Minerals and Mining in India Explained

Minerals and mining in India refer to the discovery, extraction and use of the country’s wide range of mineral resources, including coal, iron ore, bauxite, limestone, manganese, copper and many others, regulated mainly by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) under the Ministry of Mines. India has one of the most diverse mineral endowments in the world, and mining supplies raw material for steel, cement, power, aluminium and, increasingly, the clean energy transition.

Minerals and mining in India are concentrated in a belt of mineral-rich states across the east and centre of the country, with Odisha, Jharkhand, Chhattisgarh and Karnataka among the leaders. This explainer covers the main mineral groups, the leading states, the legal framework and the 2015 auction regime, the role of the Geological Survey of India, critical minerals and KABIL, and the balance between development, the environment and tribal communities. Last reviewed: 9 October 2026.

Key Takeaways

• Minerals and mining in India are governed by the Mines and Minerals (Development and Regulation) Act, 1957, which was substantially amended in 2015 to require auctions for new mineral concessions.
• Odisha, Jharkhand, Chhattisgarh and Karnataka are among the leading mineral-producing states in India, holding large deposits of iron ore, coal, bauxite and chromite.
• The Geological Survey of India (GSI), established in 1851 and headquartered in Kolkata, is the country’s principal agency for geological mapping and mineral exploration.
• India classifies minerals as fuel, metallic, non-metallic and minor minerals, with the Central Government controlling major minerals and State Governments controlling minor minerals.
• Khanij Bidesh India Limited (KABIL), set up in 2019, acquires critical mineral assets such as lithium and cobalt abroad for India’s industry.
• Mining in tribal and forest areas is subject to environmental clearances, forest laws, the Forest Rights Act, 2006 and the PESA Act, 1996, which makes community consent a central issue.

What minerals does India have?

India has deposits of almost every major mineral group, including fuel minerals, metallic minerals and non-metallic minerals, and the country is a leading producer of several of them. The mineral map of India follows its geology: the ancient Peninsular shield in the east and centre holds most of the metallic and coal wealth.

The Indian classification is practical. Fuel minerals include coal, lignite, petroleum and natural gas. Metallic minerals are divided into ferrous minerals such as iron ore, manganese and chromite, and non-ferrous minerals such as bauxite, copper, lead, zinc and gold. Non-metallic minerals include limestone, dolomite, mica, gypsum and phosphate. Atomic minerals such as uranium, thorium and monazite are treated separately because of their strategic role.

Which states lead in mineral production?

Odisha, Jharkhand, Chhattisgarh and Karnataka are among the leading mineral-producing states in India, with Rajasthan, Madhya Pradesh, Andhra Pradesh and Gujarat also important. The eastern and central plateau is the heart of Indian mining.

• Odisha: holds a very large share of the country’s iron ore, bauxite and chromite, with major coal reserves in the Talcher and Ib valley fields. The Sukinda valley is known for chromite.
• Jharkhand: rich in coal, iron ore, mica, copper and uranium. Jharia is a historic coalfield, and Jaduguda is associated with uranium mining.
• Chhattisgarh: large coal reserves in the Korba and Raigarh areas, iron ore at Bailadila, and bauxite and tin deposits.
• Karnataka: iron ore in the Bellary-Hospet region, gold at Hutti, and manganese and limestone.
• Rajasthan: zinc and lead near Zawar, copper at Khetri, limestone, marble and sandstone.
• Madhya Pradesh: copper at Malanjkhand, manganese and India’s main diamond-bearing area at Panna.

Coastal states also contribute: the beach sands of Kerala, Tamil Nadu and Odisha contain monazite and other heavy minerals, while Gujarat produces limestone, bauxite and lignite. Offshore minerals fall under the Offshore Areas Mineral (Development and Regulation) Act, 2002.

What laws govern mining in India?

Mining in India is governed principally by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), which regulates the grant of prospecting licences and mining leases for all minerals other than petroleum and natural gas. Entry 54 of the Union List allows Parliament to regulate mines and mineral development when it declares this expedient in the public interest, while Entry 23 of the State List covers regulation of mines subject to that Union law.

