Reforms make India’s mining sector global player

New Delhi

India’s mining sector has become globally competitive, thanks to major reforms over the past decade, according to Minister of Coal & Mines G. Kishan Reddy. In an article released Monday, he highlighted the steps taken to improve transparency, efficiency, and private participation in mining.

Reddy said outdated policies were replaced, making space for private companies. Since the start of the auction system, over 500 mineral blocks have been auctioned — 119 in the past year alone. Key reforms to the Mines and Minerals Development and Regulation Act (MMDRA) from 2015 to 2023 created a solid base for growth.

He noted India recently auctioned its first potash block to boost local fertiliser production and reduce costly imports. The sector now offers 50-year leases, smoother permit transfers, and a new exploration licence to help small and medium businesses and start-ups.

To increase investor trust, the government set up tools like the National Geoscience Data Repository, drone mapping, faceless return filing, and the Mining Tenement System. The National Mineral Exploration Trust also helps fund exploration.

The launch of the National Critical Mineral Mission aims to make India a key player in vital resources like lithium, cobalt, and rare earths. India’s purchase of lithium mines in Argentina and global partnerships through KABIL are part of this effort.

Offshore mineral mining has also started, and the circular economy around critical minerals will help many sectors in India's growth story.

Reddy said strong Centre-State partnerships have brought in ₹4 lakh crore in revenue through auctions. Schemes like District Mineral Foundation Trusts and the State Mining Index show how States and the Centre are working together.

India is now speeding up the process of turning approved mines into operational ones, with full support for private players.