India mining policy

Beyond participatory symbolism, public hearings functioned as procedural checkpoints, forcing disclosure of baseline data, surfacing local environmental knowledge, creating an official record of objections, and compelling regulatory authorities to respond to deficiencies in project assessments.

India confronts a defining moment. The nation’s accelerating demand for critical minerals, the foundational materials powering defence systems, renewable energy infrastructure, and electric vehicles, has catalysed a substantial policy realignment. This shift raises consequential questions about how democratic societies navigate the tension between strategic imperatives, environmental stewardship, and the rights of affected communities. The urgency can be quantified as well; India at this point imports over 95 per cent of its lithium needs, 100 per cent of cobalt, and almost 80 per cent of rare earth elements. This dependency subsequently translates into annual foreign exchange outflows exceeding $2 billion. With the prediction that India’s electric vehicle market will reach $110 billion by 2030 and also the renewable energy capacity will reach 500 GW by 2030. This demand imperative collides directly with the procedural safeguards that have, for nearly two decades, provided communities a voice in their own environmental futures.1

In September 2025, India’s Ministry of Environment, Forest, and Climate Change issued a directive2 that represents a watershed moment in the country’s mineral governance. Mining projects involving atomic, critical, and strategic minerals may now circumvent the mandatory public consultation process that has anchored environmental clearance procedures for nearly two decades.

Understanding the policy shift

The new exemption extends to a comprehensive roster of minerals deemed essential for national security. Atomic minerals like uranium and thorium, which sustain India’s nuclear programme, now share expedited approval pathways with rare earth elements, lithium, cobalt, and allied critical materials. While these projects remain subject to technical evaluation by expert committees, affected local communities forfeit their formal recourse to voice concerns through public hearings. The consequence is stark, as local populations lose their voice in decisions that fundamentally alter their landscapes and livelihoods.

The Government’s rationale3 anchors itself firmly on national security grounds. The Ministry of Defence contends that rare earth elements are indispensable for manufacturing permanent magnets integral to radar systems, sonar equipment, precision-guided munitions, and missile guidance systems. The Department of Atomic Energy, meanwhile, argues that India’s three-stage nuclear programme requires accelerated extraction of thorium from coastal deposits and uranium reserves.

India’s pronounced reliance on foreign supplies, particularly Chinese sources, amplifies these strategic pressures. Between April and July 2025, Chinese export restrictions on rare earth minerals precipitated a supply disruption that reverberated across Indian industries. This episode vindicated longstanding government warnings: Global supplies of critical minerals remain concentrated among a limited number of nations, creating what the Ministry of Defence characterises as “huge supply risks”4 for India.

Budget 2026—2027: Mining policy acceleration

The Union Budget 2026—2027 provides fiscal support that complements the September 2025 exemption from public consultations. The Government has waived basic customs duty on capital goods used for processing critical minerals and extended exemptions for lithium-ion cell manufacturing equipment, supporting India’s domestic production of batteries and renewable energy systems. Together, these budgetary and procedural measures reflect a coordinated governmental strategy to expedite approvals and reduce import dependency. However, they operate within a framework that has removed community participation safeguards. Whether this dual acceleration will translate into responsible implementation or intensify pressures on affected communities remains uncertain. Finance Minister Nirmala Sitharaman also announced that dedicated corridors will be set up for rare earth minerals in four States — Tamil Nadu, Kerala, Odisha and Andhra Pradesh. This announcement can have major benefits if the corridors are set up as they will boost India’s production of semiconductors and other electronics, the market for which is currently dominated by China.

Where does this exemption sit in law?

The exemption has not emerged through a parliamentary enactment but through executive action under the Environment (Protection) Act, 1986, operating within the framework of the Environmental Impact Assessment Notification, 2006 (EIA Notification). The EIA Notification constitutes delegated legislation, prescribing a structured process for prior environmental clearance, of which public consultation has historically been a core component. The legal significance of the present exemption, therefore, lies not merely in its policy impact but in its placement within India’s administrative law architecture.

This raises immediate questions of legality. While the executive retains the power to amend or carve out exemptions under delegated legislation, such power is not unbounded. Any exemption must remain consistent with the objectives of the parent statute and constitutional principles. A categorical removal of public consultation for an entire class of projects invites scrutiny on whether the exemption is ultra vires the Environment (Protection) Act, 1986, arbitrary in its application, or vulnerable to constitutional challenge for diluting procedural safeguards without legislative debate.