Several other laws and rules apply alongside the MMDR Act.

• The Mineral Concession Rules and Mineral Conservation and Development Rules set the operating and conservation conditions.
• The Coal Mines (Nationalisation) Act, 1973 nationalised coal mining, and the Coal Mines (Special Provisions) Act, 2015 reopened coal block allocation through auction.
• The Forest (Conservation) Act, 1980, now called the Van (Sanrakshan Evam Samvardhan) Adhiniyam, requires central approval to use forest land for mining.
• The Environment (Protection) Act, 1986 and the Environmental Impact Assessment notification of 2006 require environmental clearance for mining projects.
• The Mines Act, 1952 and the Directorate General of Mines Safety (DGMS) deal with workers’ safety.
• The National Mineral Policy, 2019 sets out policy goals such as sustainable mining and private investment.

Under the MMDR Act, minerals are divided into major minerals, which are regulated by the Central Government, and minor minerals, such as building stone, gravel and ordinary sand, which State Governments regulate directly.

How did the 2015 auction regime change mining?

The 2015 auction regime changed mining in India by replacing the earlier first-come-first-served system of granting mineral concessions with competitive auctions, so that the right to mine is awarded to the bidder offering the best price. The change came through the Mines and Minerals (Development and Regulation) Amendment Act, 2015, in force from 12 January 2015.

The reform followed controversies over discretionary allocation, including the coal block allocation cases decided by the Supreme Court in 2014, which cancelled many coal block allocations. The Shah Commission and several state inquiries had also documented illegal mining in iron ore regions.

Main features of the 2015 amendment

• Mineral concessions for notified minerals are granted through auction by the state governments.
• Mining leases are valid for 50 years, with provisions on extension and renewal.
• District Mineral Foundations (DMFs) were created in mining districts to benefit people affected by mining, funded through a share of royalty paid by lease holders.
• The National Mineral Exploration Trust (NMET) was set up to fund regional and detailed exploration, supported by a levy on mining leases.
• The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) directs DMF funds to health, education, water and livelihood projects in affected areas.

Later changes

Further amendments in 2020 and 2021 allowed captive mines to sell a portion of surplus output and removed the distinction between captive and merchant mines. A 2023 amendment enabled auction of critical mineral blocks by the Central Government, allowed private exploration licences, and limited the list of atomic minerals reserved for government.

What is the role of the Geological Survey of India?

The Geological Survey of India (GSI) is the national agency that maps India’s geology and explores for minerals. It was founded in 1851, initially to find coal for the railways, and is one of the oldest geological surveys in the world. It operates under the Ministry of Mines and is headquartered in Kolkata.

The GSI carries out geological mapping, mineral exploration, geohazard studies including landslide and earthquake work, and marine geology. It also contributes to the Mineral Resource classification used across the country, including the United Nations Framework Classification for resources. Exploration activities also involve the Mineral Exploration and Consultancy Limited (MECL), a public sector company, and the Atomic Minerals Directorate for Exploration and Research (AMD) for atomic minerals.

The Indian Bureau of Mines (IBM), based in Nagpur, is a separate body that regulates scientific mining, approves mining plans and compiles national mineral statistics.

What are critical minerals and what is KABIL?

Critical minerals are minerals whose supply is essential to the economy, clean energy and national security but is vulnerable to supply disruption, such as lithium, cobalt, nickel, graphite and rare earth elements. India has published a list of 30 critical minerals identified in 2023 and has built a mission to secure supply of them.

Khanij Bidesh India Limited (KABIL) is a public sector company established in 2019 as a joint venture of the National Aluminium Company (NALCO), Hindustan Copper Limited (HCL) and Mineral Exploration and Consultancy Limited (MECL). Its purpose is to identify and acquire strategic mineral assets overseas, such as lithium and cobalt, for the Indian economy. It has pursued lithium opportunities in countries including Argentina and Australia.

Domestic efforts complement overseas acquisition. The GSI has reported lithium inferred resources in Jammu and Kashmir, and the government has launched a National Critical Mineral Mission to expand exploration, processing and recycling. Indian Rare Earths Limited (IREL) processes beach sand minerals, including monazite, which contains rare earth elements. India remains import-dependent for several critical minerals, a vulnerability that policy now tries to address.

