Ta b l e o f C o n t e n t s

Particulars Reference Page

to Para
From the Chairperson, GASAB’s desk iii
Preface by Additional Deputy CAG, GASAB v
Message of Shri Mukul Sanwal, IAS 1971 (retd) vii
Officers associated with this document ix
Executive Summary xi

Chapter – I Introductory
Natural Resource Accounting – the concept 1.1 1
Recap from the Concept Paper on NRA in India – released 1.2 2
by GASAB

CAG’s role in implementing NRA in the country 1.3 4

Chapter – 2 Need for the Asset Account

Asset Accounts on Mineral and Non-Renewable Energy 2.1 7
Resources
Goal 1 of the action plan envisaged in the Concept Paper 2.2 8
Mineral and Non-Renewable Energy Resources in India 2.3 8
Why – Mineral and Non-Renewable Resources 2.4 11
Advantages of consolidating the Asset Accounts on Mineral 2.5 11
and Non-Renewable Energy Resources

Chapter – 3 Asset Accounts in other countries

Initiation of environmental accounts 3.1 15
Compilation of natural resource asset accounts – some 3.2 15
experiences
Relativity of international experience with India 3.3 17
Page i

Chapter – 4 Stakeholder consultation and capacity building

Preparing the Paper 4.1 19
 Particulars Reference Page
to Para
Constitution of NRA Cells 4.2 19
Taking the States onboard in implementation of Asset 4.3 21
Accounts
State specific workshops 4.4 22
Capacity building 4.5 22
Chapter – 5 Pilot studies on templates of Asset Accounts
Pilot studies – templates 5.1 23
Monetising the physical flows 5.2 24
Close coordination and follow up 5.3 25
Results of pilot studies 5.4 25
Major challenges 5.5 29
Chapter – 6 Final templates of Asset Accounts on Mineral & Non-Renewable
Energy Resources – for implementation in States
Final templates – core framework 6.1 31
Final templates – Asset Accounts and subsidiary Accounts 6.2 32
Working out the opening balances 6.3 38
Sources of information/data and validations 6.4 38
Chapter – 7 Way Forward (milestones and timelines)
Way forward – the imperatives 7.1 41
Goal 1 – preparing the Asset Accounts for 2020-21 by 7.2 42
March 2022
Systems and processes for ensuring consistent dataflow on 7.3 44
supply and use of resources
Way forward – summing up 7.4 48
Annexures 49
Page ii

onwards
 FROM THE CHAIRPERSON’S DESK
Natural resources play a pivotal role for economic development of a country and are
crucial for their inbuilt value of inter-generational equity and sustenance. The need
for NRA took its first step at the UN conference on Human Environment in 1970 when
the relationship between economic development and environmental degradation
was discussed for the first time. This was followed up by the Brundtland Commission,
the Earth Summits in 1992, 2002 and 2012. Simultaneously, the UN also brought out
and adopted the System of Economic and Environmental Accounting – Central
Framework (SEEA – CF) in August 2012. NRA has deep inter-linkage with the
Sustainable Development Goals as 10 of the 17 goals directly or indirectly relate to
management of natural resources and their accounting.
The Concept Paper on NRA in July 2020 is an initiative towards handholding the
Government of India and the States in implementing NRA across the country. The
Paper envisaged a three-term plan commencing with the compilation of a periodic
database on five selected resources in the shape of Asset Accounts while prioritizing
on Mineral and Non-Renewable Energy Resources or the non-renewable resources.
Besides the action plans, we have also designed templates for compilation of the
Asset Accounts. These went through an extensive stakeholder consultation process,
to make them inclusive and robust. Subsequently, the templates were tested in five
States to ascertain their comprehensiveness and implementability. Goa, Meghalaya
and Rajasthan have completed the pilot studies successfully, preparing the model
Asset Accounts on Mineral and Non-Renewable Energy Resources for their States.
The results of the pilot studies and the templates were updated and circulated to the
members of the Consultative Committee of NRA Cell constituted by GASAB,
comprising stakeholder ministries in Government of India, Indian Bureau of Mines,
ICAI, five State Governments, Accountants General in the States and eminent
environmentalist Mr Mukul Sanwal. The templates, duly incorporating the
comments/suggestions of stakeholders, experiences on pilot run in the States and
suggestions of the Consultative Committee members, have been included in this
booklet for a wider test run which will lead to developing a well-defined
methodology for preparation of Asset Accounts, including identification of
underlying assumptions. All States are requested to undertake this exercise for the
Page iii

year 2020-21, to be completed by March 2022. This will enable taking the process
further with practical inputs from all states, and consequent development of asset
accounting procedures.
I appreciate the tremendous work by all concerned in developing the templates for
Asset Accounts of resources.
I am confident, the stakeholders and primarily the State Governments will continue
to attach due priority to the project and help us in attaining the next ambitious target
of preparing first draft of Asset Accounts on Mineral & Non-Renewable Energy
Resources in the States for the year 2020-21 by March 2022 as the basis for
stabilizing the methodology and fine tuning the Standard operating procedures. This
will be an important step forward in our endeavor to prepare comprehensive and
reliable Asset Accounts of natural resources in future.

NEW DELHI (Parveen Mehta)

DATED: 12-10-2021 Dy Comptroller and Auditor General
& Chairperson, GASAB

Page iv
 PREFACE

Government of India became signatory (25th September 2016) to the United Nations
General Assembly resolution titled, “transforming our world; the 2030 agenda for
sustainable development” consisting of 17 goals and 169 associated targets. Hence, it
has become our obligation to make efforts to be able to meet our international
commitments.
At its core, environmental and natural resources make an important contribution to the
long-term economic performance and can be considered economic assets, even when
they do not enter directly in the calculation of GDP of a country. The over exploitation of
these resources in recent times has resulted in harmful impact on the environment and
issues of climate change, extreme weather conditions and global warming have become
a regular phenomenon round the Globe. These are subject matter of discussions at all
Global and multilateral forums.
Natural resources play a vital role in the economic development of a country. They need
to be exploited in a sustainable manner so that the future generations can also avail of
their advantages. It is an accepted fact that “Measurement of a resource leads to its
better management”.
Conventional accounting captures data for measuring the economic activities only whereas
the environmental statistics are often generated focusing on a particular area or a question.
The concept of NRA has thus emerged to capture the intimate interplay between the
economic indices and the components of the natural environment including and not limited
to its inputs and resultant residuals, which is also closely, associated with the SDGs. The idea
is to quantify the non-renewable damage to natural resources and reduce from
economic GDP to arrive at Green GDP.
The Concept Paper on NRA in India released on 28 July 2020 inter-alia, envisaged short,
medium and long term goals starting from 2020 and converging with the target date of
SDGs, i.e. 2030 in consonance with the four stage implementation strategy suggested by
the System of Economic and Environmental Accounting – Central Framework. The first
such goal is preparation of Asset Accounts on Mineral & Non-Renewable Energy
Resources in all the States with the aim to gradually moving towards the national level.
The Paper also suggested tentative templates for the Asset Accounts supported by
detailed guidelines for their preparation by the States. These templates have gone
Page v

through wider consultation processes with the stakeholders and updated with the
results of pilot studies conducted in five States of which, Goa, Meghalaya and Rajasthan
have completed the pilots successfully by preparing the model Asset Accounts on Mineral
& Non-Renewable Energy Resources in these States. The Accountants General Offices
with the active support of the State Government Departments carried out this pioneer
work. The templates have also been vetted by a Consultative Committee set up by GASAB
consisting of representatives of ministries in Government of India, Indian Bureau of
Mines, ICAI, five State Governments and Accountants General in these States and eminent
environmentalist and senior bureaucrat Shri Mukul Sanwal, IAS 1971 (retd).
In order to take the States onboard as one of the most vital stakeholders, virtual
presentations were made to the State Governments highlighting the concept and
importance of NRA; works done by GASAB; key takeaways on implementation of Asset
Accounts; way forward and expectation from the States. The Chief Secretaries,
Additional CSs / Pr. Secretaries of Mines and Finance Departments besides the
Accountants General and State NRA Cell members attended the meetings. 28 States/UTs
have been covered between 31 August and 28 September 2021.
The efforts of the State Governments and the Accountants General in jointly forming NRA
Cells in the States and the enthusiasm and continued patronage of the NRA Cell members
towards the project are gratefully acknowledged. Achievements attained till date and
the release of the formats of Asset Accounts on Mineral & Non-Renewable Energy
Resources within the targeted timeline would not have been otherwise possible.
Unhindered support of the States is imperative for the success in preparation of the first
Asset Accounts on Mineral & Non-Renewable Energy Resources in the States for 2020-
21 by March 2022.
I take this opportunity to quote Neil Armstrong on landing upon the Moon – ‘That’s one
small step for man. One giant leap for mankind’. I am sure that this endeavor of GASAB
under the aegis of the CAG spearheading the implementation of NRA in India would serve
as the stepping stone for building up a robust framework of NRA in the country which
will not only help in meeting international commitments but would also aid in evidence-
based decision making by the policy makers. It will also help in monitoring resource-
usage aiding sustainable developments while on the other hand keeping necessary stock
of resources for our future generations.

(Ram Mohan Johri)

NEW DELHI Addl Dy Comptroller and Auditor General,
Page vi

DATED: 12-10-2021 Government Accounting Standards Advisory Board

 EXPERT’S TAKE
ABOUT SHRI MUKUL SANWAL
The biggest impact on natural resource use arises from the
population shift from villages to cities and into the middle
- Appointed to the IAS in 1971.
class. The initiative of the CAG provides a better
- First head of the Pollution
understanding of this transformation, and how best to manage Control Division in the GoI
middle class levels of living within ecological limits.
- Represented India at the Earth
The Asset Accounts designed by the organisation of CAG of Summit at Rio-de-Janeiro in 1992
and was a lead negotiator for the
India and GASAB team will not only help the country in Climate Change treaty, Agenda 21
achieving its international obligations but will also add and co-chaired negotiations
leading to the Rio Declaration.
immense value to evidence-based decision-making process
- Joined the United Nations in
being stressed upon by the hon’ble Prime Minister of 1993 as policy advisor to the
India. The formats are extremely well thought out and enable Executive Director of UNEP and
new policy issues, and comparisons of data will add value to later to the Executive Secretary of
the Climate Secretariat and was
good governance. The project must be seen as an evolving among the group of scientists who
process and solutions will emerge through discussions with contributed to the award of the
Nobel Peace Prize for 2007 to the
the States. IPCC.
There is a global commitment to meet the Sustainable - Associated with drafting of the
Development Goals, but there is no common understanding of National Action Plan on Climate
Change and is currently co-chair
how they affect society, and countries are implementing them of the Expert Committee on
responding to their national circumstances. The initiative of Strategic Knowledge on Climate
Change of the Ministry of Science
the CAG is significant for at least three reasons. and Technology.
First, instead of adopting a purely market based approach for - Visiting professor at the
valuation of natural resources relying on a number of University of Massachusetts,
Amherst, USA and Tsinghua
assumptions, as developed countries are doing, the GASAB is University, Beijing, China.
using assets, cost and revenue as extraction is regulated and - His Book – The World’s Search
analyzing these trends is an important part of good for Sustainable Development – A
Perspective from the global south’
governance, including identifying ‘leakage’ of revenue and was published by Cambridge
waste of natural resources. University Press.

Second, the shift from looking only at production to

considering usage, or consumption, reflects the most stable global trend of urbanization
and consumption as the major constituent of GDP. For example, construction material has
Page vii

the largest share of material use worldwide and is growing in India, while its impact on
natural resources and on revenue has yet to be widely appreciated. The initiative is
leading to broadening the scope of performance audit stressing the qualitative dimension.
Third, the exercise is emerging as a joint effort of the CAG and the States as new questions
are being raised on how we manage these ‘assets’ and solutions found in a cooperative
spirit of common understanding. Prompted by this exercise, States are also re-looking not
just the current system of collection of statistics but also seeing value in their
modification and comparing different sets of statistics.
The team guiding the effort has to be congratulated for their dedication and needs
encouragement as a bigger challenge will arise when ‘water’ with its deeper impact on
society is considered.

NEW DELHI (Mukul Sanwal)

DATED: 12-10-2021 IAS 1971 (retd)

Page viii
 Officers associated with this document

Ms Parveen Mehta,
Deputy CAG & Chairperson, GASAB
(Overall vision and guidance)

Shri Ram Mohan Johri,

Additional Deputy CAG, GASAB
(Concept visualisation, onboarding of stakeholders
and implementation strategy)

Shri Sudipta N Biswas,

Sr. Administrative Officer, GASAB
(Preparation of Concept Paper and this document,
Page ix

dovetailing the way forward with milestones and

designing the templates for Asset Accounts)
 Executive Summary

The GASAB Secretariat in CAG’s Office has come out with a Concept Paper on NRA in
India in July 2020 which, inter-alia, envisaged a three-term plan for implementation of
NRA in India in consonance with the strategy enshrined in the System of Economic and
Environmental Accounting – Central Framework of the UN as depicted below:

Short term goals Mid-term goals Long term goals

1. Preparation of Asset 1. Preparation of National Asset 1. Preparation of the
Accounts on Mineral & Accounts on Mineral & Non- economic accounts
Non-Renewable Energy Renewable Energy Resources highlighting depletion
Resources in States 2. Preparation of Asset Accounts adjusted economic
2. Initiation and in respect of other four aggregates; and
preparation of disclosure resources namely water, land 2. Preparation of functional
statement on revenues and forestry & wilelife accounts recording
and expenditure related resources in the States transactions and other
to natural resources 3. Preparation of supply and use information about
tables in physical and economic activities
monetary terms showing flow undertaken for
of natural resource inputs, environmental purposes.
products, and residuals

(2019-20 to 2021-22) (2022-23 to 2024-25) (2025 - 26 onwards)

NRA Cells have been constituted in the States and headquarters of GASAB to steer the
implementation process of NRA in India.

Besides the plans, the Concept Paper also suggested the templates for preparation of
Asset Accounts on Mineral & Non-Renewable Energy Resources. Simultaneous to the
release of the Concept Paper, pilot studies were initiated (August 2020) in five States, of
which, three States namely Goa, Meghalaya and Rajasthan have successfully completed
the studies, preparing the model Asset Account on Mineral and Non-renewable Energy
Resources in the States. The formats were reviewed based on the results of pilot studies
and circulated (April 2021) among the members of Central NRA Cell for review and
inputs/comments and suggestions. Based on the comments/suggestions, the formats
Page xi

were updated/modified and re-circulated to the members in July 2021. This was
followed up by a virtual meeting of the Central NRA Cell on 20 September 2021. The
templates have been finalised based on comments/suggestions received from the
members.
In order to take the States onboard, the Deputy CAG & Chairperson, GASAB has demi-
officially written to all the Chief Secretaries of States informing them about our
endeavour, works done, successes and way forward. Virtual presentations were made to
the States on the above and the State’s views/comments and suggestions during the
meetings have been gratefully acknowledged and taken into consideration while
finalizing the templates.

