India: Chhattisgarh govt unlocks mining potential with landmark surface rights reform

• Guaranteed access for leaseholders to mining areas
• Removes delays in mine operationalisation

Chhattisgarh has introduced a major policy reform by issuing a Gazette Notification that operationalises the Central Government’s directives on ‘Surface Rights’ removing a long-standing barrier to the commencement of mining operations. With the notification issued on 23 October 2025, the state has taken a decisive step to streamline compensation determination and ensure timely access to mining lease areas.

Aligned with the Mines and Minerals (Development and Regulation) Act, 1957 and the Mineral Concession Rules, 2016, the new framework empowers district collectors to determine annual surface compensation, establishes strict timelines for payments, and guarantees unobstructed entry for leaseholders.

The reform is a direct response to the Government of India’s landmark order dated 3 July 2024, which highlighted delays in surface rights acquisition as the leading cause of stalled or slow-operationalising auctioned mining blocks.

Key provisions

• District Collectors designated as competent authorities for compensation determination
• Annual surface compensation mandatory by 30 June
• Pro-rata compensation for part-year mining activities
• 90-day deadline for authorities to decide compensation
• Guaranteed access for leaseholders to their allotted areas

Impact assessment

This framework is expected to accelerate the opening of new mines, reduce risk of lease lapses, and improve investor confidence. Landowners benefit from a fair, transparent, and regulated system of compensation, while the State stands to gain from increased mineral output, job creation, and higher statutory revenues.

Chhattisgarh’s timely alignment with the Central Government’s directive marks it as a forward-thinking mineral-rich State focused on administrative clarity and industrial growth. By clearing procedural blockages and ensuring legal certainty, the State has laid a strong foundation for expansion in mining activities and broader economic development.