Centre Makes Auction Mandatory for All Limestone Mines

In a significant policy move, the Government of India has officially reclassified limestone as a major mineral, ending its dual categorisation and reshaping the country’s mining landscape. The decision is expected to simplify procedures, promote transparency, and create a uniform regulatory framework for one of India’s most produced minerals.

Reclassification and Its Impact

The reclassification eliminates the long-standing distinction that treated limestone differently depending on its end use. Previously, limestone used in kilns for lime production was categorised as a minor mineral, while its use in industries such as cement, fertilisers, steel, and chemicals classified it as a major mineral. The Ministry of Mines has now done away with this end-use-based system.

India’s Production Strength and Industry Outlook

India is currently the third-largest producer of limestone in the world, registering a production of 449.58 million tonnes in FY 2024–25. The mineral remains the most produced in the country by volume, with Rajasthan contributing around 20 per cent of the total output. According to the Ministry of Mines, “use of limestone in making lime has significantly reduced over the years, and most of limestone is now used in cement manufacturing and in chemical industries, smelters, fertiliser units, and sugar factories.”

The ministry added that a uniform classification will “promote ease of doing business” by allowing leaseholders to sell or utilise limestone for any purpose without end-use restrictions. This move is also expected to enhance efficiency and support industrial growth across sectors reliant on limestone as a key input.

Transition for Existing Leaseholders

As part of the transition, current leaseholders who previously operated under minor mineral licences must register with the Indian Bureau of Mines (IBM) by March 2026. They will also be required to pay royalty fees determined by their respective state governments. The ministry has clarified that existing approved mining plans will remain valid until March 2027, providing sufficient time for adaptation to the new regulatory framework.

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Conclusion

The Centre’s decision to unify limestone classification marks a decisive shift toward standardised mining governance. By mandating auctions and removing end-use barriers, the move aims to strengthen industry confidence, promote efficiency, and position India’s limestone sector for sustained growth.

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