This Paper contains the final templates of Asset Accounts on Mineral and Non-
Renewable Energy Resources suggested for implementation in States to commence with
the Asset Accounts for the year 2020-21 to be completed by March 2022. Detailed
guidelines on methodology of collection of data, sources of data and depiction in the
prescribed templates have been included for guidance of the States.

Effective implementation of a system of generating Asset Accounts on Mineral and Non-

Renewable Energy Resources in the States would aid in evidence-based good governance
and have the following specific advantages.
• A one pager document on State-wise resources
• Compilation of physical and monetary values to enable cross verification of
revenues vis-à-vis actual extractions
• Consolidation of information over the years to provide pace of exploitation
• Analysis of revenue vis-à-vis market value/export value will make it easier to
assess and review the royalty rates – arrest windfall gains and protect State’s
revenue interest
• To bring out sustainability of resources – in years
• Enable assessment of revenue streams for the future
• To help in identifying alternate resources (energy/ economic)
• Close monitoring on illegal mining

Most importantly, consolidating the Asset Accounts will help with an outline of resource
bases across the States adding immense value towards the planning for resource
exploitation and policy framing for the present as well as sustainability of resources for
the future generations.

(Chapter VI and VII)

Page xii

Besides the final templates, the Paper also lays down a plan for further streamlining and
enhancing the internal control mechanism on mining activities in the States. The
highlights are discussed below:
➢ Installing an automated e-permit system with necessary bar-coding for
verification at the check-posts/railway yards/customs stations/material
acceptance points of industries etc.
➢ Automated systems could be installed for making available real time information
of permits in the check posts (both intra and inter-State/customs check posts at
international borders) so that the mining passes produced by the transporters at
the check-posts can be verified before allowing movement
➢ Systems need to be put in place to prevent transportation of minerals with
duplicate mining passes by making it mandatory to pre-register GPS enabled
carriage vehicles with the Mining Departments
➢ The unladen weight of the vehicles should be captured so that the mineral carried
could be easily ascertained by reducing the unladen weight and the Gross vehicle
weight slip obtained from the weigh-bridges and carried by the vehicle
➢ Automated/manual systems need to be installed for regular flow of information
from the points of consumption/sales/inter-state or outside the country
movements to ensure end-to-end veracity of actual extraction data
➢ Making it mandatory to produce electronically verifiable e-permits for
consumption, inter-state/international movement of minerals. Else, recovery of
full royalty/taxes/duties etc along with penalty as applicable may be strictly
enforced
➢ Enhancing the quantum of penal measures to act as high deterrent on illegal
mining activities
➢ Enact stringent penal measures, wherever not available, on departmental
authorities/personnel/agencies including their authorised personnel for not
ensuring valid e-permits or royalty/penalty collections while allowing
transportation/ purchase/ consumption-similar to Income Tax Act.
The Paper also suggests the States to install an automated/app-based data collection
mechanism by March 2022 for easing the process of compilation of Asset Accounts in
subsequent years.
Successful implementation of Asset Accounts on Mineral and Non-Renewable Energy
Resources in the States would mean that India not only meets the first of the four-stage
Page xiii

implementation strategy prescribed by the SEEA – CF but will also get into the elite list
of countries where Asset Accounts on natural resources (importantly non-renewable
resources) are generated.
(Chapter VII)
CHAPTER 1
INTRODUCTORY

1.1 Natural Resource Accounting – the Concept

Economic growth over decades has largely been an outcome of our continued reliance on
natural resources. Growth is clearly the major engine to create livelihood options; its
reliance on increased resource use has, however, led to many negative externalities. The
current paradigm of resource-led economic development sees a coupling between the
availability of natural resources and economic growth.

Natural resources play a crucial role for economic development of a country and are
crucial for their inbuilt value of inter-generational equity and sustenance.

Over the years, there has been increasing awareness about environmental issues across the
globe and growing concern about the depletion and degradation of the natural resources.
This concern gave birth to the idea of sustainable development goals which aims at ending
poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.
The sustainable development dialogue has brought to the fore the direct and indirect impact
of human activity on the environment and there is now a consensus that continuing economic
growth and human welfare are integrally dependent on the benefits obtained from the
environment. The critical trade-offs between managing ecosystems and environmental
resources for future sustainable economic and social development need to be understood for
effective policy interventions.
Agenda 21,
Natural resources play a vital role in the sustainable
Rio +20, SDGs:
economic development of any country. They need to Integrate nature into
be exploited in a sustainable manner so that the future decision making!!!
generations can also avail of their advantages. The
rampant over –exploitation of these resources in
recent times has resulted in harmful impact on the environment and issues of climate change
and global warming have become a matter of discussions and deliberations round the Globe.
Page1

Conventional accounting captures data only of the measurable economic activity. In order to
overcome this shortcoming and to capture the intimate interplay between the economic

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

indices and the various components of the natural environment, the concept of NRA has
emerged.

It is based on the concept

“Measurement of a resource leads to
its better Management.” The idea is
to quantify the damage to the
environment so that it can be reduced
from GDP to arrive at Green GDP. It
would assist in taking policy decisions
in respect of matters affecting
environment directly and indirectly
and bring us in a position to use our
resources on a more sustainable basis
and reducing the negative impact on
the environment.

In keeping with the developments, the United Nations has been working towards an
universally acceptable framework on environmental resource accounting which culminated
into release of the System of Economic and Environment Accounting - Central Framework
(SEEA - CF) in 2012 which is the latest internationally accepted framework.

1.2 A recap from the Concept Paper on NRA in India – released by GASAB

The Concept Paper on Natural Resource Accounting in

India - a product of Government Accounting Standards
Advisory Board (GASAB) was published in July 2020.
Keeping the international as well as national
developments on NRA in view and the mandate of
GASAB in suggesting accounting framework for
enhancing the quality of decision making and public
accountability combined with suggestion of Working
Group on Environmental Auditing under the INTOSAI
to handhold the country in developing NRA in mind,
the Concept Paper was a result of GASAB's efforts
towards helping the causes of environmental
accounting in India, climate change, and sustainable
Page 2

development goals.

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

The SEEA (CF) prescribes a four-stage implementation process by compiling the

following accounts as mentioned below:

• Asset Account for individual asset in physical and monetary terms

showing stock changes
Stage 1

• Supply and use tables in physical and monetary terms showing flow of
inputs, products and residuals
Stage 2

• A sequence of economic accounts highlighting depletion adjusted

economic aggregates, and
Stage 3

• Functional accounts which records transactions and other information

about economic activities undertaken for environmental purposes
Stage 4

However, while prescribing the aforesaid milestones for implementation of NRA across
the world, the SEEA (CF) has also envisaged constraints to be faced by the countries in
implementing NRA. SEEA (CF), thus, prescribed for flexibility in designing the accounts
based on the specific environmental issues faced by a Government. Depending upon the
specific environmental issues faced, a country may choose to implement only a selection
of the accounts included in the SEEA (CF). The SEEA (CF) provides that even if a country
desires eventually to implement the full system, it may decide to focus its initial efforts
on those accounts that are most relevant to current issues.

The Paper, inter-alia, envisaged short, medium and long term goals in consonance with
the four stage strategy suggested by the SEEA Framework, as mentioned below:
Page 3

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Short term goals Mid-term goals Long term goals

1. Preparation of Asset Accounts 1. Preparation of National Asset 1. Preparation of the economic

on Mineral and Non-Renewable Accounts on Mineral and Non- accounts highlighting depletion
Energy Resources in States Renewable Energy Resources adjusted economic aggregates; and
2. Initiation and preparation of 2. Preparation of Asset Accounts in 2. Preparation of functional accounts
disclosure statement on respect of other four resources recording transactions and other
revenues and expenditure namely water, land and forestry & information about economic
related to natural resources wildlife resources in the States activities undertaken for
environmental purposes.
3. Preparation of supply and use tables
in physical and monetary terms
showing flow of natural resource
inputs, products and residuals

(2019-20 to 2021-22) (2022-23 to 2024-25) (2025 - 26 onwards)

1.3 CAG's role in implementing NRA in the country

Constitutional Provisions:

Article 150 of the Constitution provides that the accounts of the Union and of the States
shall be kept in such form as the President may, on the advice of the Comptroller and
Auditor General of India, prescribe.

CAG’s (DPC) Act, 1971:

Section 10 – 12 of the CAG’s (DPC) Act requires the CAG to compile, prepare and submit
the accounts to the Legislature. Section 23 provides for powers of CAG to make
regulations for carrying into effect the provisions of this Act in so far as they related to
the scope and extent of audit, including laying down for the guidance of the Government
Departments the general principles of Government accounting.

The CAG of India is a member of the INTOSAI (International Organisation of Supreme

Audit Institutions), founded in 1953, which is an autonomous, independent and non-
political organisation with special consultative status with the ECOSOC of the UN.

The WGEA (Working Group on Environmental Auditing), is a group constituted by the

INTOSAI - aims to encourage the use of audit mandates and audit methods in the field of
environmental protection and sustainable development by both members of the Working
Group and non-member SAIs. The WGEA and its members share a commitment to use
Page 4

the power of public sector audit to leave a positive legacy for future generations, by
improving the quality of the environment, the management of natural resources, and the
health and prosperity of people around the world.
An initiative of Government Accounting Standards Advisory Board
 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

The WGEA through its report of 2010

titled 'Environmental Accounting -
current status and options for SAIs',
provided the following
recommendations:
In countries that are not currently
developing NRA, SAIs could take the
following actions:
• Determine the value of environmental
accounts for their government by Snapshot from the Paper on Environment Accounting -
Current status and options of SAIs – WGEA (INTOSAI)
identifying the costs and benefits of
developing environmental accounting
within the country, and /or
• Assist the Governments in the development of environmental accounts, by
✓ Identifying challenges to applying environmental accounting in their country;
✓ Recommending strategies to overcoming challenges;
✓ Identifying goals for developing environmental accounts;
✓ Identifying agencies and organisations that compile information useful for NRA,
and/or
✓ Identifying best practices in NRA.

In view of the responsibilities enshrined in the Constitution, the CAG’s DPC Act and the
suggestions of WGEA, this initiative of GASAB under the auspices of CAG is an endeavour
to assist and support the Government of India as well as the States in implementing NRA
across the country.

Page 5

An initiative of Government Accounting Standards Advisory Board

-
 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

CHAPTER - 2
NEED FOR THE ASSET ACCOUNTS

2.1 Asset Accounts on Mineral & Non-Renewable Energy Resources

Currently, many policymakers lack information needed to understand the potential

environmental impact of their decisions, and the economic implications of changes to
their environment and natural resources. Environmental accounts have the potential to
provide key information that policymakers can use to understand the state of the
environment, how it is changing over time, and the consequences of various policy
options. For example, in recent times two major auction of natural resources like coal
blocks and electro-magnetic spectrum were made by the Government of India. Though
a broad outline of available stock was used as a base, availability of detailed physical
stock and flows on a year-to-year basis with revenues generated on such extractions and
their actual market value (as envisaged in the format of Asset Accounts) would have
further helped the Government in effective decision making keeping an eye on the
sustainability of these resources.
In essence, Asset Accounts should be able to address the following, that they are :
• Purposeful and consequential for the account-user who depends on the reported
information;
• Able to measure change in a defined account subject through time;
• Organised to enable comparisons and crosschecks in an internally consistent manner;
and
• Comparable with other relevant accounts so it can provide the basis for more detailed
or aggregated analyses.

Environmental account ought to have the fundamental characteristics of relevance,

credibility, and legitimacy for the accounts to be effective and play different roles in the
Page 7

development and value of the account. First, the account must have relevance to the
users and align to their needs. Credibility would mean that while adequately
representing the subject, the account would effectively render the desired information.
An initiative of Government Accounting Standards Advisory Board
Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Even if the environmental accounts are well-founded, relevant, and credible, legitimacy
is also another important value to reckon while establishing NRA. Legitimacy is the
degree of acceptance of an account by the account users. Legitimacy reflects the
perception that the production of information and technology has been respectful of
stakeholders’ divergent values and beliefs, unbiased in its conduct, and fair in its
treatment of opposing views and interests (Cash et al. 2003). These values guide and
influence the environmental accounting principles and every aspect of the accounting
process.

2.2 Goal 1 of the action plan envisaged in the Concept Paper

The initial stage of implementation strategy of NRA is preparation of the Asset Accounts
on individual resources. The SEEA (CF) has listed out seven resources of which five major
resources namely Mineral & Non-Renewable Energy Resources, Water Resources,
Forestry & Wildlife Resources and Land Resources have been considered for taking up
initially in the Concept Paper on NRA as mentioned in the table and diagrams below:

SEEA – CF prescribes seven 5 Major Resources considered – in line with

resources prescriptions of Green National Accounts – A
Framework
– Mineral and Energy Resources
– Land and soil Resources
Mineral and
– Timber Resources Water
Energy
– Aquatic Resources
– Other Biological Resources
(except timber and aquatic),
and Water Resources Forestry
Land
(&Wildlife)

2.3 Mineral and Non-Renewable Energy Resources - in India

India possesses a wide range of minerals and other natural resources. Domestically
supplied minerals form an important underpinning for India's diversified manufacturing
industry, mining industry as well as a source of modest export revenues.

Among mineral resources, iron ore (generally of high quality) and ferroalloys - notably
Page 8

manganese and chromite - are particularly abundant and all are widely distributed over
the country. Other exploitable metallic minerals include copper, bauxite (the principal
An initiative of Government Accounting Standards Advisory Board
 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

one of the aluminum), zinc, lead, gold and silver. Among important non-metallic and non-
fuel minerals are limestone, dolomite, rock phosphate, building stones, ceramic clays,
mica, gypsum, fluorspar, magnesite, graphite and diamonds.

Further, a comparison of the stock of minerals during 2005 and 2015 would indicate that
a number of minerals are depleting fast. This, while pointing towards possible
indiscriminate use of natural resources, also highlights the importance of preparation of
physical stock and monitor their usage on sustainable basis.

