Consider the following statements: 1. In India, State Governments do not have the power to auction non-coal mines. 2. Andhra Pradesh and Jharkhand do no have gold mines. 3. Rajasthan has iron ore mines. Which of the statements given above is/are correct?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2018, Q23

Contents18
UPSC Prelims GS2018Geography
  1. A1 and 2
  2. B2 only
  3. C1 and 3
  4. D3 only
Show answer

Answer: (D) 3 only

Correct Answer: (d) 3 only

  1. Statement 1 is WRONG:

    State Governments DO have the power to auction non-coal mines.

    Unlike coal (which is auctioned by the Central Government), non-coal mineral mining licences are auctioned by the respective State Governments.

  2. Statement 2 is WRONG:

    Both Andhra Pradesh and Jharkhand DO have gold deposits.

    India has gold deposits across several states including Andhra Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, and Rajasthan.

    Karnataka (especially the Kolar Gold Fields) is the most famous for gold.

  3. Statement 3 is CORRECT:

    Iron ore is found in Rajasthan, specifically in the Bhilwara district.

    India has iron ore deposits in many states including Odisha, Jharkhand, Chhattisgarh, Karnataka, Goa, and Rajasthan.

REMEMBER:

Non-coal mines = auctioned by STATE governments (not Centre).

Gold deposits exist in many states including AP and Jharkhand.

Iron ore exists in Rajasthan (Bhilwara).

Why this was asked

The Mines and Minerals (Development and Regulation) Amendment Act of 2015 gave state governments the power to auction non-coal mines, while coal mining remained with the central government.

UPSC is testing the federal division of mining powers - states control non-coal minerals while the Centre controls coal, a key distinction in India's mineral administration.

Mining Rights & Auction Powers

Indian Polity State Governments auction non-coal mines

Mining Rights & Auction Powers: Centre vs State Division

Must know

State governments auction non-coal mining licenses

Central government auctions coal mining licenses

Good to know

Mining is a state subject under List II of 7th Schedule

Constitutional Framework

Mining falls under the State List (Entry 23) in the Seventh Schedule, giving states primary authority over mineral resources within their territory. However, coal has special central oversight due to its strategic importance.

Auction Authority Division

Mineral Type

Auction Authority

Legislation

Key Feature

Coal

Central Government

Coal Mines Act, 2015

Strategic mineral, central control

Non-coal minerals

State Governments

MMDR Act, 2015

Iron ore, gold, limestone, etc.

Atomic minerals

Central Government

Atomic Energy Act

Uranium, thorium - central monopoly

MMDR Act 2015 Changes

Introduced auction system replacing discretionary allocation

States conduct e-auctions for non-coal mining leases

District Mineral Foundation receives auction premiums

Eliminated distinction between captive and merchant mining

Exam traps

Trap: Statement 1 says states cannot auction non-coal mines - this is WRONG

Common confusion: Coal vs non-coal auction authority is frequently reversed in options

Remember: Non-coal = State, Coal = Centre, Atomic = Centre

Gold Deposits in India

Geography Andhra Pradesh Jharkhand gold mines

Gold Deposits Distribution Across Indian States

Must know

Karnataka has the largest gold deposits (Kolar, Hutti)

Both AP and Jharkhand have gold deposits

Good to know

Gold found in 6+ states across India

India's Gold Mining

India has limited but significant gold deposits across multiple states. Karnataka leads production, while several other states have smaller but commercially viable deposits.

Major Gold-Producing States

State

Major Mines/Areas

Status

Key Feature

Karnataka

Kolar Gold Fields, Hutti

Active/Closed

Deepest mines in Asia

Andhra Pradesh

Anantapur district

Active

Gold & copper deposits

Jharkhand

Sonbhadra region

Active

Associated with copper

Rajasthan

Banswara, Udaipur

Active

Recent discoveries

Kerala

Wayanad district

Exploration

Alluvial gold

Madhya Pradesh

Sidhi district

Exploration

Diamond belt region

Gold Distribution Map

Gold deposits span 6+ states - both AP and Jharkhand have confirmed deposits
Gold deposits span 6+ states - both AP and Jharkhand have confirmed deposits