The broader context of India’s mining industry

Mining has deep roots in India’s heritage, spanning millennia. Ancient iron working traditions flourished across the subcontinent, while southern India distinguished itself as a centre of advanced crucible steel production. The modern mining industry, however, crystallised during the British colonial period, beginning with coal-mining concessions granted at Raniganj in 1774.5

Today, India’s mining sector contributes approximately 2.2 per cent to the country’s gross value added (GVA), generating roughly Rs 3.47 lakh crores annually6. While these figures appear modest relative to agriculture or manufacturing, the sector’s strategic significance substantially transcends its economic weight. Coal India Limited (CIL) alone accounts for approximately 80 per cent of domestic coal production, sustaining the preponderance of India’s electricity generation. The country ranks as the world’s fourth-largest iron ore producer and second-largest manufacturer of steel and aluminium.7

Legislative reforms have already commenced a fundamental restructuring of the industry. The 2015 Amendment to the Mines and Minerals (Development and Regulation) Act, 19578 mandated competitive auctions for major mineral leases, terminating decades of discretionary allocation mechanisms that often bred corruption. The 2023 Amendments9 extended this trajectory further, specifically targeting 29 critical minerals for accelerated exploration and development.

What makes this exemption different

Public consultations have been mandatory under the EIA Notification10. Beyond participatory symbolism, public hearings functioned as procedural checkpoints, forcing disclosure of baseline data, surfacing local environmental knowledge, creating an official record of objections, and compelling regulatory authorities to respond to deficiencies in project assessments. The courts have repeatedly relied on such records when adjudicating environmental disputes. These proceedings serve multiple functions, such as enabling communities to comprehend potential consequences for water resources, air quality, and economic sustainability; establishing an official record of local concerns that regulatory bodies must substantively address; providing a forum where affected populations can contest methodological deficiencies or insist upon enhanced mitigation protocols.

The new exemption does not eliminate environmental review entirely. Mining companies must still commission comprehensive Environmental Impact Assessment Reports and Environmental Management Plans. Expert appraisal committees at the national level will continue to evaluate proposals rigorously. What has been removed, however, is the mechanism for community participation, the stage where fishermen, farmers, tribal communities, and local residents could formally exercise their voice in determinations bearing directly upon their circumstances.

Government officials contend that this streamlining will shorten approval timelines by months or even years. They emphasise that projects will continue to incorporate detailed socio-economic impact assessments and mitigation plans within their regulatory documentation. The key distinction, however, lies in a fundamental shift: Citizens will henceforth be excluded from direct commentary on decisions that shape their futures.

Voices of concern

Tamil Nadu Chief Minister M.K. Stalin, has formally petitioned for the withdrawal of the exemption, arguing that policy modifications of such magnitude warrant transparent parliamentary debate and meaningful engagement with State Governments. His concerns reflect deeper constitutional questions concerning federalism and the balance between Central authority and State rights11.

Environmental organisations have been sharper in their criticisms. The Centre for Science and Environment warned that the exemption “fundamentally undermines the EIA process”12 and strips communities of their democratic rights. Similar concerns echo from legal experts who note that mining projects disproportionately affect tribal and rural populations, precisely the groups most dependent on formal consultation processes to protect their interests.

The concerns are not merely procedural. Many critical mineral deposits situate themselves within ecologically vulnerable zones or upon lands ancestrally held by tribal communities. Tamil Nadu’s coastline, for instance, has extensive monazite deposits rich in thorium.13 When illegal beach-sand mining was exposed in 2013, the State banned such operations over radiation concerns and livelihood impacts on fishing communities. Local residents fear that health and safety concerns will be deprioritised in the absence of public hearings.

Tribal communities face challenges. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (Forest Rights Act) grants forest-dwelling tribal councils’ authority over resource use in their territories. While the amended rules still require compliance with this law, activists fear that rushed clearance processes will hinder genuine consultation with the indigenous peoples. These communities often view mountains and forests not merely as repositories of mineral wealth but as sacred landscapes intertwined with their cultural identity and spiritual practices.

