GS Paper 1 - Distribution of Key Natural Resources

The Distribution of Key Natural Resources is a geographical and economic concept that describes the uneven spatial spread of essential resources like minerals, water, and arable land across India. This distribution is fundamentally rooted in India's diverse geology, with resources such as coal found in the deep Gondwana layer, which dates back to the Mesozoic Era. Historically, the state maintained tight control over these resources, a policy that began to shift toward a more open-market approach after 1991. The primary mechanism for regulating the distribution and development of major minerals is the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). This Act establishes a clear division of regulatory power: the Central Government's Ministry of Mines controls major minerals, while State Governments have complete power to make rules for the grant of concessions and levy of royalty for minor minerals under Section 15 of the Act. A major structural change occurred with the MMDR Amendment Act, 2015, which replaced the previous administrative allocation of mineral concessions with a system of competitive e-auctions to ensure transparency. This amendment also mandated the creation of the District Mineral Foundation (DMF), which allocates a fixed percentage of the revenue from mining to develop the area around the mine. The concept connects to the broader governance of energy resources, which has also seen recent reforms, such as the enactment of the Oilfield (Regulation and Development) Amendment Act, 2025, for the hydrocarbons sector.