Among the fossil fuels, India is

well endowed with coal and
modestly so with lignite. Coal
supplies are widespread and
comes from some 500 mines, both
surface and deep - pit distributed
over a number of States. By far the
most important coal producing
region is along the Damodar
River, including the Jharia and
Raniganj fields in Jharkhand and
West Bengal which account for
about half the nation's output and
virtually all the coal of cooking
quality. Also, coal is in abundant
and easy to mine in the Chota
Nagpur Plateau, which is the
principal source area for coking
coal.
Estimated crude oil reserves in India
Domestic reserves of petroleum
and natural gas, though abundant,
do not meet the country's large demand. Petroleum fields are located in eastern Assam
(India's oldest production region) and in Gujarat and offshore in the Arabian Sea on an
undersea structure known as the Bombay High. Several other onshore and offshore
petroleum reserves have been discovered, including sites in Tamil Nadu, Andhra Pradesh
and Arunachal Pradesh. As per the EnviStats 2018 compiled by the Ministry of Statistics
Page 9

& Programme Implementation, total crude oil recoverable reserves stood as 635.59
million MT while reserves of natural gas stock was calculated as 1,251.99 billion cum.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Important mineral and mineral oil reserves in various parts of the country are shown in
the table and map below:
Table showing mineral reserves across the country
State Prominent Minerals
Andhra Barytes, Ball Clay, China
Pradesh Clay, Dolomite, Fireclay,
Iron, Quartzite,
Manganese, Laterite,
Mica, Ochre, Quart/silica
sand
Assam Petroleum and Natural
Gas, Coal
Chhattisgarh Coal, Dolomite, Bauxite,
Iron, Fireclay, Limestone,
Quartzite, Quartz/silica
sand
Goa Iron, Bauxite
Gujarat Bauxite, Marl, Petroleum
and Natural Gas, Chalk,
Bentonite, China clay,
Dolomite, Lignite,
Limestone, Laterite,
Quartz/silica sand,
Fireclay, Manganese,
Talc/soapstone/steatite

Jharkhand Coal, Graphite, Bauxite, Iron, Copper, Kyanite, Dolomite, Manganese,

Talc/soapstone/steatite
Karnataka Gold, Iron, Manganese, Limestone, Dolomite, Dunite Magnesite, Quartz/silica sand,
Granite, Silver, China clay, Chromite, Copper, Quartzite
Madhya Diamond, Copper, Manganese, rock phosphate, Limestone, Diaspore, Laterite, Bauxite,
Pradesh Coal, Pyrophyllite, Dolomite, Iron, Ochre, China clay
Maharashtra Fluorite, Kyanite, Bauxite, Manganese, Coal, Iron, Limestone, Quartz/silica sand,
Quartzite, Sillimanite, Dolomite
Odisha Chromite, Garnet, Bauxite, Manganese, Iron, Quartzite, Dolomite, Coal, Pyrophyllite,
Titanium minerals, Dunite, Limestone, Quartz/silica sand
Rajasthan Lead and zinc, Wollastonite, Silver, copper, Limestone, Rock phosphate,
Page 10

Talc/soapstone/steatite, Gypsum, Ochre, Bentonite, Fuller's earth, Feldspar, Calcite,

Ball clay, China clay, Dolomite, Fireclay, Iron, Lignite, Mica, Quartz/silica sand, Granite,
Manganese

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Tamil Nadu Vermiculite, Dunite, Fireclay, Graphite, Lignite, Limestone, Magnesite, Quartz/silica
sand, Titanium Minerals, Zircon, Sillimanite, Bauxite, Feldspar
Telengana Coal, Manganese, Limestone, Barytes, Dolomite, Feldspar, Quartz/silica sand, Laterite,
Shale, Chinaclay, Iron
Uttar Pradesh Diaspore, Pyrophyllite, silica sand, Coal
West Bengal Coal, China clay, Fireclay, Graphite, Quartz/silica sand

2.4 Why - Mineral and Non-Renewable Energy Resources

The Asset Accounts on Mineral & Non-Renewable Energy Resources have been
considered as the most important goal as it consists of non-renewable resources while
other major resources fall in the other group and gets renewed naturally.

In keeping with the implementation stages as envisaged in the SEEA (CF), the flexibility
embedded therein and the importance of non-renewable resources discussed above
coupled with the prescription of SEEA that a country may decide to focus its initial efforts
on those accounts that are most relevant to current
Mineral & Non-Renewable issues, preparation of Asset Accounts on Mineral &
Energy Resources, being non-
Non-Renewable Energy resources have been
renewable resources have
been considered as the first conceptualised as the need of the hour and thus
goal planned as the short term goal No. 1.

The Asset Accounts on Mineral & Non-Renewable

Energy resources, once generated, will have the capacity to provide valuable information,
at a glance, to the policy makers at the State and Central levels regarding the availability,
use, resource generation and balance stock along with a forecast about the stream of
revenues that the stock of resources will generate for the future generations. The stock
of resources could also assist the policy makers in identifying future alternative source
of energy and financial resources. These are discussed in details in the succeeding
paragraph.

2.5 Advantages of consolidating the Asset Accounts on Mineral & Non-

Renewable Energy Resources

A system of collation of a periodic database in the shape of an Asset Accounts on available

natural resources linked with inter-related factors like revenues and costs involved in
Page 11

exploitation of such resources, their sustainability for the future generations would be
extremely helpful in monitoring the sustainability of resources, effective decision making
and ensuring evidence based good governance, adoption/adaption of SEEA besides

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

attaining other pressing international obligations like the Sustainable Development

Goals and Climate Change.
Besides the above, the Asset Accounts would aid in good governance with the following
specific inputs:

Resoureces
at a glance
Physical
Close vis-a-vis
monitoring on monetary
illegal mining values

Enable State wise Pace of

identify overview of exploitation
alternate mineral
resources repository

Revenue vis-
Revenue
a-vis market
streams
value

Sustainability
of resources

Thus, the Asset Accounts, once compiled, has the potential of multi-pronged
advantages for the States in particular and the country at large as summarised below:

Resources at a glance: The Asset Accounts would enable a one pager document on the
resource availability of each State.
Provide invaluable information and datasets on mineral repository and potential
of States – could be used to showcase for varied purposes.
Physical flows and monetary values mapped – enabler of working out the value of
Page 12

extracted resources and also to help in monitoring of realisation of revenues vis-à-vis

extraction of resources to help in identifying cases of leakage of revenue.

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Pace of exploitation: Down the years, compilation of Asset Accounts would help in
drawing up the pace of exploitation of resources over the years thus bringing out vital
inputs like the pattern of resource usage and sustainability of resources – in years.

A sample table showing benefits of Asset Accounts over the years

Revenue vis-à-vis market value: Ascribing money value with reference to the
royalties/revenues combined with the market value would aid in continuous analysis of
the royalty/duty/taxes to help the public exchequer while keeping a tab on windfall gains
on commercial exploitation and resale/consumption.

Sustainability of minerals in years – when analysed with revenues, has the potential
to point towards revenue streams for future and will also enable States to identify
alternate resources – both economic and energy resources.

Close monitoring on illegal mining: The inter-operability of supply and use of

resources and their incorporation in the system of preparation of Asset Accounts would
enable close watch on illegal mining. This will not only help in optimizing resource base
but will also help in containing unscientific mining thereby aiding in conservational
efforts and restricting environmental degradation due to unscientific and unsustainable
mining activities.

Thus, to sum up, Asset Accounts-once compiled, would bring out State-wise
mineral repository along with other inputs like actual stock of resources, usage
pattern, their values - aiding in evidence-based policy framing and most
Page 13

importantly sustainability of resources for future generations.

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

CHAPTER 3

ASSET ACCOUNTS IN OTHER

COUNTRIES

3.1 Initiation of environmental accounts

Though the latest framework on NRA was released in 2012, different countries including
the United Nations were relentlessly working on this agenda since 1970s. The UN set up
the Brundtland Commission in 1983 to formulate 'a global agenda for change' hinged on
the concept of sustainable development as an alternative to unfettered economic growth.
The Paper, released in 1987, defined sustainable development as development that
meets the need of the present without compromising the ability of future generations to
meet their own needs. Simultaneous to the efforts of the UN, different developed and
some developing nations attempted to draw up their environmental accounts, in which,
countries like Australia, Canada, France, Germany, Norway are the frontrunners as
briefly discussed in the succeeding paragraphs.
3.2 Compilation of natural resource asset accounts - some experiences
A review of the international experience in compiling environmental accounts in
different countries brought out the following:
Australia

Both mineral and energy accounts are compiled – Land, timber and water account also
compiled

Physical and monetary accounts compiled

Time series of accounts : 1995 onwards

Produced at national level and annually

Follows SEEA methodology

Page 15

Figures are added to the national balance sheet

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Salient outputs of Asset Accounts:

• The value of Australia's environmental assets increased nearly 150 per cent over the
years 2002-03 to 2016-17
• Land is the most valuable natural asset while iron ore is the most valuable sub-soil
asset
• Environmental assets have made up the largest share of Australia's capital base since
2014-15
Canada
Mineral, energy and timber asset accounts compiled

Physical and monetary accounts - current prices plus a volume index

Time series of accounts : 1961 onwards

Produced at national and provincial levels and annually

Follows SEEA methodology

Figures are added to the national balance sheet

Salient outputs of Asset Accounts:

• Though the value of the natural assets have increased, yet there is clear indication of
steady downward trend in the volume of natural assets
The Netherlands
Only energy - natural gas and oil accounts are compiled

Physical and monetary accounts

Time series of accounts: 1990 onwards

Produced at national level and annually

Follows SEEA methodology

Salient outputs of Asset Accounts:

• The asset accounts provided information on opening stock, new discoveries,
Page 16

extraction and other changes and closing stock

• One of the components of monetary accounts is Government revenue

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

The United Kingdom

Energy - natural gas and oil accounts are compiled, Timber and Fish Accounts are also compiled

Physical and monetary accounts

Time series of accounts: 1989 onwards (physical) and 2011 onwards (monetary)

Produced at national level and annually

Follows SEEA methodology

Salient outputs of Asset Accounts:

• The asset accounts clearly depicted continuous reduction in natural resources like oil
and natural gas
The Philippines
Selected mineral resources (gold, copper, chromium and nickel) and energy resources (coal,
oil and natural gas) are compiled

Physical accounts only for energy and both physical and monetary accounts for minerals

Time series of accounts: 2002 onwards for mineral and 2000 for energy resources

Produced at national level and periodically

Follows SEEA methodology

Salient outputs of Asset Accounts:

• Asset Accounts of minerals include sub-classes as well
• Oil and natural gas stock registered a steady declining trend
3.3 Relativity of international experience with India

The above discussions would reveal that the major countries have varied degrees of
achievement and objectivity in preparing their environmental accounts.
Understandably, the prescriptions of the SEEA (CF) which provides for flexibility in
designing and preparing the accounts coupled with the provision for countries to decide
on their initial focus on those accounts which are most relevant to current issues have
Page 17

been fundamental basis of operationalizing NRA in these countries.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Thus, the way forward laid down in the Concept Paper on NRA to initially focus on the
preparation of Asset Accounts on Non-Renewable Energy Resources keeping the
country-specific needs in view bridges the efforts in India envisaged by the GASAB under
aegis of CAG of India with the internationally accepted principles as discussed above and
as prescribed in the SEEA (CF).

Page 18

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

CHAPTER 4
STAKEHOLDER CONSULTATION
AND CAPACITY BUILDING

4.1 Preparing the Paper

Commencing the work in mid-2019, four draft Papers were floated between November
2019 and the final version in July 2020. While formulating the way forward and
suggestive templates of Asset Accounts, extensive consultation process was carried out
as detailed below:

• Four drafts issued between November 2019, January 2020, April 2020 and July 2020) –
to ensure optimum consultation
• Paper shared and inputs sought from – Department of Environmental Studies, Delhi
University; The Energy & Resource Institute, ICAI, Ministry of Statistics and Programme
Implementation, Ministry of Mines, Indian Bureau of Mines (IBM), Ministry of
Environment, Forest and Climate Change, Ministry Jal Shakti and Department of Land
Resources
• Finance Secretaries in the State Government shared with copies of the Paper with the
request to suggest inputs/suggestions
• Senior management of CAG of India
• Board members of Government Accounting Standards Advisory Board
• All field Offices of CAG of India – both Audit and A&E Offices across the country
• Paper peer reviewed by
• International Center for Environmental Audit and Sustainable Development (iCED),
Jaipur and Director General of Audit, Environment and Scientific Departments Audit,
New Delhi

4.2 Constitution of NRA Cells

Page 19

Central NRA Cell

In order to steer the implementation strategy envisaged in the Concept Paper, an NRA
Cell has been constituted at GASAB headquarters at CAG’s Office with experts from

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

diverse stakeholder ministries in the Government of India, five State Governments, the
Accountants General in these five States, besides environmental specialists. Besides
steering the implementation strategy, the Cell is mandated to help with technical insights
especially on the templates for Asset Accounts on the resources. The constitution of the
Cell is as under:
The Core Cell Consultative Committee
• Deputy CAG & Chairperson, GASAB • Member of Government Accounts Wing,
• Additional Deputy CAG, GASAB Commercial Wing and iCED under CAG
• Sr. AO, GASAB & NRA Cell • Five State Governments – Gujarat, Jharkhand,
• AAO, GASAB & NRA Cell Meghalaya, Karnataka and Uttarakhand
• Other staff members • Accountants General of Audit and A&E Offices
of these five States
• Members from Ministries of Mines,
Environment, Forest & Climate Change, Jal
Shakti, Land Resources, Statistics Programme
Implementation
• Member from IBM
• Member from ICAI
• Shri Mukul Sanwal, IAS 1971 (retd)
Details of members, designation/credentials and their contact details are at Annexure -
A.
The first revised draft of the Asset Accounts on Mineral & Non-Renewable Energy
resources as it stood after the modifications based on the inputs from pilot studies in
States were circulated to the members in April 2021 with the request to provide
inputs/comments/suggestions. Responses were appropriately incorporated and the
draft Asset Accounts revised and re-circulated to the members in July 2021. Annotated
statement showing the comments/suggestions of the members of the committee and
action taken thereon is at Annexure - B. The members met through a virtual meeting on
20 September 2021 to deliberate upon the final formats of the Asset Accounts to arrive
at finality on these templates for implementation across the States. The minutes of
meeting are at Annexure – C.
NRA Cell in the States
In addition to the NRA Cell constituted in GASAB headquarters, NRA Cells have also been
formed in the States with joint representations from Audit, A&E Offices of CAG of India
and technical resource persons from the concerned State Government Departments like
Page 20

Geology & Mining, Finance, Environment, Forest and Climate Change, Statistics and Land
Resources. The State NRA Cells are intended to enable co-ordination between the

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Accountants General Offices in the States with the local State Governments and steer the
implementation process associated with the project.
The State NRA Cells are already functional in 25 States while in other States it is under
finalisation. These State level Cells served as key impetus, besides regular interactions
from GASAB Headquarters, in completing the pilot studies in the States of Goa, Meghalaya
and Rajasthan. In other States also where the Cell is functional, regular interactions are
being held between the Accountants General Offices and the State Government
Departments easing the implementation process with consultations and mutual co-
operations.
4.3 Taking the States on-board in implementation of Asset Accounts

The Concept Paper has envisaged initiation of the implementation process with
preparation of Asset Accounts on Mineral & Non-Renewable Energy Resources in the
States, targeted for the year 2020-21 to be completed by March 2022. To take the States
onboard in this ambitious project, the matter was demi-officially taken up (August 2021)
with the Chief Secretaries of the States by the Deputy CAG & Chairperson, GASAB
intimating the highest echelons in the States about the endeavour of GASAB on NRA and
also our vision on implementational roadmap. This was followed up with virtual
presentations to the State Governments underlining the concept and importance of NRA;
international developments vis-à-vis those in India, implementation strategy suggested
by SEEA framework and those adopted/works done by GASAB and successes
thereagainst; key takeaways on implementation of Asset Accounts on Mineral & Non-
Renewable Energy Resources in the States; way forward and expectation from the States.