The interaction between the EIA exemption and Forest Rights Act requirements remains doctrinally unsettled. The Forest Rights Act operates independently of EIA processes, vesting Gram Sabhas with authority over resource use in Scheduled Areas. The Supreme Court’s Niyamgiri ruling14 (2013) established Gram Sabha consent as a precondition for forest diversion affecting Scheduled Tribes, a requirement deriving from the Forest Rights Act rather than the EIA Notification. Whether the September 2025 exemption displaces these parallel consent mechanisms, or merely removes the EIA public hearing while Forest Rights Act requirements remain operative, has not been judicially clarified. This ambiguity may prove consequential. If Forest Rights Act processes remain intact, the exemption’s practical acceleration effect in tribal regions could be more limited than anticipated. Conversely, if expedited central appraisal is interpreted as substituting for community consent, the exemption’s constitutional vulnerability under Articles 14 and 21 would substantially increase.

The tension between mining and environmental protection reached India’s highest court on 13 November 2025. In a landmark judgment15 concerning the Saranda Wildlife Sanctuary, the Supreme Court ordered the Jharkhand Government to formally designate approximately 31,468 hectares of pristine Sal forest as a protected wildlife sanctuary, notwithstanding the State’s repeated attempts to reduce the protected area in accommodation of mining interests. The Bench, led by then Chief Justice B.R. Gavai, took a firm stance, noting that the State had been “taking the court for a ride” by constantly changing its position over the notification. The court emphasised that constitutional obligations under Articles 48-A and 51-A(g) require States to protect ecologically significant areas. Notably, the judgment clarified that sanctuary designation does not curtail tribal rights under the Forest Rights Act, a finding that may inform how courts eventually interpret the Forest Rights Act’s relationship with expedited mining clearances. The judgment also reaffirmed that mining activities must remain at least one kilometre from sanctuary boundaries, a prohibition the court extended to protected areas nationwide.

Constitutional fault lines

The exemption implicates multiple constitutional principles. Environmental protection has been read into Article 21 of the Constitution as an essential component of the right to life. Articles 48-A and 51-A(g) impose affirmative duties on the State and citizens to protect and improve the natural environment. The categorical exclusion of public consultation for entire classes of mining projects raises concerns under Article 14, particularly where differential treatment is accorded without project-specific justification.

Federalism concerns are also implicated. Environmental clearances operate at the intersection of Central Regulatory Authority and State control over land, forests, and local governance. Exemptions introduced through central executive action, without structured engagement with the States, risk unsettling the constitutional balance between Union authority and State autonomy.

International comparisons

How does India’s approach compare with other democracies facing similar pressures to secure critical mineral supplies?

The United States recently streamlined National Environmental Policy Act procedures for defence projects. The Pentagon expanded categorical exclusions and imposed rigorous timelines for environmental assessments. However, even expedited United States (U.S.) procedures typically retain some form of public environmental assessment or impact statement with opportunity for substantive comment, albeit compressed within abbreviated time-frames.16

The European Union’s 2025 Defence Readiness Omnibus proposal mandates fast-track permitting for defence projects, mandating decisions within 60 days. Yet, purely civilian mining projects across European Union (EU) Member States generally remain subject to standard environmental review and public consultation under EU EIA Directives.17

Countries like Canada and Australia, despite prioritising critical mineral development for supply security, continue to require meaningful public and Indigenous participation in major project decisions.

India’s categorical removal of public hearings for an entire mineral classification represents a substantially more expansive departure than comparable measures adopted across most established democracies. Whether this reflects India’s heightened strategic urgency, a distinct recalibration of competing priorities, or a contraction of environmental democratic protections remains contested. The domestic judicial landscape itself reveals similar tensions, as evidenced by the Supreme Court’s shifting jurisprudence on Aravalli mining regulation.

