Most of the LWE affected areas are rich in mineral resources which are vital for the Indian economy.
It may be noted that of the total power generation in the country, 75% comes from thermal based coal-fired power plants and five of the LWE affected states provide 85% of country’s coal.
Apart from coal, the region is also important due to ample availability of other critical resources like copper, nickel, bauxite, manganese, iron, etc.
But, presence of LWE in the region adversely impacts commercial viability of any major investments in the mining sector. Naxals either obstruct inflow of developmental investments in the region or try to extort money from the companies.
