Home India Ministry of Mines Order under Section 20A of MMDR Act - Classification of mine...
Date: 2025-10-13 Category: Not Applicable State: Union Government Country: India

Order under Section 20A of MMDR Act - Classification of mineral Limestone

Issued by Ministry of Mines · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This order, issued by the Ministry of Mines on October 13, 2025, reclassifies 'Limestone used in kilns for manufacture of lime used as building material' from minor mineral to major mineral, effective from October 10, 2025. It provides directions regarding existing and pending leases of limestone, and the actions required by lease holders and State Governments. The order also specifies deadlines for registration, submission of mining plans, and compliance with the Mineral Conservation and Development Rules (MCDR). **Key Points / Main Content** * **Reclassification of Limestone:** * 'Limestone used in kilns for manufacture of lime used as building material' is now classified as a major mineral, effective October 10, 2025. * **Existing Minor Mineral Leases:** * Leases will be regulated as per the Mines and Minerals (Development and Regulation) Act, 1957. * Lease periods for post-MMDR Amendment Act, 2015 are 50 years. * Lease periods for pre-MMDR Amendment Act, 2015 will be extended. * **Directions for Existing Leases:** * Existing lease holders must register online with the Indian Bureau of Mines (IBM) by March 31, 2026, per Rule 45(1) of the MCDR, 2017. * Existing mines will continue to pay royalty to State Governments at existing rates until March 31, 2026. * Existing mining plans approved by State Governments remain valid until March 31, 2027, or expiry date, whichever is earlier. * Lessee must submit a copy of the existing approved mining plan to the Indian Bureau of Mines on or before 31st March, 2026. * For mining beyond March 31, 2027, lessees must submit a fresh mining plan to IBM at least 180 days prior. * **Exemptions:** * Exempt from filing digital aerial images of mining lease area under Rule 34A of the MCDR, 2017 on or before 1st July, 2026. * Exempt from filing of online self-assessment report as per the star rating template under Rule 35 of the MCDR 2017 for up to FY 2025-26. * Not penalized for non-filing of monthly and annual returns under Rule 45 of the MCDR, 2017 to the Indian Bureau of Mines till 31st March, 2026. * No penalty shall be imposed on such existing mines till 30th June, 2026 for contravention of the provisions of the MCR, 2016 and the MCDR, 2017. * **Pending Applications:** * Applications without a letter of intent issued before October 10, 2025, will lapse. * If a letter of intent or auction process was valid on/before October 10, 2025, the mining lease must be granted and executed within two years of the order's issue date. **Impact Analysis** **Existing Limestone Lease Holders** * **Impact:** Existing leaseholders now operate under major mineral regulations and have specific compliance deadlines. * **Action Required:** * Register with the Indian Bureau of Mines by March 31, 2026. * Continue paying royalty to State Governments at existing rates until March 31, 2026. * Submit a copy of the existing approved mining plan to the Indian Bureau of Mines on or before 31st March, 2026. * Submit a fresh mining plan to IBM at least 180 days prior to March 31, 2027 if planning to carry out mining beyond that date. **State Governments** * **Impact:** Must ensure compliance with the new classification and associated regulations. * **Action Required:** * Process existing leases according to new guidelines. * Approve mining plans submitted by lessees, with approval accorded on or before 31st March, 2026. **Applicants for Mineral Concessions** * **Impact:** The status of pending applications is directly affected by this order. * **Action Required:** * Applications without a letter of intent issued before October 10, 2025, will lapse. * If a letter of intent or auction process was valid on/before October 10, 2025, the mining lease must be granted and executed within two years of the order's issue date.