How does mining affect the environment and tribal communities?

Mining affects the environment and tribal communities because many mineral deposits lie under forests and in Scheduled Areas where Adivasi communities live. Mining can bring revenue and jobs, but it can also cause deforestation, displacement, water pollution and loss of livelihood.

The law attempts to balance these concerns.

• The Samatha judgment of 1997 held that government land in Scheduled Areas cannot be leased to private mining companies, and it protected tribal land rights under the Fifth Schedule.
• The Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) empowers gram sabhas in Scheduled Areas to be consulted on land acquisition.
• The Forest Rights Act, 2006 recognises community and individual forest rights, and in the Niyamgiri case of 2013 the Supreme Court asked gram sabhas to decide on a bauxite project that affected their sacred hills.
• Environmental clearance involves impact assessment and public hearings.
• Mine closure and reclamation plans are part of mining plans approved by the IBM.

Illegal mining remains a continuing concern. The Shah Commission reported on illegal iron ore and manganese mining in several states in the early 2010s, and the Supreme Court restricted mining in the Bellary region and Goa at different points. The star rating system for mines, introduced by the Ministry of Mines, scores mines on sustainable practices.

What is the economic role of mining and what are its challenges?

Mining plays a foundational economic role in India by supplying raw material to steel, power, cement and manufacturing, and by generating royalties, jobs and state revenue in mineral-rich districts. The mining sector’s direct share of national output is modest, but its indirect importance is large, since the industries it feeds account for much of industrial growth.

Several challenges persist.

• Exploration depth is limited compared with leading mining nations, so many deposits remain poorly characterised.
• Import dependence continues for coking coal, copper concentrate and many critical minerals.
• Delays in environmental and forest clearances slow project start-ups.
• Mine safety, including accidents in coal mines and unregulated small mines, requires continuous enforcement.
• The benefits of mining do not always reach the districts that host it, which the DMF system tries to address.

Bottom Line

Minerals and mining in India form a strategic sector built on rich deposits of coal, iron ore, bauxite and many other minerals, regulated by the MMDR Act, 1957 and reshaped by the 2015 auction regime. The next phase depends on critical minerals, deeper exploration and fair balancing of environmental protection and the rights of tribal communities.

Frequently Asked Questions

What are the main minerals found in India?

The main minerals found in India are coal, iron ore, bauxite, manganese, chromite, copper, limestone and mica. India also has deposits of zinc, lead, gold and atomic minerals such as uranium and monazite. These are grouped as fuel, metallic, non-metallic and minor minerals.

Which Indian state has the most minerals?

Odisha is often regarded as the most mineral-rich state, with large shares of India’s iron ore, bauxite and chromite and significant coal reserves. Jharkhand, Chhattisgarh and Karnataka are also leading mineral states. The ranking varies by mineral, so no single state leads in everything.

What is the MMDR Act?

The MMDR Act is the Mines and Minerals (Development and Regulation) Act, 1957, India’s main law for regulating mining. It governs prospecting licences and mining leases for all minerals except petroleum and natural gas. It was significantly amended in 2015 to introduce auctions and District Mineral Foundations.

What is the role of the Geological Survey of India?

The Geological Survey of India (GSI) maps the country’s geology and explores for mineral resources. It was founded in 1851 and is headquartered in Kolkata under the Ministry of Mines. It also works on geohazards and marine geology.

What is KABIL?

KABIL, or Khanij Bidesh India Limited, is an Indian public sector company set up in 2019 to acquire critical mineral assets overseas. It is a joint venture of NALCO, Hindustan Copper Limited and MECL. Its focus includes lithium and cobalt for batteries and clean energy.

What is the District Mineral Foundation?

A District Mineral Foundation (DMF) is a trust created in each mining district under the 2015 amendment to the MMDR Act. It uses contributions from mining lease holders to fund welfare projects for people affected by mining. Spending is guided by the Pradhan Mantri Khanij Kshetra Kalyan Yojana.

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