Centre mandates auction of all limestone mines

The centre has notified limestone as a major mineral, effectively barring state governments from allocating its blocks. An official statement said limestone had an end-use-linked dual classification as a minor and major mineral. ‘Limestone used in kilns for manufacture of lime used as building material’ had been notified as a minor mineral. Otherwise, it was a major mineral when used for any other purpose like production of cement, chemicals, sugar, fertilizer, and steel. The Mines Ministry has now removed end use distinction, the statement added.

“This move will mandate auction of all limestone mines in the country,” a senior official told ET.

India is the third largest producer of limestone, clocking 449.58 million tonnes output in 2024-25. Limestone is also the most produced mineral in the country by volume. Rajasthan is the leading producer of this mineral in the country, accounting for a fifth of total production.

"Use of limestone in making lime has significantly reduced over the years and most of limestone is now used in cement manufacturing and in chemical industries, smelters, fertilizer unit, sugar factory,” the mines ministry said adding the classification of all types of limestone as major mineral will promote ease of doing business as the lease holders will be able to sell or utilise limestone for any purpose, without any end-use restrictions.

Existing lease holders of minor mineral limestone need to register with the Indian Bureau of Mines ( IBM) by March 2026 and pay royalty as specified by the respective State Governments, the statement said. The ongoing approved mining plans will be good till March 2027.