Seven meetings were organized between 31 August 2021 and 28 September 2021 in
which 28 States/UT have participated. Major points emanating out of the meetings are
summarised below:
• The State Governments while appreciating the initiative of GASAB on implementation
of NRA across the country, assured of their full co-operation and participation.
• The States agreed that the Asset Accounts would put forth a valuable database and
capture information on exploitations – both, commercial or for Government needs,
sustainability of resources, revenues vis-à-vis market trends while keeping close watch
on the illegal mining aspects.
Page 21

• The targets and timelines envisioned are achievable due to availability of

data/information with the concerned Departments in the States.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

• State specific workshops would help further disseminate the idea and expectations vis-
à-vis discussing on the concerns and constraints of the Officers and staff at the grass
root level.
Minutes of meetings are appended in Annexure - D.
4.4 State-specific Workshops
At the instance of Office of the Principal Accountant General, Audit – II, Gujarat, GASAB
has organized state specific workshop on NRA for the State of Gujarat wherein the
Officers of the Audit, A&E Offices of the State along with the departmental Officers of the
State Government participated. Similar workshops had also been held for the States of
Punjab and Karnataka. In other States, either the State Accountants General have held
workshops/presentations for the State Government, or they are working out dates for
such workshops. These workshops aided in furthering the implementation process by
enabling both way communications. While there were presentations from the GASAB
headquarters, the Officers of the State Government departments were urged to share
their views/concerns and constraints. Number of issues were discussed during the
meeting as put forth by the State authorities and solutions arrived after detailed
deliberations.
4.5 Capacity Building

Simultaneous to the release of the Concept Paper and the pilot studies, capacity building
was of utmost significance to effectively carry forward the implementation of the project.
Under the Knowledge Center of GASAB at Regional Training Institute at Prayagraj,
continuous virtual workshops were organized training about 100 participants in each of
the programmes covering Group A and Group B Officers working on implementation of
NRA in the field Offices. These workshops were designed to serve as platforms for
dissemination of information, requirements for the Asset Accounts and doubt clearing
sessions. It is undenying that the workshops helped largely in timely completion of the
pilot studies.

Page 22

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

CHAPTER 5
PILOT STUDIES ON TEMPLATES OF
ASSET ACCOUNTS

5.1 Pilot Studies – templates

Framework would remain only a concept unless tested for implementation through real
time scenarios. While GASAB Secretariat endeavoured to design and suggest the
templates of Asset Accounts of all five resources shortlisted, in view of the short term
goal 1 to prioritise on Mineral & Non-Renewable Energy Resources, pilot studies were
instituted in five States, namely Andhra Pradesh, Goa, Meghalaya, Rajasthan and Uttar
Pradesh immediately upon release of the Concept Paper.

Suggested templates: The SEEA – CF

provides flexibility to embed the
country specific needs while
implementing NRA. Accordingly, while
the mother template of Asset Account Meghalaya
depicting the opening balance, Rajasthan
additions, extractions and closing Uttar
Pradesh
balance has been retained in toto, the
sub and detailed tables have been
designed to suit the country specific Goa

needs and aimed at capturing the data

Andhra
to disclose the physical flows of Pradesh
resources along with the stock, distinct
segregation of extractions for
Government, Private, Exports and other
purposes, monetised value showing the Government revenue streams as well as the
Page 23

average market/sale value, sustainability of resources for the future, information on the
extent of illegal mining etc.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Guidelines for preparation of Pilot Studies: The templates were supported with
detailed guidelines on compilation of data and other methodologies for capturing data
for the accounts, and source for acquiring such information/data for the tables. Besides
the guidelines, a sample table mapping the physical flows and the revenues therefrom
was created with the information available in the Finance Accounts and Audit Reports of
the State of Andhra Pradesh – to detail that compilation of physical and monetary flows
were possible.
Methodology for working out the opening balance: As the pilot studies were being
conducted post-release of the Concept Paper, financial year 2018-19 or 2019-20 were
suggested to be taken up. Availability of data for ascertaining the opening stock was
identified as a major challenge. As the IBM releases the State-wise mineral repository
every five years and the latest one available pertained to 1 April 2015, this was suggested
to be considered as base and the opening balance worked out in the following manner:
Methodology for working out the opening balance with available information
Name of Opening stock as Annual extraction during Closing stock as on 31
minerals on 1 April 2015 March 2018 or opening
2015-16 2016-17 2017-18 stock of 1 April 2018

Resultant balance of
in the National Mineral
States may be included
Minerals economically

Stock of minerals as of

Inventory of IBM may

1 April 2015 available

extraction of minerals
may be obtained from

deduction of annual
in the Asset Accounts
important for each

the Departments

productions of three years

Monthly actual

from the opening balance

be used.

The States were advised to incorporate the methodology adopted for working out the
opening balance and other aspects through appropriate notes to accounts for easy
referencing and understanding.
5.2 Monetising the physical flows
The Concept Paper delved deep into the valuation methodologies suggested by SEEA,
research papers, those adopted by other countries combined with the flexibility allowed
in SEEA. After detailed analysis of the different approaches, the Concept Paper has
suggested monetising the physical flows on two accounts – first being the revenue
involvement method while the second is the average sale/market value of produces.
Page 24

While the revenue method has been found also adopted by the Netherlands, it actually
suffices one of the targets of the building the Asset Accounts, i.e. providing information
on revenue streams for the policy makers. The actual sale/market price has been
An initiative of Government Accounting Standards Advisory Board
 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

adopted as the website of IBM is already capturing these data in respect of major
minerals making them readily available and usable for compilation of the Asset Accounts.
The sale price/market value of minor minerals are captured by the State Government
Departments mainly the Statistics Departments and the departments administering the
resources.
5.3 Close co-ordination and follow up
As discussed in the Chapter on stakeholder consultation and sensitization, the pilots were
carried out by the State Accountants General with joint collaboration with the State
Government Departments while GASAB headquarters maintained overarching control
and supervision on the field studies. Besides regular contacts with the field teams, mid-
term appraisals chaired by senior management of GASAB was organized to discuss the
progresses and way forward to identify detailed milestones and timelines. These efforts
paid dividends with timely completion of pilot studies in three States by March 2021.
5.4 Results of pilot studies
The pilot studies yielded the model Asset Accounts on Mineral and Non-Renewable
Energy Resources in three States which are first of its kind in the country. The highlights
of the reports are summarised as under:

• A one-page compilation of mineral resources of the State

• Exhaustive coverage on important Mineral & Non-Renewable Energy Resources
of States
• Physical flows of minerals during the period brought out
• Two-pronged monetisation done – revenues and market values
• Revenues and market values of resources brought together – variations ranging
between three to ten times pointed out
• Sustainability of resources in years
• Revenue leakage and illegal mining detected and pointed out
• Stock of minerals available at the end of the Report period

While there were positive outcomes as discussed above, the studies also highlighted
Page 25

deficiencies in the systems and processes followed in the states, viz, in Goa, the State
authorities were found not maintaining the stock position of minor minerals which
hindered assessment of opening and also closing stock. The State also did not maintain

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

segregated data on mineral-usage for Government, Private etc purposes which were
found to be available in other two States.
Snapshots of the pilot study reports are given in the succeeding paragraphs:

GOA

Due to mining ban, there was no physical flows related to major minerals. However,
compilation of data on minor minerals was brought out.

The opening stock as on 1 April 2019 in respect of major minerals was worked out by
considering the figures of National Mineral Inventory as published by the IBM as of April
2015 and by deducting the actual extractions during the subsequent four years as per
methodology suggested in the Concept Paper.

Page 26

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Meghalaya

The study, besides bringing out extractions for Government, private sectors, also worked
out the sustainability of resources in years. By comparing the figures of department of
Geology and Mining with those of the Customs Department (export data), the study
brought out substantial illegal mining activities.

MEGHALAYA

RAJASTHAN

The Rajasthan study included comprehensive coverage of resource bases incorporating

altogether 39 Mineral & Non-Renewable Energy Resources divided into fossil fuel, major
minerals and minor minerals. The resources were further divided into sub-
classifications of resources. The opening stock was ascertained by considering the
figures of IBM as of 2015 as base and reducing them with actual extractions/production
figures.
Page 27

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Also, the pilot studies brought out major variations between the Government revenues
and average market/sale prices which ranged between approximately upto ten times as
shown below.

Page 28

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

5.5 Major challenges

This being a pioneer project, States conducting the pilot studies faced with real-time
difficulties most of which were foreseen and discussed in the Concept Paper. The major
ones are discussed below:

Availability of ready-to-use data: Though many States have electronic mechanisms for
issuance of mining permits, yet, availability of consolidated data on extraction of Mineral
& Non-Renewable Energy Resources was still an issue faced by the field teams. Data had
to be collected from the Directorate of Geology and Mining and their field offices,
compiled and got validated by the Department.
Page 29

Further, in Goa, it was observed that the State was not in possession of stock of reserves
of minor minerals though the Minor Minerals Concession Rules makes it imperative to
work out stock of minerals for obtaining approval of Government of India on mineral

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

extractions. In absence of this, stock of minerals could not be ascertained and the study
was limited to physical flows of minerals during the year.

Stock of minerals: An area of major concern, data on stock of minerals as on the opening
date of the year of study was not readily found available. The States resorted to
methodology suggested in the Concept Paper to use the National Mineral Inventory
figures of 2015 and then reduced it with extractions during subsequent years to arrive at
the estimated reserves.

Information on minor minerals: Unlike major minerals which is well compiled by the
IBM as regards their production as well as average market/sale values – month wise and
yearwise, information on minor minerals, both physical flows and market prices was not
readily available. These figures had to be collected from the concerned
departments/Statistical departments of the States.

Lack of co-ordination: In Meghalaya, gaps between the data of administrative

departments and the exit points of the State were noticed which pointed towards need
for strengthening the control mechanism as the pilot study revealed cases of illegal
extractions.

Page 30

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

CHAPTER 6

FINAL TEMPLATES - ASSET

ACCOUNTS ON MINERAL & NON-
RENEWABLE ENERGY RESOURCES
– for implementation in States

6.1 Final templates – core framework

The templates of Asset Accounts on Mineral and Non-Renewable Energy Resources have
been finalised after incorporating the comments of the Consultative Committee members
and the experience gained in successful completion of pilots in three States. While the
core framework as prescribed by the SEEA – CF has been retained, designs of the sub and
detailed tables have been worked out based on country specific needs and other
peculiarities besides constraints/data availability etc. Table 1 provides the format for
the core framework while Tables 2 and 3 provide templates for compiling the Asset
Accounts and subsidiary Asset Accounts to capture data required for the core framework
and also to serve as repository of an inclusive informative database for use by policy
makers, stakeholders, academia and other interest groups.
Table 1
Basic asset account on Mineral & Non-Renewable Energy Resources
Opening stock of environmental asset
Growth in stock
Discoveries of new stock
Upward reappraisals
Reclassifications
Total addition of stock
Reduction of stock
Extractions
Normal loss of stock
Catastrophic losses
Downward reappraisals
Reclassification
Total reduction in stock
Revaluation of the stock*
Page 31

Closing stock of environmental assets

* Only applicable for asset accounts in monetary terms.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

As discussed in some of the preceding Chapters, flexibility is inbuilt in the framework and
SEEA suggests that the entities commence preparation of the Asset Accounts with
available information which can be reviewed and constantly updated in subsequent
years after receipt of updated information. Accordingly, the core framework allows
reconciliatory measures like upward and downward re-appraisals, reclassifications,
revaluation of stock etc.
Information/data in Table 3 may be filled in first and the resultant consolidated
data may be fed in Tables 1 and 2 appropriately.

6.2 Final templates – Asset Accounts and subsidiary Accounts

Table 2
Asset Accounts on physical flows of Mineral and Non-Renewable Energy Resources along
with sustainability of resources

Classification Sub- Opening Addition Reduction in stock Closing Sustainability

classification stock of to stock* Extracted by/for Other Total stock of of resources in
(may vary proved Govt Private extractions extraction proved years****
from State to reserves Sector* Sector *** reserves
State)/ *
UNFC Code (in tonnes/cum - as the case may be)
Major
Minerals

Fossil fuel

Minor
minerals

Other
resources, if
any

Information compiled in Table 3 may come in this table in consolidated form.

* - to include - Growth in Stock, discoveries of new stock, reclassifications etc
Page 32

** - Extractions for Government sector may be further classified into extractions for State
Government Departments, Central PSEs/State PSUs, Central and State Autonomous Bodies,
Municipal bodies and other local authorities
An initiative of Government Accounting Standards Advisory Board
 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

*** - to include - extractions other than those for Government and Private Sector, such as
exports, untaxed extractions (if any) allowed by Government, normal reduction in stock,
catastrophic losses, downward reappraisals, cases of illegal mining detected,
reclassifications etc
**** - Considering the yearly extraction during the current year vis-à-vis the closing stock
In certain cases, sand, stone, boulders are extracted from riverine areas and thus these could
be listed as renewable resources. However, as these are managed under the Minor Mineral
Concession Rules and governed by the Geology & Mining Departments in the States, these
resources may also be covered here with appropriate qualifications through notes under
the tables.
The United Nations Framework classification for Fossil Energy and Mineral Reserves and
Resources 2009 (UNFC) is a universally applicable scheme for classifying evaluation energy
and mineral reserves and resources
Table 3

Subsidiary Asset Accounts linking detailed physical flows in respect of Mineral and Non-
Renewable Energy Resources with the valuation of resources

Particulars Classification/ Physical Valuation of resources

Sub- unit (in
classification of tonnes/ Revenue Total revenue Average Market
minerals (as cum) receivable receivable value
per the extracted
priorities of the showing (in crore) (as ascertained
State Govt, showing Govt, from the IBM or
Governments)/ Private and Private and State Statistical
UNFC Code other sector other sector Department) %

(` in crore)

(a) (b)
Opening
stock/availability of
resources at the
beginning of the
year
Page 33

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Additions during
the year:
Growth in Stock
Discoveries of new
stock
Reclassifications
Total Addition:

(c) (d)
Actual reductions
during the year:
Extractions as
reported by the
State Government
Department of
Geology & Mining,
Petroleum,
Environment and
Forest (on recovery
of royalty, cess, fees,
NPV etc) #

Revenue related to exploitation of resources out of total revenue included in (e)

Statement 14 of State Finance Accounts/Statement 8 of Union Finance
Accounts pertaining to four major heads1

Other extractions,
not taxed (if any)

Normal reduction in
stock
Catastrophic losses
including natural
and manmade
disasters
Downward
reappraisals
Reclassifications

Production loss

Exports

Reduction due to
mining activities not
approved by Deptts
Page 34

1 Petroleum, non-ferrous mining and metallurgical industries, coal and lignite heads of receipts
An initiative of Government Accounting Standards Advisory Board
 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Total reduction: (f) (g)

