Minerals & Industries — Set 12

Correct Answer: C. About 25-30%

Jharkhand contributes approximately 25-30% of India's total value of mineral production due to its massive coal, iron ore, mica, uranium, and other mineral resources. This makes Jharkhand one of the top 2-3 mineral-producing states in India. However, despite this mineral wealth, Jharkhand remains among India's poorer states due to issues of revenue sharing, governance, and infrastructure.

Correct Answer: C. Jamshedpur

Tata Cummins Private Limited (joint venture between Tata Motors and Cummins Inc.) manufactures diesel engines in Jamshedpur, Jharkhand. The plant produces engines used in commercial vehicles, industrial applications, and power generation. Jamshedpur's industrial ecosystem includes multiple Tata Group companies that have grown around the flagship Tata Steel plant.

Correct Answer: B. Variable rate based on Coal Mines Royalty Rules — approximately 14% for coking coal

Mining companies pay royalties to the Jharkhand state government at rates specified under the MMDR Act. For coal, the royalty is approximately 14% of the pithead value (it varies by coal type). These royalties are a significant source of state revenue for Jharkhand, though tribal communities argue that the royalties are insufficient compensation for environmental and social costs of mining.

Correct Answer: C. Godda/Dumka region

Jindal Steel and Power Limited (JSPL) has operations in Jharkhand, including power plants in the Godda area where it operates a major thermal power plant fuelled by imported coal. JSPL also has iron ore and coal mining operations in Jharkhand. The Godda power plant has been controversial due to its use of imported coal and export of power to Bangladesh.

Correct Answer: B. A trust fund using mining royalties for development of mining-affected areas in Jharkhand

The District Mineral Foundation (DMF), under the MMDR Amendment Act 2015, is a statutory body at district level that receives a portion of mining royalties (additional levy) to fund development projects in mining-affected areas. In Jharkhand, DMF funds have been used for health, education, water supply, and infrastructure in mining-affected tribal districts. The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guides how DMF funds are spent.

Correct Answer: B. Primarily coking coal (Jharia-Bokaro-Ramgarh belt is India's coking coal heartland)

The Dhanbad-Bokaro-Ramgarh triangle in Jharkhand forms India's coking coal heartland, producing the high-quality metallurgical coal needed for steel production. The Jharia, Bokaro, and Ramgarh coalfields together contain India's largest and best reserves of coking coal. This coking coal is essential for blast furnaces in India's integrated steel plants.

Correct Answer: B. Chandrapura Thermal Power Station (DVC)

The Chandrapura Thermal Power Station, operated by DVC (Damodar Valley Corporation), was one of the earliest thermal power stations in Jharkhand. DVC was established in 1948 and developed multiple power stations in Jharkhand and West Bengal. The Chandrapura plant is located near Bokaro in Jharkhand.

Correct Answer: B. Land acquisition conflict — tribal communities' resistance to displacement for mining projects

The biggest challenge in Jharkhand's mineral sector is land acquisition conflict, as most mineral-rich areas are also tribal homelands. Tribal communities often resist displacement for mining projects, citing loss of livelihood, cultural identity, and ancestral land. The conflict between tribal rights (protected under CNT Act, PESA, Forest Rights Act) and mineral extraction is a central political issue in Jharkhand.

Correct Answer: B. ECL (Eastern Coalfields Limited)

The Rajmahal coalfield in Sahebganj and Pakur districts of Santhal Parganas, Jharkhand, is operated by Eastern Coalfields Limited (ECL), a Coal India Limited subsidiary. The Rajmahal open-cast mines supply coal to thermal power plants. The Rajmahal coalfield expansion has also involved displacement of tribal communities in the area.

Correct Answer: B. Despite rich minerals, poor governance and revenue leakage mean Jharkhand ranks low in human development indices

The 'resource curse' or 'paradox of plenty' describes how mineral-rich states like Jharkhand can remain poor due to poor governance, corruption, inadequate revenue sharing with local communities, and neglect of non-mining sectors. Despite being one of India's most mineral-rich states, Jharkhand ranks low on human development indices, with high poverty, malnutrition, and poor infrastructure. This paradox is a central theme in Jharkhand's developmental discourse.