Centre Introduces Stage-Wise Timelines to Speed Up Operationalisation of Mining Blocks
SDG 9: Industry, Innovation & Infrastructure | SDG 12: Responsible Consumption & Production
Institution: Ministry of Mines
The Ministry of Mines has amended the Mineral (Auction) Rules, 2015 to ensure that mining blocks allocated through auction move quickly from paper to production. The change introduces clear, stage-wise timelines that mining companies must follow between receiving a Letter of Intent (LoI) and starting operations.
Under the new rules, a company must now complete major steps, such as getting its mining plan approved, securing environmental clearance, and signing the lease, within specific time limits. For mining leases, all stages together must finish within three years, and for composite licences (which include an exploration stage), the full process should conclude within six years.
If these deadlines are missed, companies will face financial penalties, but those who start production early will receive incentives, such as reduced auction payments. The ministry said the goal is to stop speculative bidding and make sure mineral resources are put to productive use faster.
This reform is designed to make Indiaβs mining system more efficient, transparent, and business-ready. It links faster clearances to real production, encouraging responsible mining and industrial growth while reducing delays that lock valuable mineral resources for years.
What are ML and CL? β
ML (Mining Lease) β The final permission that allows a company to mine and sell minerals from a block where resources have already been explored and confirmed. Managed under the MMDR Act (1957).
CL (Composite Licence) β A two-stage licence that lets a company first explore an area (to prove mineral reserves) and then automatically get a mining lease once deposits are confirmed.
Relevant Question for Policy Stakeholders:
How can state governments and the Centre work together to monitor these timelines effectively and ensure that quicker processes still uphold environmental and social safeguards?
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