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Q27 (IAS/2018) Geography › Indian Economic Geography › Mineral resource distribution Official Key

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 not have gold mines. 3. Rajasthan has iron ore mines. Which of the statements given above is/are correct ?

Result
Your answer: —  ·  Correct: D
Explanation

The correct answer is option D (3 only).

**Statement 1 is incorrect**: The Central Government has entrusted state governments with mining related activities except in case of Coal, Petroleum & Natural gas and atomic minerals, and State Governments are the owners of minerals located within the boundary of the State concerned and have the authority to collect taxes/royalty on mineral rights.[1] This indicates that state governments do have power over non-coal mines.

**Statement 2 is incorrect**: Andhra Pradesh is the second largest producer of gold in India, with the main deposits found in Ramagiri (Anantapur district).[2] Additionally, gold is produced in Karnataka state followed by Rajasthan, West Bengal, Jharkhand, Bihar and Andhra Pradesh.[3] Therefore, both Andhra Pradesh and Jharkhand have gold mines.

**Statement 3 is correct**: Iron ore is found in Alwar, Bhilwara, Bundi, Jaipur, Sikar, and Udaipur in Rajasthan.[4] This confirms that Rajasthan has iron ore mines.

Therefore, only statement 3 is correct.

Sources
  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > 14.11 Coal, Coal Mines Act 2015 and MMDR Act 2015 > p. 427
  2. [2] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Table 7.11 > p. 21
  3. [3] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Table 7.11 > p. 21
  4. [4] Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 9: Distribution of World Natural Resources > iron ore > p. 28
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Consider the following statements : 1. In India, State Governments do not have the power to auction non-coal mines. 2. Andhra Pradesh a…
At a glance
Origin: From standard books Fairness: High fairness Books / CA: 10/10 · 0/10

