A Parliamentary panel has flagged persistent delays between mine auctions and the start of operations, urging the government to consider setting up an inter-ministerial committee to monitor post-auction progress for mineral and critical mineral projects.

In its latest report, Self-Reliance in Minerals and Metals, the Standing Committee on Coal, Mines and Steel said that despite policy initiatives and simplified exploration norms, projects continue to face hurdles due to lengthy regulatory clearances, inadequate exploration, forest clearances even at the exploration stage, and significant time lags between auctions and operationalisation.

The committee recommended prioritising critical mineral projects for statutory approvals and proposed an inter-ministerial group to oversee post-auction milestones with a mandate to fast-track mine development. It also suggested considering penalties for delayed operationalisation and incentives for faster production to improve compliance and efficiency.

Acknowledging reforms undertaken between 2015 and 2023, the panel noted substantial changes to modernise India’s mineral sector regulatory framework. Key amendments to the Mines and Minerals (Development and Regulation) Act included introducing auctions for granting mineral concessions, setting a uniform lease period of 50 years in place of renewals, notifying private exploration agencies, and amending the Offshore Areas Mineral (Development and Regulation) Act to allocate operating rights through auctions.

Since 2015, a total of 486 mineral blocks have been auctioned, including 462 by state governments and 24 by the Centre. The committee said closing the gap between allocation and production is critical to securing mineral supplies and advancing self-reliance goals.