India’s mining sector is governed by regulations such as the Mines and Minerals (Development and Regulation) Act (MMDR Act) and the Environment Protection Act, which aim to balance economic growth, environmental sustainability, and social responsibility. Key licenses include Reconnaissance Permits, Prospecting Licenses, and Mining Leases, with the 2015 amendment promoting mineral auctions for greater transparency.
Despite growth, the sector faces challenges like illegal mining, environmental damage, and delays in clearance processes. High royalties and taxes, along with public resistance to deforestation and pollution, contribute to project delays and increased costs.
Recent reforms, like the Mineral Laws (Amendment) Act, 2020, which opened coal mining to private players, and the Single Window Clearance System, aim to streamline approvals. Sustainable practices are being promoted to reduce environmental impacts while the sector continues to grow.
