensive exploration.

Mineral Production

10. There was a general increase in the volume and value of mineral production during the first three years of the plan, but as a result of the slump in the manganese ore and mica markets, the volume and value dropped sharply in 1954. Statistics of production relating to the more important minerals are given below:—

Programme For The Second Plan

11. The emphasis on industrial development in the second five year plan necessarily involves intensified programmes of mineral development. The expansion of steel ingot capacity to 6 million tons will call for large-scale increases in the output of iron ore, coal, limestone and dolomite and refractory materials. The development of the aluminium industry will increase the demand for bauxite and of the cement industry for limestone, gypsum and clay. Though progress has been made in the survey of mineralised areas and the principal mineral regions have been ascertained, in the context of the industrial development envisaged in the coming years, it is necessary to have more detailed information of the extent and quality of the country's mineral deposits. To this end systematic mapping, where necessary on large-scale maps, wider adoption of geophysical and geochemical methods of prospecting, and some exploratory drilling will all be required.

Coal

12. In view of its basic importance as a fuel for a .variety "of'industries and also as a raw material for industries like iron and steel, coal carbonisation, etc., coal must claim first attention.

13. Output of coal during 1955 reached a level of 38 million tons. The bulk of the present production is from collieries in the private sector, the public sector accounting only for 4.5 million tons. On the basis of industrial targets in the second plan and the programmes for thermal power generation and for railway development, the demand for coal at the end of the second five year plan is estimated to be about 60 million tons.

This represents an increase of about 22 million tons over the level of production in 1955 or 23 million tons over the level of output in 1954, and special efforts will be required to raise this quantity. Even though some additional production can be obtained from existing workings, the order of increase is such as to make necessary the opening up of a number of new areas.

14. The Industrial Policy Resolution of 1948 laid down that all new undertakings in coal are to be in the public sector except where, in the national interest, the Government wish to secure the cooperation of private enterprise. A few relaxations were allowed in the past in keeping with this policy, but it has been decided that in future the policy of retaining all new undertakings in coal in the public sector should be more stricfly , followed and that the additional coal production required to meet the increased demand during the second plan should be raised to the maximum extent possible in the public sector. Accordingly it has been tentatively decided that of the additional production of 22 million tons envisaged by 1960-61, 12 million tons should come from collieries in the public sector, either already existing or to be newly opened and that the balance should be raised by the private sector from their existing workings and immediately contiguous areas. The expansion of production by the establishment of new collieries will be undertaken wholly in the public sector. Of the additional production in the public sector, 2 million tons will come from existing workings—500,000 tons from existing collieries, principally Bokaro, and 1.5 million tons from Singareni— and 4 million tons are proposed to be obtained by the development of the Korba coalfields. The areas from which the remaining 6 million tons will be obtained have been broadly decided but particulars, including specific allocations for each area, are being determined. It is an overriding consideration that development of new mines should as far as practicable be in the outlying fields. The total capital investment required for raising 12 million tons of additional coal in the public sector is roughly estimated at Rs. 60 crores including Rs. 12 crores for housing. For the present a provision of Rs. 40 crores has been made.

To organise production of coal in the public sector, Government have set up an organisation under a Coal Production and Development Commissioner who will be the administrative head of the existing State collieries and the new collieries proposed to be establishing during the plan period. The control aspect of coal, exercised under the Colliery Control Order regarding distribution, price, etc. and the control over private industry has been entrusted to a separate authority, the Coal Controller.

The existing State collieries are at present administered departmentally but it is proposed to set up a Company to own and manage these as well as those collieries which will be established during the period of the plan.

For the training of the technical personnel that will be required in connection with the expansion of production of coal, four training centres are to be established as a first step at Kargali, Giridih, Talcher and Kurasia for the training of intermediate and lower technical staff required for the industry such as supervisors, overseers, electrical and mechanical subordinates etc. More training centres will be opened during the period of the plan to meet the increasing requirements of technical staff.