Extractions
permitted during
the year

(h) (i)
Closing stock
(Will depict
future
revenue
streams)

Notes (General):
The information on extraction of minerals for Government, Private and other
Sectors may include data on actual extraction of resources during the year
States may amend the format of the Asset Accounts to suit their need/availability of
data in keeping with the flexibility allowed by SEEA - CF; however, the overall
framework and the information to be gathered may be kept intact.
• Opening Stock of resources: The SEEA (CF) envisages that, ideally, estimates of the
opening and closing stocks of an asset should be compiled with information pertaining to
the reference dates of the accounting period. However, if information in respect of those
dates is not directly available, relevant information may need to be time-adjusted. From
time to time, new information will emerge that leads to a change in the assumptions
underlying a set of estimates. When additional information is being incorporated, it is
important that the estimates continue to reflect the quantities and values that could
reasonably be expected at the reference dates. For the opening stock, only proved reserves
should be considered. A suggestive methodology for working out the opening balance is
provided with this document.
• Additions: Additions in stock includes mainly discoveries in new stock,
reclassifications, reappraisals, opening up of new blocks etc to add with proved reserves. Of
these, opening up of new blocks, new discoveries may occur in some years; otherwise,
additions will more or less remain 'nil'. However, the reappraisals/reclassification may be
used to adjust changes detected in stock in future years.
• Reductions: The SEEA (CF) prescribes reduction in stock to be enumerated under
Page 35

five distinct categories, i.e. extractions, normal reductions in stock, catastrophic losses,
downward reappraisals, and reclassifications. Of these, reduction on account of extraction
of resources would be annual phenomenon which may be captured regularly while other
causes of reduction may occur once in a while. To embed country specific needs, other
An initiative of Government Accounting Standards Advisory Board
Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

elements of reduction like extraction not taxed, production loss, mining not authorised by
departments have been included under this category.
• Closing stock: The resultant value of opening stock, plus the additions, reduced by
the reductions would lead to closing stock of resources. However, non-ascertainability of
opening stock would result in non-determination of the closing stock. Similar to opening
stock, appropriate explanation would have to be inserted against reasons hindering
calculation of closing stock, if such need arises.
Notes (Specific references):
(a) Rate(s) of royalty/ies in respect of each of the resources and their sub-classifications
multiplied by opening balance of physical units to appear here. Sub-tables may be prepared
as required to work out the figures in respect of each of the resources.
(b) Average market price as available on the website of IBM in respect of each of the
resources multiplied by the opening balance of physical units to appear here. Sub-tables
may be prepared as required to work out the figures in respect of each of the resources.
(c) Total of column 4 (total revenue receivable) in respect of extraction of resources to
appear here.
(d) Average market price as available on the website of IBM/available with the
States/Union in respect of each of the resources multiplied by the resources extracted
during the year to appear here.
(e) - Revenues earned by the entities by way of royalties, taxes and duties on extraction of
mineral resources as reported through the Finance Accounts may be incorporated here. As
the Indian Finance Accounts are maintained on cash basis, actual amount of revenue
received during the year may only be incorporated here. Reasons for variation between (c)
and these figures of Finance Accounts which includes lease rents and other administrative
charges may be appropriately clarified through notes.
(f) - Rate(s) of royalty/ies in respect of each of the resources multiplied by total extracted
resources to appear here. Sub-tables may be prepared as required to work out the figures
in respect of each of the resources.
(g) - Average market price as available on the website of IBM/ available with the
States/Union in respect of each of the resources multiplied by the total extracted resources
to appear here.
Page 36

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

(h) Rate(s) of royalty/ies in respect of each of the resources multiplied by closing balance of
physical units to appear here. Sub-tables may be prepared as required to work out the
figures in respect of each of the resources.
(i) Average market price as available on the website of IBM/ available with the
States/Union in respect of each of the resources multiplied by the closing balance of physical
units to appear here. Sub-tables may be prepared as required to work out the figures in
respect of each of the resources.
# - please refer to preceding table - extraction of resources may be shown separately for
Government, Private and Other Sectors which mainly includes exports, untaxed
extractions etc
% - The IBM compiles and releases average market value of minerals on monthly basis.
Besides, the Statistical Departments in the States maintain the market prices of minor
minerals. The average of these prices could be used to fill in these columns. Sub-tables may
be prepared as required to work out the figures in respect of each of the resources.
$ - Information may be gathered from all possible sources as discussed in Table 1 of Para
7.3 including those detected by the administrative Departments like Mining, Police,
Environment & Forests and also from other sources like NHAI, PWD, Inspection Reports of
Accountant General (Audit) etc – examined and incorporated in this row with suitable
notes.
There is a system of generating flags pointing towards illegal mining in the States by the
IBM in collaboration with National Remote Sensing Center. These flags may be followed up
to ascertain follow up done by the State Governments and volume of illegal mining detected
– for incorporation in this row.
Also, NRA Cell may carry out independent joint verification to ascertain loss of natural
resources due to illegal mining following up the flags of IBM which have not been attended
to by the State Governments. The results may be appropriately disclosed here with
necessary notes.
If necessary, the National Remote Sensing Center, Hyderabad may be collaborated to assess
the extent of illegal mining and results thereof included in this table. Notes to that extent
may be included.
However, the cross verifications may be subject to availability of time and resources.
Page 37

While working on the illegal mining aspects, sub-judice cases may be given special attention
and appropriate disclosures regarding the same should be made in the accounts. In such
cases, working out the revenues may be avoided till final verdict of the court cases.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

• Physical unit may be reckoned as per the usual practice, like standard cubic meter
for natural gas, tonnes for metallic and non-metallic minerals, cubic feet for timber, cubic
meter for minor minerals and so on.

6.3 Working out the opening balances

The IBM provides the stock of minerals (metallic, non-metallic and fuel minerals) every
five years and the latest such database as of April 2015 is available which could be held
as the base. The Department of Geology and Mining, Petroleum, Environment and
Forests in the States maintain the data on extraction of resources, month wise. These
data can be collected for the years till the accounting year to arrive at the opening
balance. In case of non-availability or difficulty in availability of data on extraction of
minerals from the State Government Department, monthly production data of minerals
available on the website of the IBM could be reduced to arrive at the opening stock of 1
April 2020. The following table has the details.
Methodology of working out the opening balance with available information
Name of Opening stock as Annual extractions during Closing stock as
minerals on 1 April 2015 on 31 March
2015-16 2016-17 2017-18 2018-19 2019-20 2020 or
opening stock
of 1 April 2020
Figures to be obtained from the district

Resultant
mining offices under the Department
Stock of minerals as of 1 April 2015

departments on minor minerals to

available on the website of IBM for
major minerals and data available
Minerals economically important

included in the Asset Accounts as

balance of
for each of the States may be

with the State Government

per the priority of the State

deduction of
of Geology and Mining

annual
be considered
Governments

productions of
three years from
the opening
balance

6.4 Source of data and validations

The sources of information/data for filling the templates of Mineral & Non-Renewable
Energy Resources could be following:
• The National Mineral Inventory an Overview as on 01.04.2015 available at
www.ibm.gov.in for the opening stock of reserve/Indian Minerals Yearbook 2018 -
Page 38

State Reviews/Monthly statistics of Mineral Production (www.ibm.gov.in).

• Coal Directory of India Coal Statistics (www.coalcontroller.gov.in).

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

• Energizing India’s Progress (www.petroleum.nic.in).

• Primary source of data on extraction of resources would be the Department of
Geology and Mining, Environment Forest and Climate Change, Department of
Petroleum etc in States.
• Sources of data for valuation of resources would the above departments in States and
also the data on average sale/market price available on the website of IBM and the
Department of Statistics in States.

The duly filled templates would have two stage validation checks. First by the
concerned Departments of the State Government and second by the State Audit
Offices.

Second stage
validation by the
Audit Office
First stage
validation by State
Govt Departments
Data collection and
filling the templates

Page 39

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

CHAPTER 7
WAY FORWARD –
Milestones and timelines

7.1 Way forward – the imperatives

Milestones and timelines envisaged for achieving Goal No. 1 under short term goals, i.e.
preparation of first Asset Accounts on Mineral and Non-Renewable Energy Resources in
the States for the year 2020-21 by March 2022 evidently calls for strategic planning
keeping in view the imperatives with flexibilities allowed in SEEA framework and
challenges associated with this
Stock
highly important yet untrodden (Opening
path. and
closing
balance)
Preparation of a foolproof Asset
Accounts would largely depend
upon four main pillars for success. Physical
Mapping flows
These are ascertaining the Asset
supply (addition
Accounts
opening stock of resources, and use and
extraction)
information on physical flows or
additions and reductions during
the year, monetising the physical
flows of resources and end-to-end Monetisation
(revenue and
encrypting the supply and use and market price)
verifying veracity of data.

Keeping in view
activities involved in
the compilation process
of Asset Accounts vis-à-
Page 41

Mandatory Recommendatory Desirable

vis the challenge that
this is a completely
unchartered area and also keeping the scope of flexibility enshrined in the SEEA

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

framework in mind, the four components of preparation of Asset Accounts are classified
under three distinct categories, one – activities those are mandatory during the period,
second is what is recommended while the third one consists of those that are desirable
as the implementation process begins and goes along.
7.2 Goal 1 – preparing the Asset Accounts for 2020-21 by March 2022

In view of discussions in preceding paragraph, the Goal 1 on preparation of Asset

Accounts on Mineral & Non-Renewable Energy Resources for the year 2020-21 by March
2022 is targeted to be taken up as follows:

Sub-goal 1 Sub-goal 2 Sub-goal 3

Target - November'21 Target - January'22 Target - March'22

• Collection of •Working out • Finalise report

information/dat opening and and validations
a on additions resultant closing •Other information
and extractons balance on usage
•Monetise
extractions

Sub-goal 1 – Target of completion by November 2021:

Sub-goal 1.1 Physical Flows (mandatory): The most vital component of an Asset
Account is the physical flow during the reporting period. Further, the data/information
on actual extractions are readily available with the departmental units/State-level
Offices. These information can, therefore, be quickly collected and compiled thereby
enabling preparation of the basic additions and extractions of resources for the year
2020-21.

Sub-goal 1.2 Monetising the extractions (mandatory): The physical flows on

extractions may be monetised based on Government revenues and average market/sale
price. While average royalty rates/duties/fees etc applicable to the concerned resources
during the year may be used for working out the revenues attributable to the resources
extracted, average figures of actual market/sale price as captured by the IBM (monthly
Page 42

figures of major minerals available on the website of IBM) may be used for attributing
market value to the resources. For minor minerals, information of market values could

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

be obtained from the State Statistics Department or the Departments administering the
resources.

Sub-goal 2 – Target of completion by January 2022:

Sub-goal 2.1 Opening balances (recommended): Methodology suggested for opening

balance in para 6.3 of Chapter 6 could be useful in working out the balances. As the data
available in National Mineral Inventory is used to reducing the extractions as provided
by the Department, the figures of stock may be ‘tentative’ for the Asset Accounts 2020-
21. Based on the opening balances and the additions/extractions, the closing stock may
be worked out which may also be marked as ‘tentative’.

The IBM is expected to bring out the National Mineral Inventory as on 1 April 2020 by
mid-2022. Hence, the Asset Accounts of subsequent year 2021-22 would be ascertained
by reducing the actual extractions incorporated in Asset Accounts 2020-21 from the
balances brought out in the National Mineral Inventory as of April 2020. Thus, in light of
the flexibility provided by SEEA framework, while the balances of Asset Accounts 2020-
21 would be ‘tentative’ the same will be reconciled with the available data of National
Mineral Inventory as on 1 April 2020 during next year using the tools like upward and
downward reappraisals/reclassifications as available in the basic table of Asset Accounts
prescribed by SEEA, thus, making the figures real-time.

As regards the minor minerals which are not captured in the National Mineral Inventory,
information would need to be gathered from the concerned Departments in the States.

Sub-goal 3 – Target of completion by March 2022:

Sub-goal 3.1 Finalisation of Asset Accounts and validations (mandatory): Upon

compilation of the physical flows and balances, the report may be shared with the State
Government Departments for validations and further inputs, if any. All efforts may be
made to finalise the report by March 2022. Information which are not readily available
may be skipped and necessary notes on unavailability of those information may be
inserted in the Accounts.

Sub-goal 3.2 Include other information on illegal mining etc (desirable): The
formats of Asset Accounts in Chapter 6 require collection of additional information on
Page 43

mining activities not approved by departments through cross verification of information

from the user agencies etc. Due to paucity of time, these activities are marked as
‘desirable’ for the current Asset Accounts for 2020-21. However, for the subsequent

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

year’s Accounts, these are mandatory activities to highlights gaps in the processes and
systems besides revenue leakages. These are discussed in detail in succeeding paragraph.
7.3 Systems and processes for ensuring consistent dataflow on supply and use
of resources

While some leverages will be applicable for Asset Accounts 2020-21 being a greenfield
area and time/resource constraints, necessary systems and processes would have to be
put in place well before April 2022 so that automated systems of data capture for Asset
Accounts 2022 onwards could be enabled and installed well in time. These are discussed
in the succeeding paragraphs.

Capturing the physical flows regularly

The Departments of Geology and Mining/Petroleum/Environment and Forests and their

field units in the districts are principal source of revenues accrued to the State exchequer
through issue of mining permits, auction of mines, yet revenues are also accrued under
the mining and related heads through other user agencies/departments, check posts and
enforcement activities of the departments. The principal departments managing the
Mineral and Non-Renewable Energy Resources and the treasuries furnish monthly
accounts of receipts to the Accountants General Offices which are compiled in annual
receipts of the State from Mineral and Non-Renewable Energy Resources - as depicted
through the block diagram below:

Deptt of Geology and User agencies/Deptt

mining/Petroleum/E&F

Check-posts
Treasury
Monthly accounts

District Offices Enforcement

Offices of AsG in States

Page 44

Thus, there is a well-defined system of reporting the receipts in the States. Slight
tweaking of the system to enable capturing the physical volume of Mineral & Non-

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Renewable Energy Resources besides the revenues in their reporting framework of

district offices/Directorate of Geology and Mining/Petroleum/Environment and Forests
would aid in constant capturing of the physical flows of Mineral and Non-Renewable
Energy Resources in the directorates as well as in AsG offices. These information can
form the basic database of annual physical flows of resources.
Secondly, introduction of a system of reporting the physical volumes of resources
procured/used by the user agencies/departments and volumes of resources on which
fines/penalties besides royalties/duties/fees are collected by check-posts/enforcement
wing to the principal administrative departments – would help installing a system of
cross verification of usage of resources. This has been discussed in greater details below.
Capturing other information on supply and use
The SEEA framework embeds a system of continuous verification of supply and use of
natural resources. A system of collection of information on use/sale/exports of resources
is felt necessary for effectively monitoring the flow and use of resources.
Mapping of supply and use essentially hinges upon continuous and more importantly
automated process of real-time dataflow into the system on Mineral and Non-Renewable
Energy Resources – as prioritized by respective States. It is only then it will be possible
to ensure 360-degree mapping of extractions vis-à-vis consumption and sale of resources
for assuring reliability of datasets generated by way of Asset Accounts.
There are instances of highly reliable systems of e-permit mechanisms in States
with real-time verifications at the check-posts, point of consumption to cross verify
the actual movements vis-à-vis those authorised on payment of due share of
royalties, taxes and duties to the State exchequer which can be adopted/adapted
by the States.
The following table/mechanism/block-diagram suggests the data-collection
methodology to monitor the supply and use.
Table 1
Suggestive methodology of data collection on use/sale/exports of Mineral & Non-
Renewable Energy Resources (may vary from State to State)
Name of Total volume Used in Consumed by Exported Total Variation
mineral allowed for construction major out of use/sale/ between col 6
extraction by user public/private State/ exports and col 2
during the year/ agencies@ sector Country$
Page 45

Volume actually entities#

extracted

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Notes :

@ - this may include Works Divisions (roads and buildings), PHE, Rural Development,
CPWD, NBCC, NHAI etc.

