In a major policy reform, the Ministry of Mines has announced the complete reclassification of limestone as a major mineral, eliminating the previous distinction based on its end-use. Earlier, limestone used in kilns for the manufacture of lime for building purposes was classified as a minor mineral, while limestone used for industrial purposes such as cement, chemicals, fertilizers, steel, and sugar production was categorized as a major mineral.
This differentiation often led to regulatory complications and limited the ability of leaseholders to freely sell their produce. With the latest notification, the Ministry has simplified this classification, enabling a uniform approach that promotes ease of doing business and encourages industrial growth.
"The Ministry of Mines vide gazette notification dated 10th October, 2025 has removed above distinction based on the end use by deleting ‘Limestone used in kilns for manufacture of lime used as building material’ from the category of minor minerals", official statement said.
To ensure a smooth regulatory transition, the Ministry issued a subsequent order on 13th October 2025 under Section 20A of the MMDR Act, allowing existing minor mineral leases of limestone to operate as major mineral leases without disruption. This measure ensures that leaseholders can continue their operations seamlessly while expanding their market reach.
The decision follows the recommendations of an Inter-Ministerial Committee on Mines & Minerals Sector, chaired by a Member of NITI Aayog. The committee held extensive discussions with various stakeholders, taking into account the changing usage patterns of limestone. Over the years, the use of limestone for lime production has significantly decreased, with the majority now being consumed in cement manufacturing, chemical industries, smelters, fertilizers, and sugar factories. By classifying all limestone as a major mineral, the Ministry has removed unnecessary regulatory hurdles and created a more business-friendly environment for the mining sector.
To ensure a smooth transition of existing minor mineral limestone leases to the major mineral category, the Ministry of Mines issued an order under Section 20A of the MMDR Act. The order provides several key provisions to support leaseholders during the transition period:
- Registration with IBM and Royalty Payment: Existing minor mineral limestone leaseholders are allowed time until 31st March 2026 to register their leases with the Indian Bureau of Mines (IBM). During this period, they may continue paying royalties at the rates specified by the respective State Governments.
- Continuation of Mining Plans: Leaseholders can continue operating under their existing mining plans approved by the State Governments until 31st March 2027. In the meantime, they are required to seek approval for the mining plan from IBM to ensure compliance with the new major mineral classification.
- Exemptions from Digital Filings: The order provides temporary exemptions from certain reporting requirements. Leaseholders are not required to file digital aerial images of the mining lease area until 1st July 2027. Similarly, they are exempted from submitting the online self-assessment report under the star rating template until the same date.
- Exemption from Penalties: No penalties will be imposed on leaseholders for non-filing of monthly and annual returns to IBM under Rule 45 of the MCDR, 2017, up to 31st March 2026. However, it is mandatory that they continue submitting their returns to the State Governments as per existing provisions.
The removal of limestone from the list of minor minerals fulfills a long-standing demand of hundreds of leaseholders, allowing them to freely sell limestone to cement and other industries. This move is expected to boost income and generate employment in rural areas, providing much-needed economic opportunities for local communities.
Moreover, the increased availability of limestone for the cement sector will enable rapid expansion of manufacturing capacity, supporting the country’s growing infrastructure needs. By facilitating greater production and supply, this measure is set to accelerate construction activities, create jobs, and contribute to overall economic growth across India.
The order dated 13th October 2025 also addresses pending applications for mineral concessions in respect of limestone as a minor mineral. If the State Government had issued a Letter of Intent (LOI) for granting a mineral concession before 10th October 2025, or if the auction process for a concession had concluded and a preferred bidder selected before that date, the mining lease will be granted and executed in accordance with the rules framed by the State Government for minor minerals. This process must be completed within two years from the date of the order. However, applications for which the State Government had not issued an LOI before 10th October 2025 will lapse automatically.
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