Govt rolls out major mining reforms in 2025; J&K takes new initiatives

Ziraat Times Team Report

New Delhi — The Ministry of Mines implemented a series of wide-ranging policy and legislative reforms in 2025 aimed at modernising India’s mining ecosystem, strengthening mineral security and accelerating exploration, auction and development of mineral resources across the country.

A central reform during the year was the enactment of the Mines and Minerals (Development and Regulation) Amendment Act, 2025, which introduced structural changes to improve transparency, efficiency and investor confidence in the mining sector. The reforms also focused on supporting critical mineral supply chains, simplifying procedures and enabling faster project execution.

Key national-level reforms in the mining sector

According to the Ministry of Mines, the major policy measures undertaken in 2025 include:
Expansion and renaming of the National Mineral Exploration Trust (NMET) as the National Mineral Exploration and Development Trust (NMEDT), with enhanced funding support to strengthen exploration activities.
Streamlining of mineral auction processes through clearly defined timelines to ensure predictability and faster allocation of mineral blocks.

Removal of restrictions on the sale of minerals from captive mines, enabling greater operational flexibility.

Reclassification of select minerals as major minerals to improve regulatory clarity.
Notification of royalty rates for critical minerals, facilitating their commercial development.

Promotion of mineral exchanges to improve transparency and price discovery.

Implementation of offshore mining reforms to unlock India’s offshore mineral potential.
These measures are aimed at improving ease of doing business, encouraging private investment, and securing long-term availability of critical and strategic minerals.

Progress in Jammu & Kashmir: exploration and development initiatives

The Ministry also highlighted several important developments in Jammu & Kashmir, reflecting increased focus on mineral exploration and geotechnical assessments in the Union Territory.

Lignite exploration in Kupwara

Mineral Exploration and Consultancy Limited (MECL) has initiated lignite exploration at the Nichahom Block in Kupwara, marking a step towards diversifying the region’s energy resource base and assessing its domestic fuel potential.

First-ever limestone block auction

MECL has also provided technical consultancy support for Jammu & Kashmir’s first-ever auction of limestone blocks. A total of seven limestone blocks were successfully launched, highlighting the Union Territory’s emerging potential in the cement and construction raw materials sector.

Critical mineral exploration

The Geological Survey of India (GSI) has undertaken exploration for Rare Earth Elements (REEs) in Jammu & Kashmir, recognising the strategic importance of critical minerals for clean energy, electronics and advanced manufacturing.

Seismic hazard and geotechnical studies
As part of national efforts to strengthen infrastructure safety, GSI carried out seismic microzonation studies in Udaipur (Tripura) and Ongole (Andhra Pradesh), contributing to risk assessment in seismically sensitive regions, including the Himalayan belt.

In Jammu & Kashmir specifically, GSI conducted geotechnical investigations for hydropower, road, rail and water resource projects, including major tunnel works such as Chenani–Nashri and Vailoo. These studies support safer design and execution of large infrastructure projects in difficult terrain.
Strengthening mineral security and infrastructure resilience.