- Lease terms revised to 50 years for leases granted after 2015
- Current mining plans to remain valid till 31 Mar’27 or expiry
The Indian government on Tuesday has reclassified limestone as a major mineral completely, eliminating the earlier end-use-based distinctions on the sale or utilisation of the mineral by leaseholders. These new rules are set to take effect from 10 October 2025.
Implications
An inter-ministerial government committee had on 4 November 2024 had observed that the use of limestone in making lime had significantly reduced, and most of the limestone mined was now being used in cement manufacturing and in chemical industries, smelters, fertiliser units, sugar factories, etc. The committee had recommended that the mineral, thus, be classified as a major mineral.
The central government has acted on it. Pursuant to the reclassification of limestone as a major mineral, the existing 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. For the remaining term of the lease (granted as a minor mineral), the mine will be governed as per section 8A of the MMDR Act.
Thus, the lease period of mining leases granted after the commencement of the MMDR Amendment Act, 2015, shall be for a period of 50 years.
In case of mining leases granted before the 2015 Amendment, the lease shall be extended and be deemed to have been extended up to a period ending on 31 March 2020 (for merchant mines) or 31 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.
A government notification provides clarity on the transition.
The existing mines shall continue to pay royalty to the state governments at the existing rates specified by the respective states up to 31 March 2026. Their current mining plans shall remain valid till 31 March 2027 or their expiry, whichever is earlier, and the lessees are required to submit a copy of their approved mining plan to the Indian Bureau of Mines on or before 31 March 2026.
The existing lessees must submit digital aerial images of the lease area to the Indian Bureau of Mines under Rule 34A of the MCDR, 2017, on or before 1 July 2027. All such lessees will 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’26 but must submit it in time for FY’27 and maintain a three-star rating from FY’30 onwards.
Pending applications that have not received a letter of intent (LoI) from the respective State Government (as on 10 October 2025) stand lapsed. Applicants with an LoI valid as on 10 October 2025 and successful bidders of auctions, concluded before 10 October 2025, shall be granted leases.
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