15. Transport of coal places a heavy strain on the Railways because, while coal is needed all over the country, production is at present concentrated in the States of West Bengal and Bihar. The Railways have tried to rationalise coal movements but, in the context of the very large increase in demand, a measure of rationalisation of production is also called for. The coal production programme has been drawn up so as to develop collieries in different States. The following statement shows the anticipated distribution of coal output at the end of the second plan as compared with the distribution in 1954:—

(Figures in million tons)

16. The target of 60 million tons includes the requirements of coking coal of the iron and steel industry and of other essential consumers. The production of this quality of coal has been pegged at 14 million tons and the actual production is little short of this limit. As against this, the demand of essential consumers is only about 3.5 million tons and the balance of production is consumed by Railways and industries and a small quantity is exported. The expansion of steel production in the second plan will require 9.73 million tons of coking coal, while the requirements of other essential consumers have been estimated at 1.68 million tons. Thus, the total requirements amount to 11.41 million tons in terms of clean washed coal or about 16.5 million tons in terms of raw coal as against the present production of about 13.5 million tons. In order to meet the greatly expanded requirements of essential consumers by 1960-61 the production of this quality will have to be raised progressively and with a view to conserve the limited reserves steps will have to be taken to substitute by stages the coking coal now consumed by non-essential consumers like the railways by suitable non-coking coal. The Railways have suggested a phased programme for such substitution.

17. In the interest of conservation and having regard to the need to supply coal of fairly uniform quality to the steel industry, the washing of metallurgical coal has become necessary. The question of washing Indian coals and the establishment of coal washeries was examined by the Coal Washeries Committee appointed by Government. In the light of the report of the Committee and the recommendations submitted on it by the Coal Board, the Central Govemient have taken the following decisions:—

1. Generally, all metallurgical coal down to grade II should be washed;
2. To meet the requirements of washed coal of all existing and projected steel plants, private collieries may be given the choice to set up washeries. If the required quantities do not become available from washeries set up by private collieries. Government will themselves set up washeries to meet the full requirements; and
3. The average.cost of washing should be made good to the collieries through either revision of prices or a negotiated price for washed coal or by means of a suitable subsidy as may be determined at the appropriate stage.

There are already three washeries in the private sector at Jamadoba, West Bokaro and Lodna collieries respectively which supply washed coal to the Tata Iron and Steel Company and the Indian Iron and Steel Company. It has already been decided to set up a coal washing plant at Bokaro/Kargali with a capacity for washing 2.2 million tons of coal per annum. The washed coal from this washery will be supplied to Rourkela and Bhilai Steel Plants. Orders have already been placed with a Japanese firm for the manufacture and installation of this washing plant. Another washery is proposed to be set up at Durgap'ur. Proposals for further washeries for meeting the ftquirements of the steel plants are under consideration. A provision ofRs. 6 crores has been made in the plan for setting up coal washeries.

18. As indicate^ earlier, due to limitations of transport, there has not been much increase in the use of soft coke for domestic purposes—it increased only from 1.1 million tons in 1950 to about 1.6 million tons in 1955 as against the target of additional consumption of 1 million tons. In estimating the requirements of coal by the end of the second plan, it was assumed that 3.5 million tons will be required by provincial or Z class consumers, the bulk of which will be for conversion to soft coke. At present most of the soft coke is produced from low grade metallurgical coal in the Jharia coalfield and reserach has shown that this grade of coal could be bfneficiated for metallurgical purposes. Until, however, large-scale units of modern type for low temperature carbonisation of non-coldng coal are Set up, increased production of soft coke will have to continue to be obtained on the existing pattern of decentralised production involving use of metallurgical coalyhich could be avoided.

In connection with the South Arcot Lignite Project, it is proposed to diablish a plant to produce 714,000 tons of lignite briiyettes which will be carbonised to yield 380,000 tons semi-coke.

In view of the great importance of soft coke, high priority has to be given to this industry in any revisions of the plan or under the third five-year plan.

