Govt releases Natural Resource Accounting to track mineral, energy deposits

The asset accounts would help identify alternate economic and energy-based resources, and aid in developing an ecosystem for containing illegal mining

economy, production, manufacturing, gdp, growth, jobs, workers, labours, industry, metal, mineral, melting, safety
Karthik Jerome New Delhi
3 min read Last Updated : Jul 16 2022 | 12:22 AM IST
The Government Accounting Standards advisory board (GASAB) has come up with a Natural Resource Accounting (NRA) for tracking and maintaining the natural resources of India. GASAB had prepared templates for the asset accounts for mineral and energy resources which were field-tested and reviewed by the experts in the consultative committee. As on date, all 28 states and one Union Territory (J&K) have prepared the asset accounts for 2020-2021. The asset accounts captured details of 34 major minerals, 58 minor minerals and all four fossil fuels. A report of the asset accounts will be shortly published and an electronic dashboard with information will be hosted in the web.

GASAB has developed standard operating procedures to ensure automated collection and compilation of data from 2022-23. It would also suggest recommendations for end-to-end mapping of supply and use of resources which would help the states in mopping up due revenues from the resources.

Also Read: Seized over Rs 36-cr illegal mining cash in Jharkhand in last 2 months: ED

Upon compilation, the asset accounts would enable multiple data such as a one-pager document on state-wise resources and compilation of physical and monetary values and analysis of revenue vis-à-vis market value/export value to assess and review the royalty rates and arrest windfall gains and protect state’s revenue interest. They would also help identify alternate resources, both economic and energy, and aid in developing an ecosystem for containing illegal mining.

The formats of asset accounts have been designed in keeping with the prescriptions of System of Environmental-Economic Accounting central framework (SEEA-CF), which allows flexibility to embed country specific needs. For example, the asset accounts on mineral and energy resources incorporate information on illegal mining while the asset accounts of water resources require information to be provided separately for surface water and groundwater, taxed and untaxed water etc. The SEEA-CF prescribes seven resources; mineral and energy resources, land and soil resources, timber resources, aquatic resources, other biological resources (except timber and aquatic resources), and water resources.

Another recognised issue was the role of private players and bringing them under the overall framework of NRA by proposing specific reporting requirements, so that the entire spectrum of resource extraction and utilisation and management of residuals can be covered under one umbrella.

The concept paper envisaged by GASAB has also set up short-, medium- and long-term goals that span 10 years (2020-30) and converge with sustainable development goals (SDGs) set by the UN General Assembly (2015-30).

The short-term goals (2019-20 to 2021-22) are preparation of asset accounts on mineral and energy resources in states, initiation and preparation of a disclosure statement on revenues and expenditure related to NRA.

The medium-term goals (2022-23 to 2024-25) are about preparation of national asset accounts on mineral and energy resources, and in respect of other four resources namely water, land and forestry and wildlife resources in the states. They also entail preparation of functional accounts, recording transactions and other information about economic activities undertaken for environmental purposes.

The long-term goals (2025-26 onwards) are about supply and use of tables in physical and monetary terms showing flow of inputs, products and residuals; and preparation of the economic accounts highlighting depletion adjusted economic aggregates.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Natural resourcesmineral sectoreconomicsMining industryMining in Indiamineralsiron ore minesmines ministrySDGsAccountingillegal mining

Next Story