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This paper brings out the issues of institutional failures and loss of valuable national resources at the cost environment and public health. Despite having several regulations, the illegal mining activities are rampant in many states of India under the influence of dishonest politicians, officials, and mining mafias, resulting over-exploitation of natural resources may affect public health, environment and future requirements of next generation. Moreover, illegal mining and overexploitation not only make adverse impacts on ecological balance, environment, biodiversity, water sources etc. but also influence the livelihood of the tribal people, living in backward regions and mining areas. Institutions usually play very significant role to rationalize human needs and reduce uncertainties in the society by establishing a stable structure to human interaction. However, now a days, institutions fails to carry out their duties and responsibilities. North argued that institutional change is a complicated process because the changes at the margin can be a consequence of changes in rules, in informal constraints, and in kinds and effectiveness of enforcement. Institutions are a guide to human interaction and determine the opportunities in the society. If an institution deviates from its principle, role, and duties, it generally fails to protect public resources. India has been a rich natural resource country and so, most of the natural resource constraints countries are keeping their eyes on the India’s natural resources at cost of local’s health, and environment. In context of India, minerals, forests and tribals are concentrated in the same geographical locations. So, any mining activity always disturbs ecology, biodiversity and people who live around. If mining activities are illegal, severity of impact has been much more. The recent illegal mining activities in iron and manganese ores in India made huge losses to the public exchequers in billions of dollars. Illegal miners plundered natural wealth at the cost of disturbing ecology, environment, and displacing poor and their livelihoods. It could not have happened without a strong nexus between illegal miners, and politicians and bureaucrats. As global demand for minerals increased, the prices rose sharply at international markets, particularly in China. As it happened, behaviour of mining mafias in India have changed spontaneously and entered into illegal mining activity. Natural resource depletion can destabilize livelihoods, negatively affecting ecosystems, and undermine peace and development. Exploitation of natural resources is a key factor in economic growth and development, and also one that can have serious negative environmental and socioeconomic impacts. The local mining mafia stretched their empire for private gain at the cost of public resources and reaped the real benefits in collusions with dishonest politicians and public officials, violating most of the environmental and biodiversity norms of natural resource conservation. Even, on exposing such kind of illegal activities in mining areas, the political leadership is engaged to cover

Challenges of natural resources management in India: Is it institutional Failure?