NEW DELHI: The Centre on Tuesday classified limestone entirely as a major mineral through a gazette notification issued on October 10, removing the earlier distinction based on end use. This means that leaseholders of limestone can now sell or utilize it for any purpose without regulatory restrictions.
Previously, limestone was classified as a minor mineral only when used in kilns to manufacture lime for building materials, while for all other uses—such as in cement production, steel, chemicals, fertilizers, and other industries—it was categorized as a major mineral.
According to the Ministry of Mines, this long-awaited reform fulfills the demand of hundreds of limestone leaseholders who had been seeking the freedom to sell limestone to the cement industry and other sectors without end-use-based constraints.
“This removal of limestone from list of minor mineral has fulfilled a long-standing demand of hundreds of limestone minor mineral leaseholders to enable them to freely sell to cement industries as well as to the other industries. This will increase income as well as employment in rural areas. Further, increase in availability of limestone from minor mineral leases to cement industry will enable quick expansion of cement manufacturing capacity in the country. This measure will give boost to construction activities in the country leading to employment generation and economic growth,” said the ministry.
The decision follows a recommendation from an Inter-Ministerial Committee led by NITI Aayog. The committee noted that the use of limestone in cement and industrial applications has now far exceeded its use in traditional lime kilns, making the old classification outdated.
To ensure a smooth regulatory transition, the ministry issued an order on October 13, under Section 20A of the Mines and Minerals (Development and Regulation) Act (MMDR Act), allowing the conversion of existing minor mineral limestone leases into major mineral leases. Under this order, existing leaseholders are required to register with the Indian Bureau of Mines (IBM) by March 31, 2026. Until that date, they may continue to pay royalty at the rates set by their respective state governments. Mining plans that were approved by state governments will remain valid until March 31, 2027, and leaseholders are expected to obtain IBM approval for their mining plans during this period.
The order also grants a temporary exemption from submitting digital aerial imagery of the lease area until July 1, 2027, and from penalties for non-filing of monthly and annual returns under Rule 45 of the Mineral Conservation and Development Rules (MCDR), 2017, until March 31, 2026. However, lessees must continue submitting returns to their respective state governments as per the existing rules.
The order also addresses pending applications for limestone mineral concessions under the previous minor mineral framework. In cases where the state government had issued a Letter of Intent (LoI) or where the auction process had been concluded and a preferred bidder selected before October 10, the mining lease shall be granted and executed under the applicable state rules for minor minerals, provided this is done within two years from the date of the order. Any applications where no LoI was issued before October 10 will lapse.