# - Major industries under Public Sector/Private Sector using Mineral and Non-
Renewable Energy Resources may be covered.
$ - Intra/inter-state and international check post’s data may be covered.
Some of the indicative areas recommended for the States to ponder upon to
increase vigilance over mining activities to optimize revenue streams by ensuring
automated systems of data gathering are suggested below.
➢ Installing an automated e-permit system with necessary bar-coding for
verification at the check-posts/railway yards/customs stations/material
acceptance points of industries etc.
➢ Automated systems could be installed for making available real time
information of permits in the check posts (both intra and inter-State/customs
check posts at international borders) so that the mining passes produced by the
transporters at the check-posts can be verified before allowing movement
➢ Systems need to be put in place to prevent transportation of minerals with
duplicate mining passes by making it mandatory to pre-register GPS enabled
carriage vehicles with the Mining Departments
➢ The unladen weight of the vehicles should be captured so that the mineral
carried could be easily ascertained by reducing the unladen weight and the
Gross vehicle weight slip obtained from the weigh-bridges and carried by the
vehicle
➢ Automated/manual systems need to be installed for regular flow of information
from the points of consumption/sale/inter-state or outside the country
movements to ensure end-to-end veracity of actual extraction data (Table 1
above and discussion under para 7.4 refers)
➢ Make it mandatory to produce electronically verifiable e-permits for
consumption, inter-state/international movement of minerals. Else, recovery
of full royalty/taxes/duties etc along with penalty as applicable may be strictly
Page 46

enforced

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

➢ Enhancing the quantum of penal measures to act as high deterrent on illegal

mining activities
➢ Enact stringent penal measures, wherever not available, on departmental
authorities/personnel/agencies including their authorised personnel for not
ensuring valid e-permits or royalty/penalty collections while allowing
transportation/ purchase/ consumption-similar to Income Tax Act.

The suggested framework – illustrative only

User agencies

Check-posts

Mandatorily pre-register all mineral carrying

vehicles – enabled with GPS tracking Enforcement
Directorates
Capture Capture Industries
supply use/sale

District Mining Offices GST network

Electronic/app-based Data processing centers to enable
departmental authorities, check posts, user agencies,
Customs Stations
custom stations to feed data electronically and
monthly/ daily basis – reconciliation enabled process

Thus, while the processing center capturing

data on supply would gather information on At the instance of the State NRA Cell,
minerals allowed by the authorities and Government of Andhra Pradesh has
validly extracted by miners/users; the modified the e-permit portal of Mines
processing center instituted to capture and Minerals to enable automated
capture of data for subsequent year’s
actual use/sale of minerals would gather
Asset Account
data from all sources on usage/sale within
State/exports/movement through check-
gates etc. The GST mechanism requires transporters to generate UA Bills before
initiating movement of goods. Mapping the data captured in the GST database is highly
Page 47

recommended. Electronic/app-based systems installed to capture data periodically,

daily/weekly/ monthly would enable continuous processing of data/information into the
systems. While ensuring optimum flow of receipts to State exchequer, a reconciliatory

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

mechanism would help raise flags on variations between both the data sets pointing
towards need for further investigation on mining activities not authorised by the
departments. The diagram is illustrative only and the States may consider including
other sources to further strengthen the system of cross verification in the revenue
interest of the State as well as ensuring scientific mining and sustainability of resources.

7.4 Way forward – summing up

Thus, the action plan for preparing the first Asset Accounts for the year 2020-21 would
be more reliant on data collection, compilation and validations firstly on physical flows
and then on ascertaining the stock subject to availability of time/resources. Secondly,
the NRA Cells in the States alongwith other related stakeholders would like to quickly
work on the designs, preferably electronic/app based models on input forms, for data
capturing – not only from the Departments administering the resources, but also the user
agencies, check-posts, enforcement wings, industries etc (as in Table 1 above and block
diagram in preceding paragraph) so as to enable installing e-system without human
interface before commencement of year 2022-23. This will assist in making the overall
process of data collection/compilation and validations easier from 2022 onwards - with
end-to-end system-based automated processing and capture of information for the
subsequent year’s Asset Accounts.

Successful implementation of Asset Accounts on Mineral & Non-Renewable Energy

Resources in the States would mean that India not only meets the first of the four-stage
implementation strategy prescribed by the SEEA - CF but will also get into the elite list of
countries where Asset Accounts on natural resources (importantly non-renewable
resources) are being generated.

Page 48

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Annexure – A
(Reference Para 4.2)

List of Consultative Committee members

Sl. Name of Name of the Officer Contact details
No. Office/Organization nominated
1. GASAB Secretariat Sh. R M Johri, [email protected]
Addl. Deputy CAG,
GASAB

Sh. S. N. Biswas, [email protected]

Sr. A.O./GASAB, NRA
2. Government Account Sh. Ravikiran A. Ubale [email protected]
Wing in CAG’s Office Director
(Govt. Accounts)
3. Commercial Wings Ms. Kavita Prasad [email protected]
in CAG’s Office DG/Comml.-I
4. International Centre Sh. Pushkar Kumar [email protected]
for Environment Audit Director 2772012(O)
and Sustainable (Training & Research) 9805501717(M)
Development (iCED), FAX - 2772011,2772030
Jaipur
5. Ministry of Statistics Sh. Siljo V K, 8860413898 (M)
and Programme DDG (SSD) [email protected]
Implementation
(MoSPI)
6. Ministry of Mines and Sh. Arputhaswamy S, [email protected]
IBM Director, Ministry of 8056111130
Mines 23073046
Dr. A H Ramteke, [email protected]
Joint Director (S), MMS 9868264198 (M)
Division, Chief Mineral
Economist, India
Bureau of Mines
D.W. Beck [email protected]
Supt. Mineral 7588746394 (M)
Economists
Page 49

7. Ministry of Ms. Anshu Singh, [email protected]

Environment, Forest DDG (Stats)

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Name of the Officer Contact details

No. Office/Organization nominated
and Climate Change
(MoEFCC)
8. Department of Land Sh. Niraj Kumar, Department of Land Resources,
Resources Deputy Secretary, R. No. 109, 1st Floor NBO Building, G-
Wing, Nirman Bhawan, New Delhi -
110011
Ph:23062698/9891756683
[email protected]
9. Ministry of Jal Shakti Shri Sunil Kumar, Central Water Commission,
Director (BP-1), 5th floor (S), Sewa Bhawan,
R.K. Puram, New Delhi-110066.
Telephone: 011-26100802
e-mail: [email protected]

10. Institute of Chartered CA. (Dr.) Sanjeev (M) 9811565606

Accountants of India Kumar Singhal, [email protected],
(ICAI) FCA, New Delhi [email protected]
11. Expert in Sh. Mukul Sanwal, [email protected]
Environmental IAS (Retd.), 1971
Accounting
Five State Governments (from East, West, North, South and North East) AsG
(Audit/A&E)
12. AG (Audit), Meghalaya Shri. Subbaiah, 2223189(O)
DAG (AMG-II) 9448707986
[email protected]
State Government, Sh. Shantanu Sharma, +91-7002861847
Meghalaya Joint Secretary, 9435813045
Govt. of Meghalaya [email protected]
Finance (Bud. Deptt.) [email protected]

13. AG (A&E), Jharkhand Sh. Bharat Chandra Email – NA

Behera, 2411043(O)
Deputy Accountant 9437426834 (M)
General FAX – 2411745
[email protected]
PAG (Audit), Sh. Sanjeev Kumar, [email protected]
Page 50

Jharkhand Sr. DAG 2410050 (O)

9724805514 (M)

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Name of the Officer Contact details

No. Office/Organization nominated
FAX - 2412517,2413701
State Government Awaited
Jharkhand
14. AG (A&E), Sh. R. S. Negi 9412989776 (M)
Uttarakhand Sr. Accounts officer [email protected]
PAG (Audit), Sh. Yogesh Agrawal, 9235772484 (M)
Uttarakhand DAG (AMG-II) [email protected]
Sh. Ravindra Kumar, 9410360321 (M)
Sr. Audit Officer [email protected]
(FINAT)
State Government, Sh. S L Pattrick, 8192802321
Uttarakhand Additional Director [email protected]
Mines and Geology
Department
15. AG (A&E), Gujarat Sh. Saji Thomas, 2441110 (O)
Sr. DAG 9898006047 (M)
[email protected]
AG (Audit-I), Gujarat Sh. Siva Subramanian, 9913344278 (M)
DAG/AMG-III [email protected]
AG (Audit-II), Gujarat Ms. Anita Singh, 9320929066 (M)
Sr. DAG [email protected]
Sh. P. B. Chougule 9426561173 (M)
Sr. A.O. [email protected]
State Government Sh. Roopwant singh 079-23254151
Gujarat Commissioner [email protected]
Geology & Mines,
Industries & Mines
Department
(Representative of
State Govt. for
Consultative
Committee of NRA
Cell)
Sh. A. D. Kanani, 9909939803 (M)
Chief Engineer 079-232-51667, 079-232-51668
(Central Gujarat) & [email protected],
Additional Secretary [email protected],
Page 51

Naramada, Water [email protected]

Resources, Water
Supply and Kalpasar

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Name of the Officer Contact details

No. Office/Organization nominated
Department,
Government of Gujarat

Sh. Nisarg Joshi 9978409686 (M)

Deputy Secretary [email protected]
Energy and
Petrochemical
Department,
Government of Gujarat
Sh. P.R. Joshi, 9879830900 (M)
Deputy Director (State 079-232-52882
Income) [email protected]
Directorate of [email protected]
Economic and
Statistics,
Government of Gujarat
Sh. N. Srivastva, 8980755055 (M)
Additional Pr. Chief 079-23252009
Conservator of Forest. [email protected]
Forests &
Environment
Department
Sh. D.R. Bhammar, 9978442540 (M)
Deputy Secretary 079-23251517
(Land) [email protected]
Revenue Department
Sh. J.I. Hindocha, 9427314323 (M)
Deputy Director 079-232-54411
(Treasury Control) [email protected]
Finance Department
Sh. M. R. Wala, 9727706383 (M)
Sr. Geologist [email protected]
Industries & Mines
Deptt.
16. AG (A&E), Karnataka Smt. Yashoda S., [email protected]
Sr. Dy. AG 22640220 (O), 22268964 (O)
9448569518 (M)
Smt. M. Girija Kumari, [email protected]
Page 52

Sr. Account Officer TM

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Name of the Officer Contact details

No. Office/Organization nominated
PAG (Audit)-I, Miss Monali Phadtare, [email protected]
Karnataka DAG (AMG-III) 22262417 (O),
9769506364 (M)
AG (Audit-II) Smt. Sunita Mary 080-22640396
Samson 9481773818 (M)
Sr.AO/Civil/AMG-II [email protected]
State Government, Sh. Chandrashekar 080-22033550
Karnataka Nayaka. L [email protected]
Deputy Secretary to
Government,
Finance Department
(B&R),
Shri S.C. Venugopal 9742966500 (M)
Director(Technical) 080-22254545, 22355217
Energy Department [email protected]
Shri Raj Kishore Singh 080-22032275/2174
Director General [email protected]
Forest Ecology and
Environment
Shri Basana Gouda, [email protected]
Joint Director
Planning, Programme,
Co-ordination and
statistics
Shri Kiran H Mausti 9980774689 (M)
Deputy Secretary to [email protected]
the Government
(KBJNL),
Water Resources
Shri B Guru Prasad [email protected]
Joint Director,
Statistics
Miner Irrigation
Department
Shri C V Raman [email protected]
Page 53

Joint Director (M&G

Dept.)
Commerce and
Industries

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Name of the Officer Contact details

No. Office/Organization nominated
Shri C Balram 9379293078 (M)
Under Secretary to
Government, Revenue

Page 54

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Annexure – B
(Reference Para 4.2)
Comments/Suggestion received on draft formats of Asset Accounts on Mineral & Non-Renewable
Energy Resources (NRA) as on 13.07.2021

Sl. Name of Office/ Comments/Suggestions Remarks

No. Organization
1. DG, Commercial, (i) The template requires extraction of (i) Agreed. Necessary
CAG of India resources to be shown separately for modifications included in the
Government, Private Sector and draft Asset Accounts.
Others. In this regard Government
may be bifurcated into Central and
State Government with further
bifurcation into CPSEs/ State PSUs,
Central and State Autonomous bodies,
Municipal and local authorities etc.
(ii) We need to define what the term (ii) Since incorporated.
Others include. For example, does it
include Public Private Partnerships?
(iii) We need to take into (iii) As per the action plan
consideration the fact that there are envisaged in the Concept
certain materials like atomic Paper, we are now on goal 1 –
materials which are exclusively under Asset Accounts on Mineral and
the domain of Central Government as Non-Renewable Energy
per the provisions of Mines and Resources for States. The
Minerals (Development & national Asset Accounts is
Regulations) Act 1957. As such, the planned in the next stage, i.e.
natural resources required for from 2022-23 onwards, please
production of such materials are
regulated by Central Government.
(iv) Extraction of natural (iv) This aspect is incorporated
resources is always bound by rules in the notes under Asset
and regulations in force. We need to Accounts, please.
look into the issues pending in courts
and violation of Central and State
Pollution Control Boards directives
regarding illegal extraction/
Page 55

extraction not as per norms

prescribed.
2. Ms. P. Bhanumati, (i) In respect of Methodology 2 of the (i) At the initial stage, collection
DDG(SSD), Concept paper prescribed for of data from the State on

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Office/ Comments/Suggestions Remarks