This question is the perfect marriage of Economic Geography (NCERT/Majid Husain) and Current Policy (MMDR Act reforms). It rewards candidates who don't study Geography in isolation but link 'Where are the minerals?' with 'Who controls the minerals?'.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Do State Governments in India have the legal power to auction non-coal mines?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > 14.11 Coal, Coal Mines Act 2015 and MMDR Act 2015 > p. 427
Presence: 5/5
“Introduction: In the federal structure of India, the "Regulation of mines and mineral development" falls under the Union List. Accordingly, the Central Government frames rules and regulation regarding the development and extraction of minerals but it has entrusted the respective state governments with mining related activities except in case of Coal, Petroleum & Natural gas and atomic minerals. The State Governments are the owners of minerals located within the boundary of the State concerned and have the authority to collect "taxes/ royalty" on mineral rights. The Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India.”
Why this source?
  • Explains that 'Regulation of mines and mineral development' is allocated in the federal scheme and that state governments are entrusted with mining-related activities (except specified exceptions).
  • States are described as the owners of minerals within their boundaries and have authority over taxes/royalty on mineral rights — implying state control over non-central minerals.
Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Mines and Minerals (Development & Regulation) Act 1957: > p. 429
Presence: 4/5
“Further, a provision has been made for constitution of special courts by the state governments for fast-track trial of cases related to illegal mining.• Central government has been given powers to intervene where state governments do not pass orders within prescribed timelines. This will eliminate delay.• The Act provides for the creation of District Mineral Foundation (DMF) by the state governments in the districts where mining takes place.”
Why this source?
  • Shows practical state powers over mining (e.g., constitution of special courts, creation of District Mineral Foundation) indicating substantive state authority in mining governance.
  • Notes central intervention only where states fail to act within timelines — supporting primary state role with conditional central oversight.
Statement 2
Are there gold mines in Andhra Pradesh, India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Table 7.11 > p. 21
Presence: 5/5
“Karnataka: Karnataka stands first in the reserves and production of gold in India. It is obtained mainly from the Kolar, Dharwar, Hassan and Raichur districts. Some gold deposits have also been found in Belgaum, Bellary, Chikmaglur, Gulbarga, Mandya, and Shimoga districts. 'Hutti Gold Mine' Company is India's historic mine in which the production started in 1902.• 2. Andhra Pradesh: Andhra Pradesh is the second largest producer of gold in India. The main deposits of gold in Andhra Pradesh are found in Ramagiri (Anantapur district). In addition to this, gold is also found in Chittoor and Kurnool districts. Placer or Alluvial Gold: The gold obtained from the sand and sedimentary deposits of the rivers is known as placer gold.”
Why this source?
  • Explicitly states Andhra Pradesh is the second largest producer of gold in India.
  • Names main gold deposit locations in the state: Ramagiri (Anantapur) and also Chittoor and Kurnool districts.
  • Mentions both lode deposits and placer/alluvial gold, indicating multiple forms of gold occurrence in the state.
Statement 3
Are there gold mines in Jharkhand, India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Table 7.11 > p. 21
Presence: 5/5
“gold favoured geology. About 90% of the total gold is produced in the Karnataka state followed by Rajasthan, West Bengal, Jharkhand, Bihar and Andhra Pradesh. There are three important gold fields in the country, namely, (i) Kolar Gold Field, Mysore (Karnataka), (ii) Hutti Gold Field in Raichur (Karnataka), and (iii) Ramgiri Gold Field in Anantapur district (Andhra Pradesh). Kolar Gold Mines: Mining from the Kolar Gold Fields was started first in 1871. This field still contributes about 60% of the total gold production in the country. The gold mines of Kolar Field are more than 3000 m deep. Most of the gold has already been taken out and it is not economically viable to extract gold from a depth of more than 3 km. • 1.”
Why this source?
  • Snippet explicitly lists Jharkhand among states (after Karnataka and Rajasthan) that produce gold.
  • Placement in a list of gold-producing states implies active gold production/mining activity in Jharkhand.
  • The same source discusses major gold fields in India, giving context that state-level production lists indicate mining presence.
Statement 4
Are there iron ore mines in Rajasthan, India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 9: Distribution of World Natural Resources > iron ore > p. 28
Presence: 5/5
“Madhya Pradesh: Balaghat and Jabalpur. Maharashtra: Chandrapur and Ratnagiri districts. In addition to the above iron-ore is also found in Coimbatore, Madurai, North Arcot, and Salem, Tiruchirappalli, Tirunveli, (Tamil Nadu), Anantapur, Cuddapah, Guntur, Khammam Kurnool, Nellore, (Andhra Pradesh), Alwar, Bhilwara, Bundi, Jaipur, Sikar, and Udaipur, (Rajasthan), Kangra and Mandi (Himachal Pradesh), Almora, Garhwal, Nainital (Uttarakhand), Mahendragarh (Haryana), Birbhum, Burdwan and Darjeeling (West Bengal), Jammu and Udhampur (Jammu & Kashmir), Bhavnagar, Junagarh, Vadodra (Gujarat), and Kozhikode (Kerala).”
Why this source?
  • Explicitly lists Rajasthan districts (Alwar, Bhilwara, Bundi, Jaipur, Sikar, Udaipur) as places where iron-ore is found.
  • Presents Rajasthan locations alongside other Indian states, indicating presence rather than absence.
NCERT. (2022). Contemporary India II: Textbook in Geography for Class X (Revised ed.). NCERT. > Chapter 5: Print Culture and the Modern World > Iron Ore > p. 107
Presence: 3/5
“Iron ore is the basic mineral and the backbone of industrial development. India is endowed with fairly abundant resources of iron ore. India is rich in good quality iron ores. Magnetite is the finest iron ore with a very high content of iron up to 70 per cent. It has excellent magnetic qualities, especially valuable in the electrical industry. Hematite ore is the most important industrial iron ore in terms of the quantity used, but has a slightly lower iron content than magnetite. (50-60 per cent). In 2018–19 almost entire production of iron ore (97%) accrued from Odisha, Chhattisgarh, Karnataka and Jharkhand.”
Why this source?
  • Explains national production concentration (97% from Odisha, Chhattisgarh, Karnataka, Jharkhand), implying other states (like Rajasthan) have smaller/local occurrences.
  • Provides context that presence in Rajasthan would be minor relative to major producing states, supporting the idea of existence but limited scale.
Pattern takeaway: UPSC frequently uses 'Exclusionary Statements' (e.g., 'do not have', 'does not exist') in Geography. These are almost always false because geological resources rarely respect strict political boundaries or absolute absence in mineral-rich belts like Chota Nagpur.
How you should have studied
  1. [THE VERDICT]: Sitter. Statement 2 is a classic 'Absolute Negative' trap in Geography, and Statement 1 contradicts the widely discussed 2015 MMDR reforms.
  2. [THE CONCEPTUAL TRIGGER]: Mineral Resources (Distribution) + Regulatory Framework (Centre-State Relations in Mining).
  3. [THE HORIZONTAL EXPANSION]: Memorize the 'Not-So-Obvious' mines: Gold (Ramagiri-AP, Son Valley-JH); Copper (Malanjkhand-MP, Khetri-RJ); Uranium (Tummalapalle-AP, Jaduguda-JH); Diamond (Panna-MP). Know that States own minerals onshore, Centre owns offshore.
  4. [THE STRATEGIC METACOGNITION]: When studying resources, always check the 'Legal Owner' status. The shift from 'First-Come-First-Serve' to 'Auction' was the biggest economic reform of 2015—if you missed that macro-trend, your current affairs prep is too superficial.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Regulation of mines: Union List vs. State implementation
💡 The insight