Key Entities Referenced

Mines and Minerals (Development and Regulation) Act, 1957: The primary legislation governing the development and regulation of mines and minerals in India, amended by this order. Limestone: The specific mineral being reclassified from a minor to a major mineral, significantly impacting mining regulations and lease conditions. Mineral Conservation and Development Rules, 2017 (MCDR, 2017): Rules related to mineral conservation and development. Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (MCR, 2016): Rules related to mineral concessions, other than atomic and hydrocarbon energy minerals. State Governments: Governments that are directed in this order regarding existing minor mineral leases of limestone.
Official Source Record View Original Source →
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No. M.VI-16/7/2024-Mines VI-Part(6) Government of India Ministry of Mines RKKKK Shastri Bhawan, New Delhi Dated the 13th October, 2025 ORDER WHEREAS, the Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter, ‘the Act’) was enacted to provide for development and regulation of -mines and minerals in the country. 2. AND WHEREAS, minor minerals are those minerals which are specified or notified under section 3(e) of the Act. 3. AND WHEREAS, the mineral ‘Limestone used in kilns for manufacture of lime used as building material’ was declared as minor mineral vide Notification No. G.S.R. 436, dated the 18' June, 1958 as amended by Notification No. G.S.R. 1199, dated 12th September, 1961 and further superseded by Notification No. G.S.R. 786(E), dated 23rd August, 1989 in exercise of the powers conferred by section 3(e) of the Act. Limestone when used for any other purpose is a mineral other than minor minerals (hereinafter, ‘major minerals’). 4 . AND WHEREAS, an Inter-Ministerial Committee was constituted on 4h March, 2024 in NITI Aayog on Mines and Minerals Sector. The said Committee in its report dated 4th November, 2024 has observed that presently, use of limestone in making lime has significantly reduced and most of limestone is used in cement manufacturing and in chemical industries, smelters, fertilizer unit, sugar factory etc. Considering that limestone is widely available in many parts of the country, and given its use predominant in cement industry, there appears compelling reason to classify limestone as major minerals. Accordingly, the Committee recommended that entry regarding limestone in notification of minor minerals may be deleted and all minor mineral leases of limestone may be converted as major mineral leases. 5. AND WHEREAS, the Central Government in exercise of the powers conferred by section 3(e) of the Act has amended the notification No. G.S.R. 786(E), dated 23rd August, 1989 to remove ‘Limestone used in kilns for manufacture of lime used as building material’ from the list of minor minerals vide Notification No. G.S.R 751 (E) dated 10th October, 2025. Therefore, on and from 10th October, 2025, all type of mineral Limestone is a major mineral. ea asl oe +/-— 2 6 . AND WHEREAS, as per Section 13 of the Act, the Central Government is empowered to make rules in respect of major minerals. The Central Government has framed the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (hereinafter, ‘MCR, 2016’) in exercise of the powers conferred by section 13 of the Act. 7 : AND WHEREAS, the Central Government has framed the Mineral Conservation and Development Rules, 2017 (hereinafter, ‘MCDR, 2017’) in exercise ofthe powers conferred by section 18 of the Act in the interest of conservation and systematic development of minerals in the country. 8. AND WHEREAS, pursuant to the reclassification of minor mineral Limestone as major minerals, the existing minor mineral leases of limestone will be regulated in accordance with the provisions of the Act and the rules framed thereunder in respect of other major minerals. As such, the lease period of the existing minor mineral leases of Limestone shall be governed as per section 8A of the MMDR Act on classification of Limestone as major mineral. Thus, lease period of mining leases granted after the commencement of the MMDR Amendment Act, 2015 shall be for the period of 50 years. Further, in case of mining leases granted before the commencement of the MMDR Amendment Act, 2015, the lease period shall be extended and be deemed to have been extended up to a period ending on 31st March, 2020 (for merchant mines) or 31st March, 2030 (for captive mines) with effect from the date of expiry of the period of renewal last made or till the completion of renewal period, if any, or a period of 50 years from the date of grant of such lease, whichever is later, subject to the condition that all the terms and conditions of the lease have been complied with. 9 . AND WHEREAS, various issues related to application of existing rules for major minerals may arise due to transition of the existing minor mineral mining leases to major mineral category, such as period for registration of lease holders with the Indian Bureau of Mines, approval of mining plan, royalty rates applicable, compliance of various requirements, etc. Accordingly, it is considered necessary to make certain transitory arrangements for smooth transition of the existing minor mineral mining leases of Limestone to major mineral category. 10. AND WHEREAS, it is also noted that certain applications for grant mineral concession in respect of minor mineral Limestone were pending before State Governments that, will be affected by categorization of ‘Limestone used in kilns for manufacture of lime used as building material’ to major mineral. Accordingly, a transitory period is required to be provided to the applicants that have already . PI ens aw vee Bi3 made progress to obtain mineral concession in respect of limestone as a minor mineral. 