ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Resource Federalism in India: The Case of Minerals

While natural resources are spatially located, their development is of a wider national interest. Gains from their development accrue to a large common market though the process affects local lives and environments. The distribution of powers and functions across levels of government and the way they play out determine the effectiveness with which various policy goals are met. The need to examine these becomes important given the increased demands from resource-bearing states for a more "fair" distribution of resource rents in buoyant commodity markets, and from local people in resource regions for greater recognition of their rights and compensation for the effects of resource development. This paper examines the federal structure in India in the context of minerals, and suggests ways in which this can be strengthened through expanding the space and institutional capacity for local governance and by improving compensation and the sharing of resource revenues.

The authors are grateful to the Inter State Council for a nancial grant in support of this project, in particular its former secretary Amitabh Pande; to state governments and central ministries for their feedback; and to J L Bajaj of The Energy and Resources Institute (TERI), New Delhi, for his advice and guidance.

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