Chhattisgarh emerges as model state in mining sector

Raipur – Mineral-rich Chhattisgarh has shown significant progress in the mining sector in recent years. Focusing on transparency, accountability, and technological innovation, the state has implemented several structural reforms in mineral administration, positioning Chhattisgarh among the country’s leading mining states.
New explorations have confirmed the availability of critical, strategic, and rare earth minerals in the state, alongside world-class deposits of iron ore, coal, limestone, bauxite, and tin ore, strengthening the state’s global profile.
The state’s mining sector contributes approximately 10 per cent to the Gross State Domestic Product (GSDP) and accounts for about 17 per cent of India’s total mineral production.
Chhattisgarh’s mineral revenue has increased 34 times over the last 25 years. Mineral revenue stood at just ₹429 crore at the time of the state’s formation and rose to ₹14,592 crore in the financial year 2024-25. This achievement results from the state’s robust mineral policy and sustained administrative reforms.
Under the Mineral Auction Rules, 2015, framed pursuant to the amended Mines and Minerals (Development and Regulation) Act, 1957, the state has successfully auctioned 60 mineral blocks so far. These include 15 iron ore, 14 bauxite, 18 limestone, and 13 critical and strategic mineral blocks. The auction process has also commenced for five new blocks (two limestone, one iron ore, one gold, and one base metal block).
The Directorate of Geology and Mining, Chhattisgarh, has signed Memoranda of Understanding (MoUs) with IIT Bombay, IIT (ISM) Dhanbad, and Coal India Limited for long-term collaboration in mineral research and exploration. This partnership accelerates the scientific exploration of critical and strategic minerals.
The state has notified the District Mineral Foundation (DMF) Rules, 2025, in line with the Prime Minister’s Mineral Area Welfare Scheme (PMKKKY) Guidelines-2024. The state has received contributions totalling ₹16,119 crore to date. Authorities sanctioned 1,05,653 works under the scheme, of which 74,454 works have been completed. The DMF Portal 2.0 has been implemented to ensure transparency in financial sanction, monitoring, and management.
The Khanij Online 2.0 portal, developed by the Mineral Department, has digitised the state’s mineral administration completely. This secure, multi-faceted, and user-friendly system promotes transparency and efficiency. This initiative establishes Chhattisgarh as a national model state in mining management.
In line with ‘Ease of Doing Business’ principles, the state is now allocating sand mines solely through an online system. An MoU has been signed with MSTC for this purpose. The new system eliminates human intervention, making the entire process transparent, impartial, and secure.
The Star Rating system, implemented under the Minor Mineral Rules, 2015, evaluates mines based on mining, environmental management, safety measures, and sustainable development parameters. Under this system, three mines received 5-star ratings and 32 mines received 4-star ratings, demonstrating the state’s commitment to scientific and responsible mining.
Chief Minister Vishnu Deo Sai stated that mineral wealth is not just an economic resource; it is the basis for the state’s overall development. Chhattisgarh has presented an ideal administrative model in the mining sector through integrated efforts in policy reform, digital transparency, and sustainable development. The state’s progress indicates economic strength and a sustained step towards development based on public welfare.