President Pranab Mukherjee has said the mining sector in the country is facing serious challenges like increased mechanization, emphasis on protection of environment and stringent social demand on safety at workplaces.

Mr Mukherjee was speaking at a function in New Delhi on Wednesday after giving away national safety awards for 2008, 2009 and 2010 to 102 people in the mining sector.

The President said the mining industry occupies an important position in the national economy by not only employing over ten lakh persons but also producing basic raw materials for many industries.

Stating that the last millennium had witnessed some of the greatest changes like industrial revolution, Mr Mukherjee said this is a time of introspection.

The President said a developing economy needs increased availability of power to sustain a higher growth rate.

He said a GDP growth rate of 9 per cent per year has been envisaged over the 12th plan period of 2012-17. He said this would necessitate a growth in the total energy supply by around 6.5 per cent per year.

Referring to the huge coal resources of the country, Mr Mukherjee said coal should occupy a predominant position in the energy supply sources.

He said to make increased dependence on coal a sustainable phenomenon, the country has to move towards cleaner technologies so that environment is not unduly stretched.

The Labour and employment minister Mallikarjun Kharge who also addressed the session said that his ministry is implementing in a comprehensive manner a national policy on mines safety.