+
Centre increases mining area boundaries to boost critical minerals
COAL & MINING

Centre increases mining area boundaries to boost critical minerals

In a strategic move to enhance the mining of critical minerals, the Centre has increased the permissible area for individual mining leases more than fourfold. According to an order issued, the area limit for mining leases has been expanded from the current 10 sq km to 50 sq km. Similarly, for prospecting licences, which are granted in the case of composite licences, the limit has been increased from 25 sq km to 100 sq km.

"The Central Government, exercising the powers conferred under the proviso to clause (b) of sub-section (1) of section (6) of the MMDR Act, 1957, hereby increases the area limit for prospecting licence and mining lease for each of the 24 critical minerals listed in Part-D of the First Schedule to the MMDR Act, 1957, to 100 sq km and 50 sq km, respectively, for each of the States," the order stated.

This change comes after the Centre faced challenges in its initial auction of critical mineral blocks earlier this year. The source had previously reported on July 14 that 28 out of the 38 blocks announced in the first two auctions were annulled due to a lack of interest from potential bidders.

The policy shift is designed to address the unique challenges of mining critical minerals, which are often located in deep-seated deposits and have a lower recovery rate compared to bulk minerals like limestone and iron ore.

Initially, the area limits were established under the Mines and Minerals Development and Regulation (MMDR) Act to prevent cartelisation within the mining sector. However, recognising the strategic importance of critical minerals for various industries and national security, the government has decided to revise these limits.

"Critical minerals require extensive exploration and extraction efforts due to their deep-seated nature and low recovery rates from ore. Increasing the permissible area for mining and prospecting is crucial to make these operations economically feasible," an official said, noting that the decision falls within the provisions of the MMDR Act.

The MMDR Act allows the Centre to increase the area limits if it serves the interest of mineral development or the industry.

As the Centre expands the area limits for individual players, sector experts stress the importance of advancing technology to fully extract these minerals from the mines.

?There is an alarming trend of using broad terms such as ?strategically important? and ?national security? to support certain sectors or industries, and then selectively relaxing environmental compliances and public scrutiny,? commented Debadityo Sinha, Lead- climate & ecosystems, Vidhi Centre for Legal Policy, in a statement to the source. (Source: BS)

In a strategic move to enhance the mining of critical minerals, the Centre has increased the permissible area for individual mining leases more than fourfold. According to an order issued, the area limit for mining leases has been expanded from the current 10 sq km to 50 sq km. Similarly, for prospecting licences, which are granted in the case of composite licences, the limit has been increased from 25 sq km to 100 sq km. The Central Government, exercising the powers conferred under the proviso to clause (b) of sub-section (1) of section (6) of the MMDR Act, 1957, hereby increases the area limit for prospecting licence and mining lease for each of the 24 critical minerals listed in Part-D of the First Schedule to the MMDR Act, 1957, to 100 sq km and 50 sq km, respectively, for each of the States, the order stated. This change comes after the Centre faced challenges in its initial auction of critical mineral blocks earlier this year. The source had previously reported on July 14 that 28 out of the 38 blocks announced in the first two auctions were annulled due to a lack of interest from potential bidders. The policy shift is designed to address the unique challenges of mining critical minerals, which are often located in deep-seated deposits and have a lower recovery rate compared to bulk minerals like limestone and iron ore. Initially, the area limits were established under the Mines and Minerals Development and Regulation (MMDR) Act to prevent cartelisation within the mining sector. However, recognising the strategic importance of critical minerals for various industries and national security, the government has decided to revise these limits. Critical minerals require extensive exploration and extraction efforts due to their deep-seated nature and low recovery rates from ore. Increasing the permissible area for mining and prospecting is crucial to make these operations economically feasible, an official said, noting that the decision falls within the provisions of the MMDR Act. The MMDR Act allows the Centre to increase the area limits if it serves the interest of mineral development or the industry. As the Centre expands the area limits for individual players, sector experts stress the importance of advancing technology to fully extract these minerals from the mines. ?There is an alarming trend of using broad terms such as ?strategically important? and ?national security? to support certain sectors or industries, and then selectively relaxing environmental compliances and public scrutiny,? commented Debadityo Sinha, Lead- climate & ecosystems, Vidhi Centre for Legal Policy, in a statement to the source. (Source: BS)

Next Story
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App