Orders (Government of India)

The Ministry of Mines issued an order on June 24, 2022 (F.No-7/17/2021-M.IV), directing States to amend District Mineral Foundation (DMF) rules in line with revised Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines. Key focus areas include preparing 5-year perspective plans, enhancing transparency, and prioritizing high-priority sectors for sustainable mining-affected area development. [1, 2, 3, 4]

Key Aspects of the 24.06.2022 Order:

Mandatory Planning: DMFs are required to prepare a 5-year Perspective Plan for the development of mining-affected areas, ensuring systemic utilization of funds.
Effective Utilization: Focus on improving the efficiency of DMF fund usage, ensuring funds are directed toward high-priority sectors such as drinking water, health, and education.
Revisiting PMKKKY Guidelines: The order initiated the revision of PMKKKY guidelines to ensure more effective implementation and impact.

The revised guidelines, further updated in 2024, require that at least 70% of funds be spent on high-priority areas such as drinking water, health, and education.The The Ministry of Mines issued an order on June 24, 2022 (F.No-7/17/2021-M.IV), directing States to amend District Mineral Foundation (DMF) rules in line with revised Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines. Key focus areas include preparing 5-year perspective plans, enhancing transparency, and prioritizing high-priority sectors for sustainable mining-affected area development. [1, 2, 3, 4]

Key Aspects of the 24.06.2022 Order:

Mandatory Planning: DMFs are required to prepare a 5-year Perspective Plan for the development of mining-affected areas, ensuring systemic utilization of funds.
Effective Utilization: Focus on improving the efficiency of DMF fund usage, ensuring funds are directed toward high-priority sectors such as drinking water, health, and education.
Revisiting PMKKKY Guidelines: The order initiated the revision of PMKKKY guidelines to ensure more effective implementation and impact.

The revised guidelines, further updated in 2024, require that at least 70% of funds be spent on high-priority areas such as drinking water, health, and education on June 24, 2022 (F.No-7/17/2021-M.IV), directing States to amend District Mineral Foundation (DMF) rules in line with revised Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines. Key focus areas include preparing 5-year perspective plans, enhancing transparency, and prioritizing high-priority sectors for sustainable mining-affected area development. [1, 2, 3, 4]

Key Aspects of the 24.06.2022 Order:

Mandatory Planning: DMFs are required to prepare a 5-year Perspective Plan for the development of mining-affected areas, ensuring systemic utilization of funds.
Effective Utilization: Focus on improving the efficiency of DMF fund usage, ensuring funds are directed toward high-priority sectors such as drinking water, health, and education.
Revisiting PMKKKY Guidelines: The order initiated the revision of PMKKKY guidelines to ensure more effective implementation and impact.

The revised guidelines, further updated in 2024, require that at least 70% of funds be spent on high-priority areas such as drinking water, health, and education.

On May 1, 2025, the Ministry of Mines issued an order under Section 20A of the MMDR Act to transition existing mining leases for Barytes, Felspar (Feldspar), Mica, and Quartz from “minor mineral” to “major mineral” status. This order provides a smooth transition for existing leaseholders, including exemption from specific reporting for FY 2024-25 and adjusted timelines for regulatory compliance.

Key Details of the Order and Transition:

Average Sale Price: The IBM will start publishing the Average Sale Price for these minerals starting October 2025.

Mineral Reclassification: The order regulates the mining of Barytes, Felspar, Mica, and Quartz under the MMDR Act as major minerals rather than under state-specific minor mineral rules.

Transition Relief: Existing lessees are allowed a transition period, with a requirement to start submitting returns to the Indian Bureau of Mines (IBM) from October 2025.

Exemptions: Mining leases for these minerals are exempt from filing online self-assessment star rating reports for FY 2024-25, but must maintain a three-star rating from FY 2028-29 onwards.

Penalty Waiver: No penalties will be imposed on existing mines of these four minerals until March 31, 2026, for contravention of MCR 2016 and MCDR 2017 rules, excluding Rule 45.

If Application has been made for grant of Mineral Concession but LETTER OF INTENT has not been issued by State Govt before 20.02.2025 or omission from Minor mineral category, application will be LAPSED.

If State Govt has issued LETTER OF INTENT before 20.02.2025 and LOI was also valid on 20.02.2025, Mining Lease will be granted and executed as per State Minor Mineral Concessions Rules within 2 years from the date of issue of this order i.e.24.09.2025.

If AUCTION Process has been concluded and preferred bidder has been selected before 20.02.2025 but LETTER OF INTENT has not been issued, Mining Lease will be granted and executed as per State Minor Mineral Concessions Rules within 2 years from the date of issue of this order i.e.24.09.2025.

After grant and execution of Mining lease of these minerals, the provision of MMDR Act-1957/ (2015/2025) and Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 shall be applicable on such leases.