Programmes Of Investigation

19. On the basm of the capacity envisaged for different industries under the second five-year plan the following targets of production are indicated in respect of the more important minerals. The targets provide for internal requirements and also in some cases for exports.

*The figures are based on the capacity envisaged for industries uaing these minerals and do not include the requirements of miscellaneous consumers, data regarding which are not available.

20. During the second plarifsurveys and investigations of mineral resources have to be pressed forward more intensftely than ever. A large increase in the production of coal in the public sector which is to come mainly from virgin areas calls for immediate attention being paid to detailed prospecting of selected coalfields. Likewise, increasing participation by the State in basic industries like iron and steel will require detailed investigation of deposits of mineral raw materials such as iron ore, manganese ore, limestone and refractory minerals. These call for considerable expansion of the Geological Survey of India and the Indian Bureau of Mines and their proper equipment for the task. Keeping in view the needs of the second five year plan interim proposals for the expansion of the two departments were approved in the first half of 1955. Proposals for their further expansion are under consideration. These have been tentatively estimated to cost Rs. 5 crores for the Geological Survey and Rs. 1 crore for the Bureau of Mines.

21. Proposals in respect of the G.S.I.. provide for-

(1) expansion of facilities for geological mapping so that the basic map coverage can be rapidly extended. (The appraisal and development of the mineral resources are dependent upon the availability of complete and accurate geological maps and hence the need to extend its coverage as quickly as possible. At present only one-fifth of the country has been covered by modern maps on the scale of 1" to 1 mile).

(2) expansion and strengthening of the Economic Geology, Geophysical, Engineering and Groundwater Geology divisions. Apart from detailed investigation of important minerals by geological and geophysical methods the Department will undertake a systematic study of hydrological conditions in river basins. A beginning is proposed to be made with the study of the Ganga and the Godavari-Krishna river basins. Such detailed information on hydrology is essential for the planned utilisation of the country's water resources. „

(3) organisation of a well-equipped drilling division which will enable mineral investigations to be carried a stage further than was possible hitherto. Besides studying the areal distribution the deposits will be investigated in depth so that a more accurate assessment can be made of the reserves, both qualitatively and quantitatively.

In the case of the Indian Bureau of Mines, the Research, Prospecting, Mining and the Drilling Divisions are to be strengthened, so that the Department will be able to undertake detailed prospecting of selected areas as also exploratory mining to prove the workability of some of them.

22. The programmes of work of the Geological Survey and the Bureau of Mines envisage both extensive and intensive investigations. The more important items included in these are set out below:—

• Coal.— Detailed geological investigations followed by drilling of Korba, South Karanpura, Raniganj, Chirimiri, Ramgarh, Jhilimilli and North Karanpura (in connection with coal production in the public sector) and of the coalfields of Kota, Singrauli, Umaria, Sohagpur, Kanhan and Pench Valleys, Hyderabad, Talcher, Godavari valley and Assam (for purposes of qualitative and quantitative assessment).
• Copper—Detailed mapping and prospecting of the copper deposits of Khetri, Daribo (Rajasthan) and detailed investigation of the old workings at Gani in the Kumool district of Andhra.
• Manganese.— Continuation of the detailed mapping accompanied by drilling of the manganese ore belt in Madhya Pradesh.
• Chromite.— Detailed investigation of the chromite area of Southern Mysore and of the Naushai chromite deposits in Orissa.
• Gypsum.— Detailed investigation by drilling of the gypsum deposit at Nagaur (Jodhpur) and Bikaner (Rajasthan).
• Lead-Zinc.— Investigation by drilling of the lead-zinc deposits of Zawar (Rajasthan).
• Tin.— Detailed investigation of the known occurrences in Bihar.

Several other investigations are also proposed to be taken up by these organisations during the second five year plan. This will include fairly detailed examination of several non-metallic mineral deposits such as limestones, dolomites, marbles, glass sand, graphite, ochre, clays. Fuller's earth, soapstone, gypsum etc. These deposits are widely distributed all over India and the investigations will, therefore, be partly on a regional scale and partly-on individual deposits.

