West Bengal is one of the most gifted states in the country in terms of natural resources. The West Bengal’s mining policy, which was announced in June, 2002, reflects the state governments vision for development of minerals and mining based industries in the state. Production of coal in West Bengal increased by 5.1% to 17.46 million tones during April to December 2005 as compared to corresponding period of previous year. During the same period it produced 6.1% of total coal production in the country. The low level investment in coal mines for modernization and up gradation of technology is a major problem in increasing productivity in coal industries in the state.

The situation calls for large-scale investment with private participation for modernization of existing mines and exploration of new mines in the state. State government is making serious efforts to enlist the cooperation of major players in the field for the steady growth of this sector. The proposed outlay for 2006-07 in this sector is Rs. 212.68 billion. Some of the other minerals found in West Bengal are Apalite, Asbestos, Barytes, Base metals, China Clay, Ochre, Moulding Sand, Glass Sand, Graphite, Mica, Titanium Ore and many more.

The management of mineral reserves in India is the responsibility of the Central as well as the State government. The GoWB is committed to a process of identification and development of mineral wealth keeping in mind strategic interests and the needs for environmental friendly mining practices. Specific attention will be given to considerations of safety and elimination of adverse effects on the landscape.

The government is conscious of the need for increasing private participation and select de-reservation of mining areas in the public sector domain, keeping in mind the need for financial resources and technological improvements. Both foreign and domestic private enterprise, are welcomed in Research and Development activities. Joint Venture is encouraged by the state government in open cast mines. The government of India is contemplating amendments to the Coal Mines Nationalization Act so as to allow Indian companies to mine for coal and lignite in new coal blocks, Private participation is also being encouraged in the exploration of Apatite & Tungsten and other minerals, which have huge demand in use for mineral, based industries. The prospects of Coal Bed methane production potential from the Raniganj coal reserves are estimated at 12 million cu. Metres / day that is a useful source of energy for the future.

The GoWB aims to integrate the management of mineral resources with the overall strategy of development and exploitation of minerals and will be guided by the long term state goals and perspectives.