India's mineral imports reached Rs 10.12 lakh crore in FY26, while only 105 auctioned blocks became operational. The production gap highlights the challenge of meeting domestic demand and reducing import dependence.Boosting domestic mining vital to reduce import reliance.
India's mineral imports stood at Rs 10.12 lakh crore in FY26, highlighting the scale of domestic demand that could potentially be met through higher local production, even as the government seeks to improve regulatory predictability in the mining sector through amendments to the mining law.According to government data, India’s mineral imports reached Rs 10.12 lakh crore in FY26. The development comes as the Mines and Minerals (Development and Regulation) Amendment Act, 2026, seeks to establish a common framework for state levies on mineral rights and mineral-bearing land.Despite more than 720 mineral blocks being auctioned since 2015, only 105 have become operational, pointing to a gap between the allocation of mining assets and their actual production.STATES EARNED RS 7.67 LAKH CRORE FROM MINERALSMineral revenue has become an important source of state finances.
States received Rs 7.67 lakh crore from minerals between FY15 and FY26, with annual receipts rising to Rs 1.14 lakh crore. The figures underline the importance of the mining sector to state revenues as the government seeks to improve the regulatory framework governing mineral resources.The Mines and Minerals (Development and Regulation) Act, 1957, is India's principal law governing the exploration, mining and development of mineral resources.
It sets the framework for mining leases, mineral auctions, royalties and the regulation of major minerals, while giving states an important role in granting mining leases and collecting revenue. The amendment was passed during Parliament's Monsoon Session and came into force on August 22, 2026.
It provides a common reference framework for state levies on mineral rights and mineral-bearing land, defines mineral-bearing land and inserts Section 9D into the MMDR Act, 1957.Under the amended law, state levies will be governed by conditions prescribed by the Centre. Existing payments, including royalty, auction premium, District Mineral Foundation (DMF) contributions and the National Mineral Exploration and Development Trust levy, will continue.ONLY 105 AUCTIONED BLOCKS OPERATIONALSince the transparent auction regime began in 2015, more than 720 mineral blocks have been auctioned.
However, only 105 are operational.Around 100 operational auctioned mines generated approximately Rs 96,000 crore in premium. The gap between the number of blocks auctioned and those brought into production highlights the challenge of converting mining allocations into actual mineral supply.Odisha has operationalised 35 of its 79 auctioned blocks, the highest number among states.
Another 44 blocks remain in the pipeline.The mining sector also supports local development through 656 District Mineral Foundations across the country.Experts cited by Moneycontrol said greater regulatory predictability could support investment planning. However, translating auctions into production remains critical to expanding domestic mineral supply and reducing dependence on imports.With mineral imports touching Rs 10.12 lakh crore in FY26, increasing domestic production could help address the gap between demand and local supply.
The pace at which auctioned blocks become operational will remain an important factor in determining how much of that demand can be met within the country.- Ends