India allows free sale of limestone by leaseholders to boost rural incomes, cement capacity

India has allowed limestone mining leaseholders to freely sell the mineral to cement and other industries, aiming to boost rural incomes and accelerate expansion of cement manufacturing capacity.

The Ministry of Mines has now classified limestone as a major mineral by removing end-use restrictions that previously distinguished it as either a major or minor mineral. The government said the move will promote ease of doing business, allowing leaseholders to sell or utilise limestone for any purpose.

The decision follows recommendations from an Inter-Ministerial Committee on the Mines & Minerals sector, chaired by a NITI Aayog member, after consultations with various stakeholders. The Ministry noted that the use of limestone in lime-making has declined over the years, with most production now serving the cement, chemical, fertiliser, smelting, and sugar industries.

Calling the move a fulfilment of a long-standing demand from hundreds of limestone leaseholders, the Ministry said it would generate more employment across sectors and improve efficiency in mineral utilisation.

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Previously, limestone was classified as both a minor and a major mineral depending on its end-use. Through a gazette notification dated 10 October 2025, the Ministry has deleted “limestone used in kilns for manufacture of lime used as building material” from the category of minor minerals.

To ensure a smooth regulatory transition of existing minor mineral leases to major mineral status, the Ministry issued an order on 13 October 2025 under Section 20A of the Mines and Minerals (Development and Regulation) Act.

The order provides that:

(i) Existing minor mineral limestone leaseholders will have time until 31 March 2026 to register and pay royalty at current state-specified rates.

(ii) Existing mining plans approved by state governments will remain valid until 31 March 2027, with new approvals to be sought in the interim.

(iii) Leaseholders are exempt from filing digital aerial images of mining areas until 1 July 2027 and from submitting online self-assessment reports under the star rating template until the same date.

(iv) Penalties for non-filing of monthly and annual returns under Rule 45 of the MCDR, 2017 will be waived until 31 March 2026, provided lessees continue submitting returns to state governments.

The order also clarifies the status of pending applications for limestone mining concessions. Where a Letter of Intent (LoI) was issued or an auction concluded before 10 October 2025, leases will be granted as per existing state rules within two years of the order’s date. Applications without an LoI by that date will lapse.