Only 105 of 720 mineral blocks auctioned since 2015 operationalised

Only 105 of 720 auctioned mineral blocks have become operational since 2015, as the government tightens rules to accelerate mine development

Of the 720 mineral blocks auctioned since the auction regime was introduced in the country in 2015, 105 blocks have been operationalised so far, Minister of State for Coal and Mines Satish Chandra Dubey said in a written reply in Parliament.

 

He also said mining revenue collection by the states increased around fivefold between 2015 and 2025-26, compared with the previous 11 years (2004-15).

 

The government has tightened the regulatory framework governing auctioned mines to speed up their operationalisation. In October 2025, it amended the Mineral (Auction) Rules, 2015, to introduce intermediary timelines for key milestones between the issuance of the Letter of Intent and execution of the mining lease, replacing the earlier system that prescribed only an overall timeline.

   

The amendments also introduced automatic declaration of the preferred bidder, automatic issuance of the Letter of Intent, accountability for delays by bidders and state governments, financial disincentives for delays attributable to bidders, and incentives for early operationalisation. The rules were further amended in March 2026 to strengthen the operationalisation framework and simplify procedures to expedite mine development.

 

The minister also said a record 212 mineral blocks were successfully auctioned during 2025-26, while 36 mineral blocks were operationalised during the year.

 

Dubey also shared state-wise data that showed significant variation in the pace of operationalisation. Odisha has emerged as the best-performing major mining state, with 35 of its 74 auctioned mineral blocks becoming operational. Karnataka has operationalised 18 of its 65 auctioned blocks, while Gujarat has operationalised 14 out of 58.

 

In contrast, Rajasthan, which has auctioned the highest number of mineral blocks in the country at 140, has operationalised only eight. Madhya Pradesh has brought 10 of its 127 auctioned blocks into operation, while Chhattisgarh has operationalised only five out of 64. Tamil Nadu, Uttar Pradesh, Jharkhand, Telangana, Arunachal Pradesh, Bihar and Uttarakhand are yet to operationalise any auctioned mineral blocks.