The Aravalli paradox: When judicial certainty becomes judicial caution

The judicial trajectory concerning Aravalli mining illustrates how environmental jurisprudence evolves through iterative recalibration rather than linear progression. On 20 November 202518, a Supreme Court Bench led by the the Chief Justice B.R. Gavai delivered what appeared to be a definitive framework for Aravalli conservation. The court adopted a committee-defined definition restricting “Aravalli Hills” to landforms with elevations of 100 metres or above from local relief, with “Aravalli Range” encompassing two or more such hills within 500 metres proximity. While the judgment prohibited new mining leases pending the preparation of a Management Plan for Sustainable Mining (MPSM) through the Indian Council of Forestry Research and Education (ICFRE), it permitted existing mining operations to continue under strict compliance with Committee recommendations. The court explicitly declined to impose a complete mining ban, invoking precedent from State of Bihar v. Pawan Kumar19 that absolute prohibitions frequently generate illegal mining and criminalisation. This calibrated approach sought to balance ecological protection with economic realities, directing comprehensive assessment before permitting new extraction activities.

Yet, within weeks, the November judgment encountered substantial scientific and environmental critique that necessitated judicial reconsideration. On 29 December 202520, a Vacation Bench led by the current Chief Justice Surya Kant and Justices J.K. Maheshwari and Augustine George Masih acknowledged “profound concern among environmentalists” and a “significant outcry” regarding potential misinterpretation of the adopted definition. The court recognised that both the Committee report and the November judgment had “omitted to expressly clarify certain critical issues”, creating “regulatory gaps that might undermine the ecological integrity of the Aravalli region”. Consequently, the Vacation Bench took the extraordinary step of placing the entire November 20 judgment in abeyance, staying all recommendations and directions pending an “exhaustive and holistic examination” by a high-powered Expert Committee of the definition’s ecological implications. The court reinstated the 2010 Forest Survey of India definition, prohibiting any new mining leases or renewals in Aravalli Hills and Ranges without prior court permission. This judicial reversal exposes a fundamental tension: Balancing implementable standards of development against the complexity of protecting a geological landscape.

The path forward

The Aravalli litigation epitomises the broader challenges confronting India’s mineral governance. The policy shift reflects genuine dilemmas facing modern nations. Strategic autonomy in critical minerals is no longer discretionary but has become imperative. Climate objectives depend on materials such as lithium for battery technology and rare earths for wind generation. Defence capabilities require domestic sources of specialised elements. Import dependence creates vulnerabilities that recent geopolitical tensions have starkly revealed.

Yet, democracy derives considerable strength from its inherent friction, the deliberate procedural obstacles that compel power to justify itself before those it affects. Public hearings may extend project timelines and increase costs, but they also catch flawed assessments, force better mitigation planning, and establish social legitimacy for contentious projects. The substantive question is not whether national security possesses material importance, but whether circumventing democratic processes ultimately advances or undermines long-term security and institutional stability of our nation.

India’s approach will likely reverberate across environmental policy frameworks throughout the developing world. Should accelerated approvals produce sustainable, conflict-free mining that genuinely advances local community welfare, the model may prove compelling. Conversely, should the framework precipitate environmental degradation, social conflict, and protracted legal contestation, the aggregate costs may substantially exceed any efficiency gains realised.

The Government asserts that expert appraisal and comprehensive documentation mandates will prevent misuse. The courts will inevitably intervene, as they have repeatedly throughout India’s contentious mining history, with the recent wildlife sanctuary determinations exemplifying this pattern. What ultimately emerges from this tension between strategic necessity and procedural rights will determine not merely India’s mineral trajectory, but fundamental questions about how democracies navigate governance during periods of strategic competition.

Conclusion

India’s decision to exempt critical mineral mining from public consultations marks a significant departure from established environmental governance frameworks. Whether history ultimately characterises this shift as pragmatic adaptation or democratic erosion will depend substantially on implementation outcomes. Can expert committees genuinely substitute for community knowledge and lived experience? Will corporations prepare rigorous impact assessments without the pressure of public scrutiny? Can tribal rights be adequately protected when the communities themselves are excluded from deliberation?

The substantive question is not whether national security and energy transition goals are legitimate, they are, but whether bypassing democratic processes ultimately strengthens or undermines institutional credibility, social stability, and long-term security. In democracies, friction is not a flaw; it is a safeguard.

These questions transcend India’s immediate context. As nations worldwide accelerate efforts to secure critical minerals for energy transitions and technological advancement, they face similar pressures to expedite approval mechanisms.


*Senior Associate, SKV Law Offices. Author can be reached at: megharanjani.chandu@skvlawoffices.com.

