Ministry of Mines Fully Classifies Limestone as a Major Mineral
The Ministry of Mines has officially classified limestone as a major mineral, a significant shift from its previous dual classification as both a minor and major mineral based on its end use. This change, announced in a gazette notification dated October 10, 2025, aims to streamline regulations and enhance business operations in the mining sector. The decision follows recommendations from an Inter-Ministerial Committee and is expected to facilitate the transition of existing minor mineral leases to major mineral leases, promoting greater flexibility for leaseholders.
Removal of Dual Classification
The recent notification from the Ministry of Mines eliminates the previous classification of limestone as both a minor and major mineral. Under the old system, limestone was categorized as a minor mineral when used in kilns for lime production, while it was considered a major mineral for other applications, such as cement and chemical production. The new classification recognizes all forms of limestone as major minerals, thereby removing the end-use distinction. This change reflects the evolving usage of limestone, which has seen a decline in its application for lime manufacturing, with a significant portion now directed towards cement and other industrial uses.
Facilitating Business Operations
To ease the transition for existing leaseholders, the Ministry has issued an order on October 13, 2025, under section 20A of the Mines and Minerals (Development and Regulation) Act. This order allows current minor mineral leaseholders to continue operations without disruption as they transition to major mineral leases. Leaseholders have until March 31, 2026, to register with the Indian Bureau of Mines (IBM) and can pay royalties at existing state rates during this period. Additionally, existing mining plans approved by state governments will remain valid until March 31, 2027, allowing for a smoother regulatory adjustment.
Provisions for Existing Leaseholders
The Ministry’s order includes several provisions aimed at supporting leaseholders during this transition. These include exemptions from filing digital aerial images of mining areas and online self-assessment reports until July 1, 2027. Furthermore, leaseholders will not face penalties for failing to submit monthly and annual returns to the Indian Bureau of Mines until March 31, 2026, provided they continue to report to state governments as required. This leniency is designed to alleviate the administrative burden on leaseholders as they adapt to the new classification.
Impact on the Mining Sector
The decision to classify limestone entirely as a major mineral addresses long-standing demands from leaseholders, enabling them to sell limestone freely to cement and other industries. This change is anticipated to boost income and create jobs in rural areas, as increased availability of limestone will support the expansion of cement manufacturing capacity in the country. The Ministry’s move is expected to stimulate construction activities, thereby contributing to economic growth and employment generation across various sectors.
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