Besides the programmes indicated above which will be implemented by the Centre, the plan also contains a provision of Rs. 2.0 crores for mineral development schemes to be implemented by State Governments. A major item among the schemes to be implemented by States is the development of Hutti Gold Mines in Hyderabad for which a provision ofRs. 50 lakhs has been tentatively agreed to.

23. In view of the vital part that minerals play in the country's industrial development, it is contemplated that the State will increasingly undertake their exploitation. Hitherto the only minerals whose future development has been reserved for the public sector are coal and mineral oil; but under the new Industrial Policy Resolution a number of important minerals are being added to the list (vide Annexure to Chapter II). In consequence of this policy schemes for the exploitation of diamonds and the establishment of a copper mine in the public sector during the plan period are being worked out in the Ministry of Natural, Resources and Scientific Research. The provision of resources for these schemes will be considered at the appropriate stage.

24. The exploration and development of the country's oil resources is one of the important tasks of the second five year plan. Government exploration initiated earlier in the Jaisalmer area will be continued. and will include aero-magnetic surveys followed by ground geological surveys and geophysical investigations and exploratory drilling. In addition, reference drilling will be undertaken in Cambay and deep test drilling in Jawalamukhi on the basis of preliminary data collected already which show these areas to be promising. In view of its highly specialised nature and the lack of facilities within the country, technical assistance was obtained from Canada under the Colombo Plan for an aero-magnetic survey of the Jaisalmer area. The survey has been completed and the ground investigations will be intensified on area selected on the basis of the interpretation of the aero-magnetic data. Canada has agreed to extend technical assistance for aero-magnetic surveys to cover some additional areas also and this assistance is proposed to be utilised for a survey of certain parts of Punjab, Uttar Pradesh and Bihar.

25. In view of the expanded programme of oil exploration during the second five year plan, steps have to be taken to train personnel in various aspects of petroleum exploration. The Plan provides for a programme of training different categories of personnel required for oil exploration, both abroad as well as in India with the help of technical consultants and experts whose services may be obtained from foreign countries. The introduction of a special course in oil technology and drilling in the Indian School of Mines and Applied Geology, is also under consideration.

26. For the present a provision of Rs. 11.5 crores has been made for oil exploration and this amount will meet the cost of the operations so far projected in the Jaisalmer area, drilling in Cambay and Jawalamukhi and technical training programmes. Further proposals for oil exploration are being formulated and as programmes are approved from time to time. additional resources will be provided.

Besides Government exploration. Government's participation with the Standard Vacuum Oil Company in the exploration of the West Bengal basin will be continued. In addition proposals are also under consideration for a joint exploration of the Assam area in partnership with the Assam Oil Company. The Company has been granted prospecting licences over certain areas adjacent to Nahorkatiya where oil was struck in 1953, on the Company agreeing to government participation. The financial aspects of Government's participation in oil exploration with private firms are yet to be worked out Resources needed for the purpose will be provided at the appropriate stage.

Survey Of India

27. The work of the Survey of India has a considerable bearing on the development of mineral resources, although it extends to several other fields as well. Maps are required for geological and geophysical investigations of minerals, mineral oil and groundwater and of the geological aspects of engineering. They are also required for other purposes like the development of forest resources, railways and roadways, irrigation and power projects. The work of the Survey of India, which is one of the oldest departments of the Government of India, ws considerably dislocated during the second world war with the result that large arrears of work accumulated. In post-war years additional demands have been placed on the organisation. To meet this situation, a programme of expansion and mechanisation was approved in 1953. The programme of mechanisation is nearing completion. In view of the work load expected during the second plan, further expansion and mechanisation programmes, at a cost of Rs. 140 lakhs have been approved. Provision has also been made for the re-organisation of the Geodetic and Research Branch of the Survey of India which is responsible for keeping up-to-date the levelling and triangulation work as well as magnetic data and for maintaining tidal and gravity surveys.