The Business Bytes
THEBUSINESSBYTES BUREAU
NEW DELHI, JUNE 23, 2025
In a sweeping overview of the mining sector’s transformation over the past decade, Union Minister for Coal and Mines, G Kishan Reddy, on Monday underscored the landmark reforms that have redefined India’s mineral landscape — from transparent auctions and investor-friendly policies to an intensified Centre-State collaboration and strategic global outreach.
Highlighting the auction of India’s first-ever potash block last month as a pivotal moment in reducing import dependency for fertilizers and strengthening national food security, the Minister affirmed that this was just the beginning of a broader vision to unlock the full potential of India’s vast and underutilized mineral wealth. “Minerals touch every nerve of a progressing nation,” he remarked, stressing the government’s commitment to holistic and transformative policy action.
Since the inception of the auction regime in 2015, over 500 mineral blocks have been awarded, with a record 119 blocks auctioned just in the past year. This auction-based approach replaced the archaic allocation system, infusing the sector with transparency and competitiveness. Key to this shift were sweeping amendments to the Mines and Minerals Development and Regulation Act (MMDRA), which laid a new foundation for a globally competitive mining environment.
The reforms, however, extended far beyond policy tweaks. By establishing uniform 50-year leases, eliminating procedural renewal hurdles, enabling seamless transfer of statutory clearances, and introducing a pioneering exploration licence regime, the government has not only empowered large players but also carved a growth path for MSMEs and start-ups in the sector. These changes have replaced skepticism with trust, and red tape with a red carpet for private enterprise.
India’s National Critical Mineral Mission (NCMM) marks a major strategic leap. With a growing global demand for resources like lithium, cobalt, nickel, and rare earth elements — essential for high-tech, energy, and defence applications — the country is now positioning itself as a formidable player in the global resource race. The creation of a thriving circular economy around these critical minerals, supported by domestic exploration and international acquisitions, is central to the vision of Viksit Bharat.
Parallel to policy evolution has been the unprecedented push for digitisation and data democratisation. From the faceless return filings and the Mining Tenement System to easy access to over 12,000 geological reports on the National Geoscience Data Repository, and the high-impact work of the National Mineral Exploration Trust, a new level of predictability and investor confidence has taken root in Indian mining.
India’s offshore mineral mining foray and the international expansion of Khanij Bidesh India Ltd. (KABIL), including lithium mine acquisitions in Argentina, are further augmenting strategic self-reliance and global integration. These efforts are anchored in strong collaboration with the private sector, which the Minister identified as an equal and vital partner in the country’s mining resurgence.
A defining hallmark of the last 11 years has also been the deepening of cooperative federalism in the sector. With mineral auctions now generating ₹4 lakh crore in premiums and royalties for States, and platforms like the State Mining Index, State Mineral Exploration Trusts, and high-level Ministerial conclaves fostering constant engagement, Centre-State synergies have never been stronger. The District Mineral Foundation (DMF), a visionary initiative by Prime Minister Narendra Modi, has further empowered local development, with its success resting on proactive State implementation.
The Union Ministry of Mines is also working on a mission mode to cut delays from lease grant to mine operationalisation, offering continuous support and guidance to industry stakeholders. At the same time, focus is being placed on building a robust local R&D ecosystem, with Centres of Excellence for critical minerals and recycling, and for the first time in modern Indian mining history, direct funding of start-ups to boost innovation in exploration and mineral processing.
As India emerges as the world’s fourth largest economy and aspires to reach the third spot, a modern, sustainable, and innovation-driven mining sector is poised to become the backbone of future industries. The transformation underway is not just about resource extraction—it’s about laying the foundation of a self-reliant, prosperous, and globally competitive India.
