Ministry of Mines Classifies Limestone as Major Mineral

The Ministry of Mines has taken a landmark decision by completely classifying limestone as a major mineral, effective from October 10, 2025. This move eliminates the previous distinction based on end-use, where limestone used in kilns for manufacturing lime as a building material was considered a minor mineral, while limestone used for other purposes like cement, chemicals, sugar, fertilizer, and steel production was classified as a major mineral. The reclassification is expected to streamline regulatory processes, boost industrial growth, and promote ease of doing business.

Why the Change?

The decision was driven by recommendations from an Inter-Ministerial Committee on Mines & Minerals Sector, chaired by a Member of NITI Aayog. The committee engaged with various stakeholders and noted that the use of limestone for lime production has significantly declined over the years. Today, most limestone is utilized in cement manufacturing and chemical industries, making the distinction between minor and major minerals redundant.

Key Benefits of Reclassification

Ease of Doing Business: Leaseholders can now sell or utilize limestone for any purpose without restrictions tied to its classification as a minor or major mineral. This will simplify operations and remove artificial regulatory barriers.
Smooth Transition: Existing minor mineral leases of limestone will seamlessly transition to major mineral leases. The Ministry has issued an order under Section 20A of the MMDR Act to facilitate this process.
Boost to Cement Industry: Increased availability of limestone will enable rapid expansion of cement manufacturing capacity, supporting construction activities and infrastructure development.
Economic Growth and Employment: The reclassification will increase income for leaseholders, create jobs in rural areas, and contribute to overall economic growth.

Provisions for Transition 

To ensure a smooth regulatory transition, the Ministry has outlined several provisions:

Registration Deadline: Existing leaseholders of minor mineral limestone leases have until March 31, 2026, to register with the Indian Bureau of Mines (IBM) and pay royalties at current state-specified rates.
Mining Plan Continuation: State-approved mining plans will remain valid until March 31, 2027, with IBM approval required thereafter.
Exemptions: Leaseholders are exempt from filing digital aerial images and online self-assessment reports until July 1, 2027. Penalties for non-filing of monthly and annual returns are waived until March 31, 2026, provided returns are submitted to state governments.
Pending Applications: Applications for minor mineral concessions will be honored if the State Government issued a Letter of Intent (LOI) or concluded the auction process before October 10, 2025. Applications without an LOI before this date will lapse.

Impact on Industries and Rural Areas 

This decision fulfills a long-standing demand from hundreds of limestone leaseholders, enabling them to freely sell limestone to cement and other industries. The increased availability of limestone will accelerate industrial growth, particularly in the cement sector, which is vital for construction and infrastructure development. Additionally, the move is expected to generate employment opportunities and boost incomes in rural areas, contributing to inclusive economic growth.

A Step Towards Progress

The reclassification of limestone as a major mineral marks a significant step in India’s journey toward industrial and economic progress. By removing outdated distinctions and promoting ease of doing business, the Ministry of Mines has paved the way for increased investment, job creation, and sustainable development. This decision is not just a regulatory change—it is a catalyst for growth, innovation, and prosperity across industries and communities. As the cement industry expands and construction activities surge, the ripple effects of this policy will be felt across the nation, driving India closer to its development goals.

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Source: Ministry of Mines

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