India’s natural resource production - interim estimate

georgism
natural resources
Author

Vinamr Sachdeva

Published

September 16, 2022

The objective of this post is to get an extremely rough estimate of the annual on-book natural resource production of India for 2019.

1 Non-fuel and non-atomic minerals

Production value (for 2019) of select minerals (excluding fuel and atomic minerals) mentioned in Annexure 2.1 of the Annual Report 2021-22 of Ministry of Mines = ~Rs. 1.54 lakh crores

source: Ministry of Mines

The minerals included are: Bauxite, Chromite, Copper Concentrate, Gold Primary, Iron Ore, Lead Concentrate, Manganese Ore, Zinc Concentrate, “Other Metallic Minerals”, Copper Ore, Gold Ore, Lead & Zinc Ore, Silver, Tin Concentrate, Diamond, Garnet, Limeshell, Limestone, Magnesite, Phosphorite, Sillimanite, Wollastonite, “Other Non Metallic Minerals” and Minor Minerals.

This possibly excludes some other minerals but also other natural resources, like crude oil, natural gas and coal. I couldn’t find readily available production figures for them, except coal, but I could find enough information (unit cost and number of units) to calculate them myself.

2 Crude oil

Production value: Rs. 1.3 lakh crores (2019)

Production per day = ~700,000 barrels/day (source: Ministry of Petroleum & Natural Gas)

Average crude oil price in 2019 = US$64.3/barrel (source) [Note: the price at which our companies sell might be different from Brent crude, so this figure might not be accurate.]

Average exchange rate for US$ to INR in 2021: 1 US$ = INR 70.4 (source)

Production value = (700000 barrels / day)x(365 days/year)x(US\(70/barrel)x(INR 70.4/US\)) = ~INR 1.3 lakh crore

3 Natural gas

Production value: Rs. 23,000 crores (2019)

Production per day = ~90 Million SCM (source: Ministry of Petroleum & Natural Gas)

Average natural gas price in 2021 = US$ 2.56 per MMBtu (source) [Note: the price at which our companies sell might be different from Henry Hub, so this figure might not be accurate.]

Production value = (90,000,000 SCM/day)x(365 days/year)x(0.039 MMBtu/SCM)x(US$ 2.56/MMBtu)x(INR 70.4/US$) = ~INR 23,000 crores

4 Coal

Production value: ~Rs. 1.1 lakh crores (2019) (source)

Annual production of Coal for 2019 = 730 million tonnes (source: Ministry of Coal)

Sale price: varies by type and grade (source: Ministry of Coal)

5 Total

Total Production value of Crude Oil, Natural gas, Coal and the selected minerals listed in Annexure 2.1 of Ministry of Mines for 2019 = Rs. (1.3 + 0.23 + 1.1 + 1.54) lakh crores = Rs. 4.17 lakh crores.

I will post a more accurate estimate with all minerals if any were left in this post, all official sources and with more accurate figures for prices in the future.