India mining faces lengthy clearance delays and technology gaps, with only 125 of 733 mineral blocks auctioned by states in operation as of August 2026, according to sector reviews shared by the coal and mines ministries with states.

Key Takeaways

  • The auctioned blocks cover different minerals, and the remainder are at various stages of clearance.
  • The interval from award to production exceeds seven years for major and critical mineral blocks.
  • The Centre has urged states to coordinate on clearances and develop a framework for extracting beach sand minerals.

India mining faces clearance and land hurdles

The reviews identify land acquisition as the largest critical-path dependency for mining projects. Fragmented land records, disputed titles, compensation assessments, resistance to physical possession and rehabilitation and resettlement hurdles can all delay projects.

Forest clearance proposals can also stall where states have not identified land banks for compensatory afforestation. Multiple sequential approvals, overlapping levies and state-level cesses add to regulatory complexity.

The figures on auctioned blocks cover minerals broadly, rather than critical minerals alone. The reviews say the remaining blocks were at various stages of clearance as of August 2026.

Critical minerals and infrastructure gaps

Concept notes prepared ahead of the sixth national conference of chief secretaries describe high import reliance and nascent deep-drilling technologies as sources of domestic supply-chain vulnerability. They also identify China-linked supply-chain and technology dependencies as challenges for critical minerals.

As near-surface deposits are depleted, reaching deeper and more structurally complex mineral systems presents financial and technological challenges. The notes cite high costs for advanced technology, investor risk aversion and limited domestic capacity to process high-purity strategic elements.

The Centre has urged states to develop an extraction framework for beach sand minerals such as monazite, with the aim of making rare earth elements available to newer industries. The reviews also call for better links between mines and transport infrastructure, including rail sidings, ports and high-capacity roads.

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