** Associate, SKV Law Offices. Author can be reached at: vedant.choudhary@skvlawoffices.com.

*** Law Student. Author can be reached at: ankit.chugh@skvlawoffices.com.

1. Institute for Energy Economics and Financial Analysis, India’s Hunt for Critical Minerals, available at <https://ieefa.org/sites/default/files/2024-10/India’s%20Hunt%20for%20Critical%20Minerals.pdf>.

2. Ministry of Environment, Forest and Climate Change (Impact Assessment Division), Fast Tracking of Projects Involving Mining of Critical, Strategic and Atomic Minerals-reg., OM No. IA-Z-11013/136/2025-IA-I (Issued on 8-9-2025) available at <https://parivesh.nic.in/publicdocument/UPLOAD_OM_NOTIFICATION/IA_DOCS/1002_08092025062213.pdf>.

3. Ministry of Environment, Forest and Climate Change (Impact Assessment Division), Fast Tracking of Projects Involving Mining of Critical, Strategic and Atomic Minerals-reg., OM No. IA-Z-11013/136/2025-IA-I (Issued on 8-9-2025) available at <https://parivesh.nic.in/publicdocument/UPLOAD_OM_NOTIFICATION/IA_DOCS/1002_08092025062213.pdf>.

4. Institute for Energy Economics and Financial Analysis, India’s Hunt for Critical Minerals, para 3, available at <https://ieefa.org/sites/default/files/2024-10/India’s%20Hunt%20for%20Critical%20Minerals.pdf>.

5. “Natural Resources of India”, Wikipedia, available at <https://en.wikipedia.org/wiki/Natural_resources_of_India#:∼:text=Coal%20mining%20in%20India%20started,11>.

6. “Metals & Mining Industry in India”, India Brand Equity Foundation, available at <https://www.ibef.org/industry/metals-and-mining#:∼:text=match%20at%20L390%20In%20FY25%2C,40%20billion>.

7. “Metals & Mining Industry in India”, India Brand Equity Foundation, available at <https://www.ibef.org/industry/metals-and-mining#:∼:text=match%20at%20L390%20In%20FY25%2C,40%20billion>.

8. Mines and Minerals (Development and Regulation) Amendment Act, 2015.

9. Mines and Minerals (Development and Regulation) Amendment Act, 2023.

10. Ministry of Environment and Forests, S.O. 1533(E) (Notified on 14-9-2006) available at <https://www.mczma.gov.in/sites/default/files/EIA_Notification_14_9_2006.pdf>.

11. Simrin Sirur Centre, “Centre Exempts Public Consultation for Mining Critical and Atomic Minerals”, Mongabay (25-9-2025) available at>. >.

12. “GoI Exempts Critical Mineral Mining from Public Hearings, Citing National Security”, The Frontier Manipur (12-9-2025) available at <https://thefrontiermanipur.com/goi-exempts-critical-mineral-mining-from-public-hearings-citing-national-security/>.

13. Simrin Sirur (25-9-2025) available at, “Centre Exempts Public Consultation for Mining Critical and Atomic Minerals”, Mongabay (25-9-2025) available at <https://india.mongabay.com/2025/09/centre-exempts-public-consultation-for-mining-critical-and-atomic-minerals/>.

14. Orissa Mining Corpn. Ltd. v. Ministry of Environment & Forests, (2013) 6 SCC 476 : 2013 SCC OnLine SC 364.

15. In Re: T.N. Godavarman Thirumulpad v. Union of India, 2025 SCC OnLine SC 2444.

16. ulie Strupp, “Defense Department Simplifies NEPA Reviews”, Construction Dive (2-7-2025) available at <https://www.constructiondive.com/news/defense-department-nepa-permit-reform/752135/>.

17. “New Simplification Proposal will Speed Up Defence Investments in the EU”, European Commission (17-6-2025) available at <https://commission.europa.eu/news-and-media/news/new-simplification-proposal-will-speed-defence-investments-eu-2025-06-17_en#:∼:text=%2A%20introduce%20a%C2%A0fast,as%20competition%20or%20environmental%20laws>.

18. Aravalli Hills & Ranges Definition, In re (2026) 2 SCC 299, (2026) 2 SCC 299.

19. (2022) 2 SCC 348.

20. Definition of Aravalli Hills & Ranges & Ancillary Issues, In re , 2025 SCC OnLine SC 2997.

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