1 1 . AND WHEREAS, Section 20A of the Act provides that the Central Government may issue such directions to the State Governments, as may be required for the conservation of mineral resources, or on any policy matter in the national interest, and for the scientific and sustainable development and exploitation of mineral resources. 12 NOW THEREFORE, notwithstanding anything contained in the Act, the MCR, 2016 and the MCDR, 2017, in exercise of the powers conferred under Section 20A of the Act, the Central Government, for the conservation of mineral resources, in the national interest, and for the scientific and sustainable development and exploitation of mineral resources, hereby directs the following: A. Directions with respect to existing minor mineral leases of Limestone i. The existing lease holders in respect ofLimestone that were granted as minor mineral leases shall cause themselves to register online with the Indian Bureau of Mines under the provisions of Rule 45(1) of the MCDR 2017 on or before 31st March, 2026. ii. The existing mines ofsuch leases shall continue to pay royalty to the State Governments at the existing rates specified by the respective State Governments up to 31st March, 2026 or till further directions, whichever is earlier. iii. The existing mining plans for such leases approved by the respective State Governments shall continue to remain valid till 31st March, 2027 or their expiry, whichever is earlier, provided that the lessee shall submit a copy of the existing approved mining plan to the Indian Bureau of Mines on or before 31st March, 2026. For cases where the validity of the mining plan is expiring before 31st March, 2027: a. the lessee may submit a mining plan to the State Government for its approval for carrying out mining upto 31st March, 2027 provided that the approval of the State Government shall be accorded on or before 31st March, 2026. In such cases, the lessee shall submit a copy of the approved mining plan document to Indian Bureau of Mines on or before 30 April, 2026; OR, the lessee may submit the mining plan document for approval by the EROS G4" —_-- Mfates Indian Bureau of Mines to carry out mining beyond its validity period. For carrying out mining beyond31st March, 2027, the lessees will submit fresh mining plan for approval of IBM at least 180 days before 31st March, 2027. iv. All such mining leases shall be exempt from filing digital aerial images of mining lease area under Rule 34A of the MCDR, 2017 on or before 1st July, 2026. The existing lease holders of such leases shall submit digital aerial images of mining lease area to the Indian Bureau of Mines under Rule 34A of the MCDR, 2017 on or before 1st July, 2027. The existing financial assurance submitted to the State Governments at the existing rates for financial assurance given to the State Governments for the purposes of due and proper implementation of the progressive mine closure plan or the final mine closure plan, as the case may be, shall be considered to be valid till 318 March, 2027, for compliance of Rule 27 of the MCDR 2017. Vi. All such mining leases shall be exempt from filing of online self-assessment report as per the star rating template under Rule 35 of the MCDR 2017 for up to FY 2025-26. However, such lease holders shall be required to submit the online self-assessment report as per the star rating template for FY 2026-27 within the prescribed timeline, i.e., on or before 1S' July, 2027. Further, the existing lease holders shall be required to maintain three-star rating from FY 2029-30 and thereafter maintain the same on year-on-year basis. The lessees in respect of Limestone that were granted as minor mineral Vil. leases shall not be penalized for non-filing of monthly and annual returns under Rule 45 of the MCDR, 2017 to the Indian Bureau of Mines till 31st March, 2026, subject to the condition that the lessees shall continue to submit their returns to the State Governments as per the existing provisions and the lessees shall submit returns under Rule 45 of the MCDR, 2017 to the Indian Bureau of Mines from April, 2026 onwards. viii. No penalty shall be imposed on such existing minestill 30th June, 2026 for contravention of the provisions of the MCR, 2016 and the MCDR, 2017, other than Rule 45 of the MCDR, 2017 as above. ix. The exemptions from the rules are applicable only for the period as specified above and the respective rule shall be applicable beyond the period of exemption specified.=5 = B. Directions with respect to pending applications for grant of mineral concession in respect of Limestone as a minor mineral i. where an application has been made for grant of a mineral concession, but the State Government has not issued letter of intent (by whatever name called) for grant the mineral concession before 10th October, 2025, the application shall lapse. ii. where the State Government had issued letter of intent (by whatever name called) for grant of a mineral concession before 10th October, 2025 and such letter of intent was valid as on 10th October, 2025 or where the auction process for grant of mineral concession has been concluded and preferred bidder has been selected before 10th October, 2025 but the letter of intent (by whatever name called) for grant of mineral concession has not been issued, the mining lease shall be granted and executed in accordance with the rules made by the State Government in respect of minor minerals within a period of two years from the date of issue of this order. No mining lease shall be executed after the said period. iii. After the grant and execution of mining lease, all the provision of the Act and the rules made thereunder shall apply to such mining lease which are applicable to minerals other than minor mineral. aa P oa (Dinesh Mahur) Joint Secretary to the Government of India Phone No.: 011-23384334 To The Principal Secretaries/Secretaries, In-charge of Mining Department, All State Governments and Union Territories Copy for information to: The Controller General, Indian Bureau of Mines, Nagpur.

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