India Accelerates Natural Capital Accounting: MoSPI Unveils Methodology for Valuing Strategic Mineral Assets

India Accelerates Natural Capital Accounting: MoSPI Unveils Methodology for Valuing Strategic Mineral Assets​

The Ministry of Statistics and Programme Implementation (MoSPI) has released a critical Discussion Paper titled "Methodological Approaches for Compilation of Monetary Asset Accounts of Coal in India." This initiative represents a major step towards embedding sustainable resource valuation into India's national statistical framework, aligning with the globally endorsed System of Environmental-Economic Accounting (SEEA) Central Framework.

The paper aims to move beyond physical accounting. Building on existing work through EnviStats India and Energy Statistics India, MoSPI is now initiating experimental monetary valuation for mineral and energy resources. This effort provides a quantifiable measure of the economic value embodied in India’s extensive natural resource endowment.

Why Monetary Asset Valuation Matters for National Policy​

The accurate monetary valuation of environmental assets offers crucial insights into India's resource security. It allows policymakers to assess depletion costs and support the estimation of future government revenues stemming from resource extraction.

This process is directly relevant to the mandate of the National Mineral Policy, 2019, which stresses the necessity of sustainable mining practices. By quantifying these resources, India enhances its capacity for comparative analysis across various environmental assets, strengthening data-driven decision-making.

Methodological Approaches Reviewed by MoSPI​

The Discussion Paper provides a detailed conceptual framework for the monetary valuation of non-renewable mineral and energy resources as prescribed by the SEEA Central Framework. The study systematically reviewed three major international methodologies: the OECD (2025) Compilation Guide, the World Bank’s Changing Wealth of Nations (CWON, 2024), and a methodology from the Philippines (2024).

After examining conceptual foundations, data requirements, and potential sources within the Indian context, the paper recommends the OECD (2025) methodology. This selection is based on its conceptual rigor and feasibility with India’s existing data infrastructure, particularly the National Accounts Statistics (NAS) compiled by MoSPI. The adopted approach applies the Net Present Value (NPV) method to future resource rents, utilizing the Residual Value Method.

Coal: A Strategic Resource in Indian Economy​

Coal has been selected as a key illustrative case due to its strategic importance to India’s economy. As the nation's most abundant domestic energy source, coal is foundational to electricity generation and fuels core industries such as steel, cement, and chemicals.

The resource's centrality was underscored by record production figures in 2024-25. Production reached 1,047.523 million tonnes of raw coal and 45.133 million tonnes of lignite. This output highlights the immense role of these resources in ensuring energy security and supporting the Atmanirbhar Bharat vision.

Future Outlook and Call for Expert Feedback​

The release of this Discussion Paper serves as an open invitation to experts, researchers, government agencies, and international organizations. Submitting feedback is vital for the finalization of a standardized methodology for monetary valuation within India's national accounts framework.

Accurate and transparent resource valuation will place India at the forefront of natural capital accounting among emerging economies. MoSPI seeks contributions from stakeholders to ensure that these mineral resources are correctly valued as foundational inputs for sustainable development planning.