Fossil Fuels, Petroleum Basins & MMDR Framework
Fossil fuel reserves and statutory mineral governance underpin India's industrial energy security and raw material supply chains. Coal deposits are predominantly distributed across two geological formations: Gondwana coalfields (accounting for over 98% of reserves in river valleys like Damodar, Son, Mahanadi, and Godavari) and Tertiary coalfields in Assam and Meghalaya. Hydrocarbon exploration spans 26 sedimentary basins categorised by commercial maturity under the Directorate General of Hydrocarbons (DGH), with key producing regions in the Mumbai Offshore, Cambay Basin, Krishna-Godavari deepwater tracts, and Assam Shelf. The regulatory architecture is governed by the Mines and Minerals (Development and Regulation) Act of 1957, which was amended to introduce competitive e-auctions, composite exploration licences, and the District Mineral Foundation (DMF) for local community welfare.
Key Concepts & Examination Highlights
- Over 98% of India's coal reserves belong to the Gondwana geological age, primarily found in the Damodar, Mahanadi, Godavari, and Wardha basins.
- Jharia in Jharkhand is India's largest coalfield and the primary domestic source of prime coking coal used in metallurgical blast furnaces.
- Digboi in Assam, discovered in 1889, is India's and Asia's oldest operating oil well and refinery.
- The MMDR Amendment Act of 2015 mandated competitive e-auctioning of mineral concessions and instituted the District Mineral Foundation (DMF).