Physical and Monetary Asset Accounting of Mineral Resources in India

Abstract

In this paper, we have constructed the physical and monetary asset account of mineral resources in India using the SEEA framework. We have used the Net Present Value approach to prepare the monetary asset account of three crucial minerals,namely Manganese Ore, Iron Ore, and Bauxite. We found that reserves of all three mineral resources have declined from 1995 to 2015 due to the steady growth of mineralextraction.The extraction rate of bauxite has been much higher than that of iron ore and manganese ore. Though all the minerals gave negative resource rents to the economy in 1995,it turned positive and recorded growth in the subsequent years. Because of negative resource rent in 1995, NPVs of all minerals have been negative in 1995. Overall, the NPV of the resources has grown remarkably from 1995 to 2015.

Keywords: Green Accounting, Natural Capital Accounting, National Wealth, Natural Resource, Sustainable development