No. Organization
Ministry of compiling opening stocks as on April extraction of minerals was
Statistics and 1, 2019, this method uses production cumbersome and due to COVID
Programme figures to adjust the stock of reserves restrictions, it was thought of
Implementation as given in the IBM National Mineral collecting the production
(MoSPI) Inventory — Though the production figures from the IBM which was
figures could be used as a basis for readily available. More so as it
estimating the amount of ore was a pilot project. However,
extracted, it may not be appropriate to the actual Asset Accounts for
take just the production since the year required collection of
adjustments may need to be made for information on actual
the wastages during the mineral extraction from the States.
extraction process. It is suggested that This aspect has been
IBM be contacted for advice on the incorporated in the draft Asset
procedure to be adopted for Accounts now, please.
estimating the opening stock for each
year.
(ii) Table 9 of the Concept paper (ii) A separate note has been
intends to show the extraction of inserted to clarify this.
minerals by Government sector and
private sector entities and not really
the amount used by these sectors. This
may need to be clarified during
collection of information from other
States. Detected ‘illegal mining’ could
be considered for inclusion in private
sector.
(iii) In the recording of royalties, care (iii) In view of this foreseen
may need to be taken not to show the problem, an effort has been
royalties pertaining to an extraction made to link the revenues
undertaken in a previous year reported through the Finance
alongside the extraction during the Accounts to map the revenues
current period. Such differences may as well as the physical
occur due to the recording of extractions. Little bit of overlap
transaction in government accounts cannot be ruled out. However,
on cash basis rather than on accrual our endeavour is to capture the
Page 56

basis. If the intention is to provide an overall picture of extraction

analysis of the mismatch between vis-à-vis the stock and the
production and royalties in a State, closing balance of resources

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Office/ Comments/Suggestions Remarks

No. Organization
such divergences in recording two with an eye towards their
entries of the same table may not be sustainability and prevent
able lead to any valid conclusion. overuse.
(iv) For a better view of the learnings (iv) Recently, a national
from the pilot studies, it may be workshop on NRA was
worthwhile to have the agencies organized in the International
present the pilots, highlighting the Center for Environmental
challenges faced. This may be useful to Audit and Sustainable
understand whether the templates or Development (iCED), Jaipur
the instruction set need to be under CAG. We had
amended/revised before they are representative from the IBM,
circulated to other States for GASAB, NRSC and also
replication. Principal Accountant General,
Rajasthan who presented the
case study on preparation of
Asset Accounts on Mineral &
Non-Renewable Energy
resources. Recorded sessions
are enclosed for kind reference.
3. Sh. Mukul Sanwal, (i) Congratulations. The report
IAS (Retd.), 1971 (Concept Paper) will be important for
Expert in policymakers and for our
Environmental environmental credentials. The table
Accounting in Annexure A (page 8) captures the
items comprehensively.
(ii) Apart from use of coal for (ii) Agreed, please. This aspect
electricity, the other main uses are has now been included in the
steel, cement and construction draft Asset Accounts please. As
material (that is also the case world sand is part of resources
over). You have these in the table on managed by the Department of
page 8. The table, that construction Geology & Mines in the States
material is much more in volume than coupled with the fact that sand
fossil fuel and generates substantial is a product of erosion of
revenue. You could bring this out in stones/boulders which is finite
the conclusion. It links with in nature, this is included as a
Page 57

infrastructure development and part of the Asset Accounts on

urbanization. Mineral & Non-Renewable
Energy resources, please.

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Office/ Comments/Suggestions Remarks

No. Organization
(iii) I have one suggestion sand, which (iii) Agreed, please. The three
is mainly in the river beds, is pilot States have succeeded in
replenished each year during the collecting information from the
monsoon. Is this in the official data sources earmarked in the
you have from the departments? In Concept Paper which can be
this sense, sand will be a renewable replicated by other States,
resource, a situation that is unique to please.
us because of the heavy rains in a
short period during the monsoon.
Please look into this.
(iv) Regarding the methodology, the (iv) Aspect of cross verification
policy issue is availability of data and of information of Directorate of
appropriateness. Geology and Mining in the
Some element of rigour is certainly States with possible resource
needed for the major natural centers like the IBM and other
resources - coal, iron ore, raw material Ministries/agencies have been
for cement and construction/building incorporated in the draft Asset
material. Here royalties could be Accounts, now, with the aim to
supplemented in a box with data from highlight any case of variation
power plants, steel mills, cement in data sets pointing towards
plants and urban construction (that is, need for reconciliation.
from a different agency). Industry
federation data could also be used.
NITI may also have some data. This
will serve to flag a possible issue for
further refinement and review and
reconciliation of data kept by the
different agencies, which is also the
role of the CAG. So, use what is
available and do analysis to highlight
any issues for the future.
(v) The agencies who have conducted (v) We have issued specific
pilot studies, in addition to instructions to the field Offices
highlighting the challenges, could also to coordinate with the State
be requested to suggest specific Governments to suggest
Page 58

changes in the template and changes in the format. And

instructions, which would then be flexibility in the reporting
format has been embedded in

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Office/ Comments/Suggestions Remarks

No. Organization
reviewed in the Office of the CAG. This all correspondences with the
will make your task easier. States allowing them full
liberty to remodel the formats
as per their needs and
availability of data while
keeping the main framework
and information requirements
intact.
4. IBM, Nagpur and (i) The format of data collection Points noted, please.
Ministry of Mines, appears to be good for the first
GoI instance. There may be limitations on Successful completion of pilot
the compilation of data. studies in three States has
(ii) IBM is entrusted with the given space to optimism that
administration of mining law such as similar exercise could be
MCDR, 2017/ Mineral (Auction) replicated in all other States.
Rules, 2015/ Minerals (Other than
Atomic and Hydro-Carbons Energy
Minerals) Concession Rules, 2016, etc.
Therefore, the control of IBM is only
on mines and minerals covered under
MCDR.
(iii) For the mineral covered under
MCDR, information/data is received
through Monthly and Annual Returns.
The information available in those
returns can only be shared as and
when required. Information beyond
scope of monthly/ annual returns
cannot be compiled..
(iv) So far as statutory returns are a
concern, information related to the
environmental aspects is mostly
available in Annual Returns, and
sometimes such information is even
not furnished despite repeated
Page 59

reminders.
(v) The data on fuel minerals and
minor minerals are collected on a non-
statutory basis from the respective

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Office/ Comments/Suggestions Remarks

No. Organization
source agencies. Therefore, IBM
cannot compel any of the source
agencies for specific information not
provided by them.
(vi) For fuel mineral data is available
for production only. Data for values,
stock are not compiled and
maintained.
(vii) Minor mineral data is compiled
from the state government, where
consistency is not maintained. For
some of the states, the minor mineral
data has not been received for the last
20 years.
(viii) In view of the above, it is stated
that the format of data collection
appears to be good for the first
instance. There will be limitation on
the compilation of data as mentioned
above
5. Shri Santanu (i) Limestone can be classified as a (i) Flexibility is allowed to the
Sharma, JS Budget, minor mineral also depending on the States to modify the templates
Government of end usage of the extracted ore. This is as per their needs keeping the
Meghalaya
just to highlight this as you have overall framework intact.
already mentioned that States have
the flexibility to classify extraction as
per rules.
(ii) Can there be another column in the (ii) Since inserted, please.
extracted for segment meant for
exports. Meghalaya for example
exports to Bangladesh. This can be
relevant as it also earns FX for the
country.
(iii) I am not clear about the (iii) The aim of preparing the
sustainability part. Is there a Standard Asset Accounts to compile the
Page 60

that can be applied? For example, is database on stock and flows of

Coal mining sustainable if the present Mineral and Non-Renewable
reserves of coal will get over in 40 Energy Resources for better

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Office/ Comments/Suggestions Remarks

No. Organization
years let us say? Different States will disclosure and decision making
be mining at different rates so how is by the policy makers who has
this going to be classified and to take the final call on
reconciled? continuity or otherwise of
mining and related activities.
Compilation of data into an
Asset Accounts is a tool or aid
to evidence based decision
making.
6. AG (Audit),
Meghalaya

7. AG (A&E),
Jharkhand
Sh. Bharat Chandra
Behera,
Deputy Accountant
General
8. PAG (Audit),
Uttarakhand
9. PAG (Audit)-II,
Gujarat No further comment.
10. PAG (A&E), Gujarat
11. AG (A&E),
Karnataka
12. PAG (Audit)-I,
Karnataka
13. International
Centre for
Environment Audit
and Sustainable
Development
(iCED), Jaipur
Page 61

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Annexure – C

(Reference Para 4.2)

Minutes of meeting on virtual presentation on Natural Resource Accounting –

implementation of Asset Accounts on Mineral & Non-Renewable Energy Resources
in States for the NRA Cell constituted by GASAB

Background: As part of the implementation process envisaged in the Concept Paper on NRA
released by the GASAB Secretariat in July 2020, GASAB Section has developed tentative
templates for the Asset Accounts on Mineral & Non-Renewable Energy Resources for
implementation in the States. The templates, besides being successfully piloted in three
States (Goa, Meghalaya and Rajasthan) have also been vetted by the Consultative Committee
on NRA Cell set up by GASAB consisting of important stakeholders, State’s representatives
and eminent environmentalists. The templates are in final stage and are planned to be rolled
out in the States by September 2021 after necessary approvals for preparation of Asset
Accounts for the year 2020-21, targeted to be completed by March 2022.

In order to discuss the developments with the eminent members of the Consultative
Committee before finalisation of the templates of Asset Accounts for rolling out to the States
for implementation, a virtual meeting with the members was planned.

Date and time : 20 September 2021 at 11 AM.

Participants : Ms Parveen Mehta, Deputy CAG & Chairperson, GASAB chaired the meeting.
Shri Mukul Sanwal, IAS (Retd) eminent environmentalist was present. A list of other dignitaries
in the Ministries of Government of India, State Governments and Accountants General Offices
of NRA Cell besides Officers of GASAB is enclosed.

Mode: Virtually through MS Teams

Proceedings : At the outset, Additional Deputy CAG, GASAB, welcomed Shri Mukul Sanwal and
all dignitaries and eminent members of NRA Cell involved in this prestigious endeavour of
GASAB on implementation of NRA across the country. The contribution of accounting of
natural resources towards long term economic performances and India’s obligations on
implementing resource accounting as part of the sustainable development goals were
highlighted. He brought out the action plans envisaged in the Concept paper which, inter-
alia, envisaged short, medium and long term goals starting from 2020 and converging with
Page 62

the target date of SDGs, i.e. 2030 in consonance with the four stage implementation strategy
suggested by the System of Economic Environmental Accounting – Central Framework

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

(SEEA – CF); of which, the first such goal is preparation of Asset Accounts on Mineral & Non-
Renewable Energy Resources, more importantly the non-renewable resources because of
its finiteness in nature, to commence from the States and gradually moving towards the
national level.

The Addl Dy CAG set the tone of the meeting as a platform for conveying to the members of
NRA Cell regarding the status of implementation of action plans as on date and way forward
as part of GASAB’s zeal to implement NRA across the country.

To take the meeting further, he requested the Deputy CAG (Government Accounts) &
Chairperson, GASAB (hereinafter referred as CP, GASAB) to kindly inaugurate the meeting
and provide the key-note address.

In her keynote address, CP GASAB, while conveying sincere gratitude to the luminaries of
the Cell especially Shri Mukul Sanwal for sparing time for attending the meeting, highlighted
the crucial role played by the natural resources in economic development of a country and
their inbuilt value of inter-generational equity and sustenance. Important milestones on
natural resource accounting and economic environmental accounting like the UN conference
on Human Environment in 1970, the Brundtland Commission, the Earth Summit at Rio de
Janeiro in 1992, international standards for the compilation of national accounts in 1993
revised in 2009, deep inter-linkages of economic environmental accounting with the SDGs,
the SEEA – CF in 2012 – which is the latest internationally accepted and adopted framework
for resource accounting were touched upon.

CP, GASAB informed the august house about the progresses made towards implementing
NRA in India by the concerned stakeholders and ministries and stated that despite best
efforts, a system of collation of a periodic database in the shape of an Asset Accounts on
available natural resources linked with the inter-related factors like revenues and costs
involved in exploitation of such resources, their sustainability for the future generations –
which is the first stage of implementation of NRA as suggested by the SEEA - CF, was still to
be achieved.

In the above backdrop, CP GASAB underscored GASAB’s initiatives in hand holding the
country and the States to implement NRA across the country through the release of the
Concept Paper on NRA, drawing up of tentative templates for capturing data related to
Page 63

selected natural resources especially Mineral and Non-Renewable Energy Resources to

commence with from the States. The CP GASAB also mentioned that this meeting was
planned as a platform for conveying the works done, successes in pilot studies, way forward

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

and the templates of Asset Accounts on Mineral & Non-Renewable Energy Resources being
readied for implementation in the States and to seek the insights of the members before
finalisation of the templates.

CP, GASAB requested the members to continue to attach due priority to this project of
national importance and keep up the wholehearted support which is imperative for its
successful implementation.

After the key-note address, a powerpoint presentation on NRA was made by SAO, GASAB
highlighting the concept and importance of NRA; international developments vis-à-vis those
in India, implementation strategy suggested by SEEA framework and those adopted/works
done by GASAB and successes thereagainst; draft templates of Asset Accounts on Mineral
and Non-Renewable Energy Resources and the key takeaways; results of pilot studies on
implementation of Asset Accounts on Mineral & Non-Renewable Energy Resources and
proposed way forward.

After the presentation, the following were discussed.

Commissioner of Geology and Mining, Gujarat pointed out that the list of minerals may
not be pre-fixed and requested for allowing flexibility to the States to select the list of
minerals to be included in the Asset Accounts.

While appreciating the input, it was informed that the core framework of Concept Paper has
been designed to allow flexibility to the States to modify the formats as per their need subject
to overall framework to enable State-wise compilations and also to prioritise the mineral
resource to be included therein.

Indian Bureau of Mines highlighted that in many States the minor minerals are auctioned
and thereafter the extractions are not monitored properly. Taking instance of some States,
the Officer pointed out that information on minor minerals is not forthcoming for decades
which is a concern. As regards the administrative departments, it was mentioned that in
addition to the Geology and Mining Departments, Environment and Forest Department was
also involved in many States in managing mineral resources. Lastly, it was informed that the
State of Andhra Pradesh has developed system of collection of data on Mineral and Non-
Renewable Energy Resources which is found to be effective.

While the technical inputs are accepted gratefully, preparation of Asset Accounts on Mineral
Page 64

and Non-Renewable Energy Resources in States, year-wise, has the potential of addressing
most of the above concerns.

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Ministry of Statistics and Programme Implementation pointed out the requirement of

measuring the production loss as in some cases it is more than 70 per cent. It was also
informed that data under illegal mining can be listed under Private extractions only and not
under Government sector.

The input on production loss is gratefully acknowledged, and necessary amends has been
carried out in the formats. As regards illegal mining, the table contains only a row on
collection of information without classifying them under any specific sector with the idea of
only bringing the known information in the main framework to add to the total extractions.