Reference shows mining regulation is placed in the federal allocation but day-to-day mining activities have been entrusted to state governments.

High-yield for UPSC answers on federalism and centre–state division of powers; helps answer questions on which level governs specific resources and on policy conflicts. Master by mapping constitutional lists to sectoral examples and practicing centre–state case studies.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > 14.11 Coal, Coal Mines Act 2015 and MMDR Act 2015 > p. 427
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 27: INTER-STATE RELATIONS > II. Freedom of Inter-state Trade and Commerce > p. 408
🔗 Anchor: "Do State Governments in India have the legal power to auction non-coal mines?"
📌 Adjacent topic to master
S1
👉 State ownership of minerals and fiscal rights
💡 The insight

Evidence states that minerals within a state's boundary are owned by the state and that states can collect taxes/royalty on mineral rights.

Crucial for questions on resource federalism, state revenues, and mining policy; connects to topics like revenue-sharing, DMFs, and state economic powers. Learn by linking constitutional provisions to revenue/administrative mechanisms in sample policies.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > 14.11 Coal, Coal Mines Act 2015 and MMDR Act 2015 > p. 427
🔗 Anchor: "Do State Governments in India have the legal power to auction non-coal mines?"
📌 Adjacent topic to master
S1
👉 Central exceptions: coal, petroleum, natural gas, atomic minerals
💡 The insight

Reference explicitly lists coal, petroleum & natural gas and atomic minerals as exceptions to state entrustment.

Important for distinguishing when the Centre retains primary control — relevant for policy, auction regime questions, and recent reforms in coal/petroleum sectors. Use to anticipate questions on centralisation vs decentralisation in resource governance.

📚 Reading List :
  • Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > 14.11 Coal, Coal Mines Act 2015 and MMDR Act 2015 > p. 427
  • Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 27: INTER-STATE RELATIONS > II. Freedom of Inter-state Trade and Commerce > p. 408
🔗 Anchor: "Do State Governments in India have the legal power to auction non-coal mines?"
📌 Adjacent topic to master
S2
👉 Gold deposit locations in Andhra Pradesh (Ramagiri, Anantapur, Chittoor, Kurnool)
💡 The insight

Reference [1] lists Andhra Pradesh as the second-largest gold producer and specifies Ramagiri (Anantapur), Chittoor and Kurnool as main gold locations.

High-yield for UPSC: questions frequently ask mineral–district/state pairings and map locations. Knowing district-level gold sites aids in answering location-based MCQs, map tasks, and analytical questions on resource distribution and regional development.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Table 7.11 > p. 21
🔗 Anchor: "Are there gold mines in Andhra Pradesh, India?"
📌 Adjacent topic to master
S2
👉 Placer (alluvial) versus primary (lode) gold deposits
💡 The insight

Reference [1] explicitly mentions 'placer or alluvial gold' alongside deposit locations, highlighting different deposit types relevant to gold occurrence.

