§1How big it is

§2Ways to get started

  • Stone crusher / M-sand unit (state minor-mineral lease)
  • Mining equipment hire and maintenance
  • Ore transport and logistics
  • Exploration and drilling services sub-contractor
  • DMF-funded local works and services in mining districts

See the Business Encyclopedia

§3Hubs and clusters

    §4Licences and registration

    1. Mining lease or composite licence won by auction (major minerals) or state minor-mineral lease/permit
    2. Mining plan approved by IBM (major) or state (minor)
    3. Environmental clearance (EIA Notification 2006)
    4. Forest clearance where forest land is involved
    5. DGMS notices and permissions for mine operation
    6. Explosives licence (PESO) if blasting
    7. Udyam Registration (MSME) - free, online, PAN + Aadhaar based
    8. GST registration (mandatory above turnover threshold or for inter-state supply)
    9. Shops & Establishments registration or Factory Licence (Factories Act) depending on set-up
    10. State Pollution Control Board Consent to Establish / Operate per CPCB 2025 Red/Orange/Green/White/Blue category (White exempt)
    11. IEC - Importer Exporter Code from DGFT (only if importing or exporting)

    §5Regulators

    • Ministry of Mines
    • Indian Bureau of Mines (mining plans, returns)
    • State Department of Geology and Mining (leases, minor minerals)
    • Directorate General of Mines Safety (DGMS)
    • MoEFCC / State EIA Authority (environmental clearance)

    §6Government help

    • National Critical Mineral Mission (Ministry of Mines)
    • National Mineral Exploration and Development Trust funding for exploration
    • District Mineral Foundation (PMKKKY) spending in mining-affected districts
    • Cross-sector schemes: Udyam-linked MSME benefits, PMEGP, CGTMSE credit guarantee, Stand-Up India, Startup India (DPIIT recognition), RoDTEP / duty drawback and Export Promotion Mission for exporters

    All schemes

    §7For exports

    • CAPEXIL (minerals and stone)
    • DGFT

    §8Pros and cons

    Merits

    • Auction pace is at a record high, creating demand for exploration, equipment and services [PIB Mines YER 2025]
    • Critical minerals push opens new service niches
    • Holding-company net worth now counts for auction eligibility [PIB Mines YER 2025]

    Demerits

    • Long approval chain (auction, mining plan, EC, forest, DGMS) before production
    • Heavy penalties for delayed operationalisation under amended Auction Rules [PIB Mines YER 2025]
    • Minor-mineral rules and royalty differ by state
    • High safety, environmental and community-relations risk

    Sources

    1. PIB: Year End Review 2025 - Ministry of Mines (Dec 2025)
    2. Ministry of Mines
    3. Indian Bureau of Mines