NEW DELHI: The Centre on Tuesday classified limestone entirely as a major mineral through a gazette notification issued on October 10, removing the earlier distinction based on end use. This means that leaseholders of limestone can now sell or utilize it for any purpose without regulatory restrictions.
Previously, limestone was classified as a minor mineral only when used in kilns to manufacture lime for building materials, while for all other uses—such as in cement production, steel, chemicals, fertilizers, and other industries—it was categorized as a major mineral.
The order also grants a temporary exemption from submitting digital aerial imagery of the lease area until July 1, 2027, and from penalties for non-filing of monthly and annual returns under Rule 45 of the Mineral Conservation and Development Rules (MCDR), 2017, until March 31, 2026. However, lessees must continue submitting returns to their respective state governments as per the existing rules, Ministry of Mines said.
According to this long-awaited reform fulfills the demand of hundreds of limestone leaseholders who had been seeking the freedom to sell limestone to the cement industry and other sectors without end-use-based constraints.
“This removal of limestone from list of minor mineral has fulfilled a long-standing demand of hundreds of limestone minor mineral leaseholders to enable them to freely sell to cement industries as well as to the other industries. This will increase income as well as employment in rural areas. Further, increase in availability of limestone from minor mineral leases to cement industry will enable quick expansion of cement manufacturing capacity in the country. This measure will give boost to construction activities in the country leading to employment generation and economic growth,” said the ministry.
The decision follows a recommendation from an Inter-Ministerial Committee led by NITI Aayog. The committee noted that the use of limestone in cement and industrial applications has now far exceeded its use in traditional lime kilns, making the old classification outdated.
To ensure a smooth regulatory transition, the ministry issued an order on October 13, under Section 20A of the Mines and Minerals (Development and Regulation) Act (MMDR Act), allowing the conversion of existing minor mineral limestone leases into major mineral leases. Under this order, existing leaseholders are required to register with the Indian Bureau of Mines (IBM) by March 31, 2026. Until that date, they may continue to pay royalty at the rates set by their respective state governments. Mining plans that were approved by state governments will remain valid until March 31, 2027, and leaseholders are expected to obtain IBM approval for their mining plans during this period.
The Ministry of Mines issued notification, classifying Limestone as a major mineral completely. Earlier limestone was classified as minor mineral as well as major mineral depending upon the end use. ‘Limestone used in kilns for manufacture of lime used as building material’ had been notified as minor mineral. Otherwise, it was a major mineral when used for any other purpose like production of cement, chemicals, sugar, fertilizer, steel, etc.
The Ministry of Mines vide gazette notification dated 10th October, 2025 has removed above distinction based on the end use by deleting ‘Limestone used in kilns for manufacture of lime used as building material’ from the category of minor minerals. Further, to ensure ease of doing business, the Ministry has issued an order dated 13th October, 2025 under section 20A of the MMDR Act to facilitate smooth regulatory transition of existing minor mineral leases of limestone to major mineral lease.
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 based on artificial regulatory distinction of minor or major mineral. The existing minor mineral leases of limestone will continue to operate as major mineral leases without any disruption.
For smooth transition of the existing minor mineral mining leases to major mineral category, the Ministry of Mines issued an order dated 13th October, 2025 under section 20A. Some of the provisions are as follows:
(i) The existing lease holders of minor mineral limestone leases are allowed time till 31st March, 2026 to register with IBM and they may pay royalty at the existing rates specified by the respective State Governments up to 31st March, 2026.
(ii) Continuation of existing mining plans approved by the respective State Governments for such leases till 31st March, 2027 and seeking approval of IBM for mining plan in the meanwhile.
(iii) Exemption from filing digital aerial images of mining lease area till 1st July, 2027 and exemption from filing of online self-assessment report as per the star rating template till 1st July, 2027.
(iv) Exemption from penalty for non-filing of monthly and annual returns under Rule 45 of the MCDR, 2017 to the Indian Bureau of Mines till 31st March, 2026, subject to the condition that the lessees shall continue to submit their returns to the State Governments as per the existing provisions.
The order dated 13th October, 2025 also provides enabling provision with respect to pending applications for grant of mineral concession in respect of Limestone as a minor mineral. In case where the State Government had issued letter of intent for grant of a mineral concession before 10th October, 2025 or where the auction process for grant of mineral concession has been concluded and preferred bidder has been selected before 10th October, 2025, the mining lease shall be granted and executed in accordance with the rules made by the State Government in respect of minor minerals within a period of two years from the date of issue of this order. The applications on which the State Government has not issued Letter of Intent (LOI) for grant of mineral concession before 10th October, 2025 shall lapse.
This removal of limestone from list of minor mineral has fulfilled a long-standing demand of hundreds of limestone minor mineral leaseholders to enable them to freely sell to cement industries as well as to the other industries. This will increase income as well as employment in rural areas. Further, increase in availability of limestone from minor mineral leases to cement industry will enable quick expansion of cement manufacturing capacity in the country. This measure will give boost to construction activities in the country leading to employment generation and economic growth.