Important for GS and geography answers on mineral formation and extraction — explains why gold occurs in river sands vs hard-rock mines, links to river systems and environmental impacts, and supports reasoning in questions on mining methods and sustainability.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Table 7.11 > p. 21
🔗 Anchor: "Are there gold mines in Andhra Pradesh, India?"
📌 Adjacent topic to master
S2
👉 State-level mineral production profile (Andhra Pradesh's multi-mineral role)
💡 The insight

Reference [1] gives Andhra's rank in gold production; other references show Andhra's significance in manganese, iron and dolomite production, illustrating a multi-mineral profile.

Useful for comparative questions on resource endowment and regional economies. Mastering state-wise mineral contributions helps tackle MCQs, map questions, and essay/GS analyses on industrial location, raw material advantages, and state economic strategies.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Table 7.11 > p. 21
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Table 7.4 > p. 12
  • INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 5: Mineral and Energy Resources > Iron Ore > p. 55
🔗 Anchor: "Are there gold mines in Andhra Pradesh, India?"
📌 Adjacent topic to master
S3
👉 Gold-producing states of India
💡 The insight

The evidence names the principal gold-producing states and ranks Karnataka highest, with Jharkhand included among producers.

High-yield for UPSC geography: questions often ask which states produce particular minerals. Mastering state-wise production lists helps answer direct static GK and analytical questions comparing resource endowments.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 7: Resources > Table 7.11 > p. 21
🔗 Anchor: "Are there gold mines in Jharkhand, India?"
🌑 The Hidden Trap

The distinction between 'Major' and 'Minor' minerals. While Centre regulates Major minerals (Coal, Iron, Uranium), State Governments have complete power to frame rules and grant concessions for 'Minor Minerals' (Sand, Clay, Building Stones). Expect a question swapping these powers.

⚡ Elimination Cheat Code

Apply the 'Geological Probability' heuristic. Jharkhand is the 'Ruhr of India' (mineral heartland). To say it has 'no gold mines' (Statement 2) is a statistically improbable claim for such a mineral-rich zone. Once Statement 2 is eliminated, you are left with Options C and D. Statement 1 claims States have 'no power' to auction—this defies the logic of decentralization. Thus, 3 Only.

🔗 Mains Connection

Link this to Fiscal Federalism and Environmental Justice. The power to auction was given to states to boost State Revenues (Cooperative Federalism), and the District Mineral Foundation (DMF) was created under the same Act to address local environmental grievances.

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SIMILAR QUESTIONS

IAS · 2025 · Q89 Relevance score: 4.63

Consider the following statements : Statement I : In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories. Statement II : In India, the Central Government has the power to notify minor minerals under the relevant law. Which one of the following is correct in respect of the above statements?

IAS · 2019 · Q62 Relevance score: 3.41

With reference to the management of minor minerals in India, consider the following statements : 1. Sand is a 'minor mineral' according to the prevailing law in the country. 2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government. 3. State Governments have the power to frame rules to prevent illegal mining of minor minerals. Which of the statements given above is/are correct?

IAS · 2025 · Q6 Relevance score: 3.25

Consider the following statements : I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 critical minerals that it has identified. III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals. Which of the statements given above are correct?

IAS · 2019 · Q48 Relevance score: 2.54

Consider the following statements : 1. Coal sector was nationalized by the Government of India under Indira Gandhi. 2. Now, coal blocks are allocated on lottery basis. 3. Till recently, India imported coal to meet the shortages of domestic supply, but now India is self-sufficient in coal production. Which of the statements given above is/are correct?

IAS · 2015 · Q27 Relevance score: 2.33

Consider the following statements : 1. The Rajya Sabha has no power either to reject or to amend a Money Bill. 2. The Rajya Sabha cannot vote on the Demands for Grants. 3. The Rajya Sabha cannot discuss the Annual Financial Statement. Which of the statements given above is/are correct?