After the discussions, Shri Mukul Sanwal in his expert speech lauded the organisation of CAG
of India and GASAB for the endeavour which, he said, will not only help the country in
achieving the international obligations but will also add immense value to evidence-based
decision-making process being stressed upon by the hon’ble Prime Minister of India. The
idea of commencing the implementation process from the States was also appreciated as the
key data lies there, he added. The icon cautioned the house that this was an evolving process,
and the country will learn as we commence and progress with implementing this highly
important project for the country and solutions will continuously emerge as we go on. He
added that the formats of Asset Accounts designed by the CAG/GASAB establishment as the
first step is extremely well thought of and will add value to good governance by enabling
new policy issues, new comparisons to emerge.

CP, GASAB noted the expert views of the iconic dignitary as extremely encouraging,
reassuring, and heartening.

Before concluding, CP GASAB once again thanked the dignitaries for their involvement and
enthusiasm and attending the meeting to make it a success and expressed confidence that
the members of NRA Cell would continue to support GASAB in implementing NRA across the
country

At last, CP GASAB affirmed that successful implementation of Asset Accounts on Mineral &
Non-Renewable Energy Resources in the States would mean that India not only meets the
first of the four-stage implementation strategy prescribed by the SEEA - CF but will also get
into the elite list of countries where Asset Accounts on natural resources (importantly non-
renewable resources) are being generated.
Page 65

The meeting ended with vote of thanks to the Chair.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Officers attending the Virtual Presentation on NRA for the members of

Consultative Committee of NRA Cell (Date 20.9.2021)
Sl. Name of Office/Organization Name of Officer
No.
1. GASAB Secretariat Ms Parveen Mehta,
Deputy CAG & Chairperson, GASAB
Sh. R M Johri,
Addl. Deputy CAG, GASAB
Sh. S. N. Biswas, Sr. AO, GASAB/NRA
2. Sh. Mukul Sanwal, IAS (Retd.)- retired bureaucrat and eminent environmentalist
3. Ministry of Statistics and Sh. Siljo V K, DDG (SSD)
Programme Implementation
(MoSPI)
4. Ministry of Environment, Forest Ms Anshu Singh, DDG (Stats)
and Climate Change
5. Ministry of Mines and Indian Sh. Arputhaswamy S, Director, Ministry of Mines
Bureau of Mines Dr. A H Ramteke, Joint Director (S), MMS Division,
Chief Mineral Economist, India Bureau of Mines
Sh. D.W. Beck, Supt. Mineral Economists
6. International Centre for Sh. Pushkar Kumar, Director, (Training &
Environment Audit and Research)
Sustainable Development
(iCED), Jaipur
7. Institute of Chartered CA. (Dr.) Sanjeev Kumar Singhal,
Accountants of India FCA, New Delhi
8. State Government Gujarat Sh. Roopwant singh, Commissioner Geology &
Mines, Industries & Mines Department

Mr A V Champaneri
DD, Statistic

9. AG (A&E), Gujarat Sh. Saji Thomas,

Sr. DAG
Ms. Annie Jeejo, Sr.AO
10. AG (Audit-II), Gujarat Sh. Aditya Pant, DAG
Sh. P. B. Chougule, Sr. AO
Page 66

11. AG (A&E), Jharkhand Sh. Bharat Chandra Behera, DAG

12. State Government Karnataka Shri C V Raman, JD (M&G Dept.)

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Sl. Name of Office/Organization Name of Officer

No.
Commerce and Industries
Technical Director,
Karnataka Power corporation ltd. (KPCL)
Joint Director SIP, Directorate of Economics and
Statistics
13. AG (A&E), Karnataka Sh. R Naresh, Pr. AG

Smt. Yashoda S., Sr. Dy. AG

Smt. M. Girija Kumari, Sr. AO, TM
14. Pr. AG (Audit), Karnataka Ms. Kavita, Sr. AO
15. AG (Audit), Meghalaya Shri. Subbaiah,
DAG (AMG-II)
Shri. S. Nangbah,
Sr. AO
State Government, Meghalaya Sh. B. G. Momin,
Research Officer,
O/o the Director of Economic & Statistics
(Planning)
16. PAG (Audit), Uttarakhand Sh. Yogesh Agrawal,
DAG (AMG-II)
Sh. Ravindra Kumar,
Sr. Audit Officer (FINAT)
17. AG (A&E), Uttarakhand Shri R S Negi, Sr. AO
18. State Government, Uttarakhand Representatives of State Government

Page 67

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Annexure – D

(Reference Para 4.3)

Minutes of meeting on virtual presentation on Natural Resource Accounting for the Chief
Secretaries, other Officers and Accountants General of States

Background: As part of the implementation process envisaged in the Concept Paper on NRA
released by the GASAB Secretariat in July 2020, GASAB Section has developed tentative
templates for the Asset Accounts on Mineral & Non-Renewable Energy Resources for
implementation in the States. The templates, besides being successfully piloted in three
States (Goa, Meghalaya and Rajasthan) have been vetted by a Consultative Committee set up
by GASAB consisting of important stakeholders and eminent environmentalists. The
templates are in final stage and are planned to be rolled out in the States by September 2021
after necessary approvals for preparation of Asset Accounts for the year 2020-21, targeted
to be completed by March 2022.

In order to discuss the matter with the highest echelons in the State Government to ensure
smooth co-ordination between GASAB headquarters, the field Offices of the CAG and the
State Governments in steering the implementation process, virtual presentation on NRA was
made to the Chief Secretaries and other State Government Officers besides the Accountants
General in the States. Details of meetings, participating States and key decisions are
mentioned in the table below.

Date Participating States Discussions and decisions

31-8-2021 Goa, Haryana, Mizoram, Punjab, The Additional Chief Secretary, Mines,
Rajasthan and Odisha Government of Haryana while appreciating the
presentation made assured the CP, GASAB of
completing the preparation of Asset Accounts on
Mineral & Non-Renewable Energy Resources
within 90 days. CP, GASAB hailed the assurance
and commitment.
Additional Secretary, Finance, Government of
Odisha also congratulated GASAB on the
presentation and requested for a copy of the
presentation and assured that with the
implementation of IFMS in Odisha, the State will
also endeavour to complete the preparation of
the Asset Accounts within the targeted timeline.
Page 68

Commissioner and Secretary, Commerce &

Industries, Government of Mizoram
commended GASAB for the initiative and

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Date Participating States Discussions and decisions

assured that the State would take necessary
steps towards preparing the Asset Accounts. CP,
GASAB assured the State Government of all
support from GASAB through the Office of the
AG, Mizoram.
3-9-2021 Arunachal Pradesh, Himachal Arunachal Pradesh while hailing the idea of
Pradesh, Meghalaya, Sikkim and NRA and GASAB’s work towards its
Uttarakhand implementation assured that the State would
provide all support and attempt to prepare the
Asset Accounts. The State also requested for
State specific workshops for capacity building
and guidance to which CP, GASAB agreed.
Himachal Pradesh: Economic Advisor speaking
on behalf of Himachal Pradesh Government
appreciated GASAB’s initiative in implementing
NRA and requested for a copy of the PPT. The
Officer highlighted the need for scaling up the
preparing forest Asset Accounts in the lines of
Forest Resource Assessment of one district
carried out in 2013-14 in the State. CP, GASAB
requested for a copy of the report to which the
EA agreed. The Finance Department of HP
requested for State specific workshops in
Shimla.
Meghalaya : The Chief Secretary, Meghalaya
while complimenting GASAB for this huge work
and requesting for a copy of the PPT highlighted
that there were data gaps in regular flow of
information for the compilation of Asset
Accounts and the State was working to
overcome it to make the system robust by March
2022. It was also suggested that in view of the
immense importance of forests, forestry sector
should be prioritised after completion of the
works related to Mineral and Non-Renewable
Energy Resources. The Officer also requested
for holding State specific workshops for
Meghalaya, which was agreed to by CP, GASAB.
He assured GASAB of all support of the State
Page 69

Government of Meghalaya in implementing NRA

in the State.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Date Participating States Discussions and decisions

Uttarakhand: Representative of Uttarakhand
Government highlighted the importance of
minor minerals in the economy of the State
Government and added that more thrust be
given to these minerals while preparing the
Asset Accounts in the State.
7-9-2021 Andhra Pradesh, Bihar, Andhra Pradesh Accountant’s General Office
Chhattisgarh, Gujarat, informed that the preparation of Asset Accounts
Karnataka, Madhya Pradesh, was underway and the opening balance is under
Nagaland, Tripura and Uttar
finalisation in consultation with the Department.
Pradesh.
Bihar State Government while highlighting the
requirement of a framework on accounting
principles for natural resources requested for
holding State specific workshops which was
agreed to by the senior management of GASAB.
Gujarat: The State Government informed that
they are in process of collecting data for
compilation of the Asset Accounts.
Karnataka Accountant’s General Office: Asset
Accounts on major minerals under finalisation
with the IBM data used for ascertaining the
opening stock. As regards the minor minerals,
the state mentioned that since the IBM database
do not provide information on minor minerals,
OB was being ascertained with the help of the
concerned Department(s).
Madhya Pradesh State Government while
assuring of full support informed that the
Geology & Mining Department maintains
electronic data which would smoothen
compilation of Asset Accounts. The State
Government also confirmed that they would co-
ordinate with the Accountant’s General Office
and follow up preparation of Asset Accounts.
Nagaland State Government requested for a
copy of the presentation to understand the
issues involved and work out the way forward.
Page 70

Addl Dy CAG assured that a copy of the

presentation would made available to the State
Government.

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Date Participating States Discussions and decisions

Uttar Pradesh State Government desired to
know about nominations for the NRA Cell.
Senior management of GASAB assured the State
Government of all help and informed that the
Offices of Accountants General will co-ordinate
with the State Government to guide them on the
matter.

7-9-2021 Maharashtra The Addl Chief Secretary, Industries while

appreciating the presentation stated that it was
a noble initiative of GASAB and the CAG. The
total area of the state vis-à-vis mineral bearing
districts and also the details of major minerals in
the State were discussed. It was also assured
that Maharashtra would definitely be a part of
the endeavour and the Department would co-
ordinate with the Accountants General Offices
through the Director of Mining for more
understanding, clarifications and detailed
guidelines for the study. The Addl CS requested
GASAB for sharing a copy of the presentation
which was agreed to by Addl Dy CAG.
The Principal Secretary, Finance also assured
full co-operation and requested for conducting
State specific workshops to sensitise the diverse
stakeholders which was agreed to by Addl Dy
CAG.
Principal Accountant General (A&E) – I, Mumbai
stated that NRA was a much-needed initiative
and given the flexibility, the Asset Accounts
could be possible to be completed within the
targeted timeline of March 2022. Pr. AG also
stressed upon state specific workshops as a good
starting point.
Accountant General – II, Nagpur congratulated
GASAB for this initiative and mentioned that the
Office has close interactions with the State
Government and assured that the Office would
deploy dedicated teams to work with the State
Page 71

Government to bring up the Asset Accounts on

Mineral & Non-Renewable Energy Resources in
the State.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Date Participating States Discussions and decisions

10-9-2021 Assam, Jharkhand, Manipur, State Government of Assam informed that the
Kerala and West Bengal. NRA Cell has been notified in the State and they
are planning to hold the first meeting of the Cell,
soon. The State Government requested for
holding State Specific Workshops. Pr.
Accountant General, Assam informed that a
presentation has been made on NRA to the State
Government and more such meetings were in
the anvil. Addl Dy CAG assured the State
Government and the PAG of all support from
GASAB in holding State specific workshop.
Jharkhand State Government while
appreciating the presentation on NRA assured of
forming the NRA Cell at the earliest. The
Principal Accountant General informed that
there were positive vibes from the State
Government on preparation of Asset Accounts
on Mineral & Non-Renewable Energy Resources
and the NRA Cell will be notified very soon.
State Government of Manipur while
appreciating the initiative of GASAB expressed
confidence that the Asset Accounts, once
prepared, will be immensely helpful for
showcasing the State’s value to the investors at
large to attract investments towards the State.
The Principal Accountant General informed that
the State Government has issued a formal order
on constitution of NRA Cell. He also echoed the
sentiments of the State Government that the
Asset Accounts would bring out a vital and
useful database. State Specific workshop to train
the human resources was insisted upon. Addl Dy
CAG while appreciating State Government and
Pr. AG’s enthusiasm assured of all support in
holding the State specific Workshop on NRA.
State Government of Kerala exhorted that the
preparation of Asset Accounts will be very
important for the State of Kerala as though the
State did not possess much major minerals, yet,
Page 72

it has strategic rare earth which needs to be

monitored closely. The Officer also highlighted
that preparation of Asset Accounts will yield

An initiative of Government Accounting Standards Advisory Board

 Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Date Participating States Discussions and decisions

multiple benefits as it would enable the State to
monitor commercial exploitation as well as
prevent smuggling of the rare minerals. The
State also assured that NRA Cell will be notified
very soon. Accountant General agreed with the
State Government regarding the need for Asset
Accounts in keeping tab on exploitation of rare
mineral extractions and formation of NRA Cell.
Finance Department of West Bengal State
Government informed that the matter is under
consultation with the Industries and the
Accountants General Offices. The State was
optimistic of going ahead in preparing the Asset
Accounts on Mineral & Non-Renewable Energy
Resources. The Principal Accountants General
were unequivocal about the co-operation of the
State Government and assured that both, the
AGs Offices and the State were on the same page
and the State would get all the support of the
State Accountant General Offices in building up
the Asset Accounts. The State also assured of
completing the work within the targeted
timeline.

20-9-2021 Jammu & Kashmir The State Government requested for State
specific workshop on NRA implementation and
also a copy of the tentative templates in which
data has to be captured.
The Pr. Accountant General (Audit) while
appreciating the presentation as comprehensive
assured the State Government of all co-
operation and assured that both the State
Government and the AsG Offices would attach
due importance to the project and all efforts
would be made to complete it within the
timeline.

28-9-2021 Tamil Nadu The State Government while thanking GASAB for
holding the virtual presentation informed that
they would follow the templates prescribed by
Page 73

GASAB and presently they are actively working

on preparing the Asset Account on Mineral &
Energy Resources.

An initiative of Government Accounting Standards Advisory Board

Templates of Asset Accounts on Mineral & Non-Renewable Energy Resources in States

Date Participating States Discussions and decisions

The Officer added that such a framework will be
immensely helpful for the State not only for
monitoring the extractions but also to ascertain
whether adequate revenues are being accrued to
the State exchequer from mining activities being
carried out. He lauded the cross-verification
mechanism which is embedded into the system.
The Accountant General (A&E) informed that
the NRA Cell is fully functional in the State of
which the first meeting has already been held
while the second meeting was in the offing. The
Office also mentioned that they have received
data from the Mining and Energy Departments
which are being examined for posting in the
templates of Asset Accounts.
The Officer also stated that some minerals are
under the administration of the Public Works
Department which needs to be covered as well.
The State Government requested for organising
State specific workshop, which was agreed to by
Addl Dy CAG, GASAB.

Page 74

An initiative of Government Accounting Standards Advisory Board