Source: Chegg India — Gold Mines in India: Top 10 Major Mines & Locations · www.cheggindia.com

Exam traps

Trap: Statement 2 claims AP and Jharkhand have no gold - this is WRONG

UPSC loves: Testing which states have/don't have specific minerals

Don't confuse: Kolar closed for commercial reasons, not lack of reserves

Iron Ore Deposits in India

Geography Rajasthan iron ore mines

Iron Ore Distribution: Major Belts & Mining Centers

Must know

Rajasthan has iron ore in Bhilwara district

Odisha is the largest iron ore producer

Good to know

India has 4 major iron ore belts

India's Iron Ore Wealth

India holds the 4th largest iron ore reserves globally. The deposits are concentrated in eastern and central states, with high-grade hematite being the predominant type.

Major Iron Ore Producing States

State

Major Districts

Type

Production Share

Odisha

Keonjhar, Mayurbhanj

Hematite

~50%

Jharkhand

Singhbhum, Dhanbad

Hematite/Magnetite

~25%

Chhattisgarh

Durg, Bastar

Hematite

~10%

Karnataka

Bellary, Chitradurga

Hematite

~8%

Goa

North & South Goa

Hematite

~3%

Rajasthan

Bhilwara

Magnetite

~2%

Iron Ore Belt Classification

# India's Iron Ore Belts
## **Odisha-Jharkhand Belt**
- Largest reserves
- Mayurbhanj-Keonjhar
- Singhbhum district
## **Durg-Bastar Belt**
- Chhattisgarh
- Bailadila ranges
- High grade ore
## **Bellary-Chitradurga Belt**
- Karnataka
- Kudremukh
- Baba Budan hills
## **Others**
- Goa (coastal)
- Rajasthan (Aravalli)
- Maharashtra (Ratnagiri)

Rajasthan's Iron Ore

Bhilwara district is the main iron ore area in Rajasthan

Deposits are of magnetite type (different from eastern India's hematite)

Located in the Aravalli mountain range

Lower grade compared to Odisha-Jharkhand belt

Exam traps

Statement 3 is CORRECT: Rajasthan does have iron ore mines

Don't assume: Just because Rajasthan isn't a top producer doesn't mean it has no deposits

UPSC pattern: Tests knowledge of mineral presence in non-obvious states

India's Mineral Distribution Patterns

Geography

Geological Basis of India's Mineral Distribution

Must know

Peninsular India has most metallic minerals

Sedimentary rocks contain coal and petroleum

Good to know

Archean rocks are richest in metallic ores

Geological Control

India's mineral distribution follows clear geological patterns. The ancient Peninsular Plateau, with its Archean and Dharwar formations, contains most metallic minerals, while younger sedimentary regions hold fossil fuels.

Geological Formation vs Minerals

Rock Type

Age

Major Minerals

Key Regions

Archean

Most ancient

Iron ore, gold, copper

Karnataka, Odisha, Jharkhand

Dharwar

Pre-Cambrian

Iron, gold, manganese

Karnataka, Andhra Pradesh

Gondwana

Carboniferous

Coal

Jharia, Raniganj, Korba

Tertiary

Recent

Petroleum, natural gas

Assam, Gujarat, Mumbai High

Alluvial

Quaternary

Placer deposits

River valleys, coastal areas

Regional Mineral Concentration

# India's Mineral Regions
## **North-Eastern Plateau**
- Jharkhand-Odisha belt
- Iron, coal, mica
- Chota Nagpur plateau
## **South-Western Plateau**
- Karnataka-Goa belt
- Iron, manganese, gold
- Western Ghats region
## **Central Belt**
- MP-Chhattisgarh
- Diamond, coal, bauxite
- Narmada valley
## **Western Regions**
- Rajasthan-Gujarat
- Petroleum, copper, zinc
- Aravalli ranges

Mineral Belt Map

Mineral distribution follows geological age - older rocks have metals, newer rocks have fuels
Mineral distribution follows geological age - older rocks have metals, newer rocks have fuels

Source: Apti Plus — Mineral Resources in India: Types, Distribution & Uses · aptiplus.in