CG Government planning to establish State Mineral Exploration Trust

*Mineral Revenue of ₹11,581 Crore Earned from April to February in FY 2024-25

Raipur (Team Newsbuddy): Under the leadership of Chief Minister Vishnu Deo Sai, Chhattisgarh government has set new benchmarks in economic and industrial development through a transparent mining policy, e-auction, digital surveillance, and environmentally sensitive mining strategies. The structured excavation of mineral resources has led to a historic increase in mineral revenue. Compared to the state’s formation, mineral revenue has grown 30 times, reaching ₹13,000 crore in 2023-24, while ₹11,581 crore has already been earned in the first 11 months of FY 2024-25. This remarkable growth is attributed to transparent mining policies and effective governance. So far, 44 mineral blocks have been successfully e-auctioned, including 14 limestone, 9 iron ore, 11 bauxite, 3 gold, 2 nickel-chromium, 2 graphite, 2 glauconite, and 1 lithium block.

Successful Auction of 10 Critical and Deep-Seated Mineral Blocks

Recognizing the strategic significance of critical minerals, the Government of India launched the National Critical Minerals Mission in January 2025. In alignment with this, the state government has prioritized exploration projects, with 31 out of 56 ongoing projects focused on critical and deep-seated minerals. So far, 10 such blocks have been auctioned, including 1 lithium, 3 gold, 2 nickel-chromium, 2 graphite, and 2 glauconite blocks. India’s first lithium block auction was successfully conducted by the central government, allotting the Katghora lithium block in Korba district to South Mykey Mining Company at a 76% premium. Further lithium exploration is underway in Sukma and Korba districts, with promising reserves.

Bailadila Iron Ore: A Pillar of India’s Mining Industry

Bailadila is one of India’s largest iron ore reserves, with ongoing e-auctions for three new iron ore blocks set to conclude by March 2025. The auction process for the Hahaladdi iron ore block in Kanker district is also in its final stage.

Environmental Sustainability and Transparent Monitoring

The government has implemented several initiatives to ensure environmentally balanced and scientifically driven mining operations. Satellite imagery and mining surveillance systems are actively monitoring illegal mining. Systematic and scientific methods are being promoted in minor mineral quarries, while environmental conservation remains a priority. The state has also introduced a ‘star rating’ system to incentivize leaseholders adopting best practices.

Investing Mineral Revenue in Social Development and Infrastructure

A significant portion of mineral revenue is being reinvested in social development. The District Mineral Fund Trust has received ₹1,673 crore in FY 2024-25, funding 9,362 projects focused on education, healthcare, roads, drinking water, and skill development, significantly improving living standards in mining-affected areas.

Expanding Mineral Exploration and New Projects

The state government has initiated exploration in 13 mineral projects, including limestone, bauxite, iron ore, and graphite. Initial surveys estimate reserves of 283 million tonnes of limestone, 67 million tonnes of iron ore, and 3 lakh tonnes of bauxite. The exploration of gold, graphite, and glauconite is also underway. A proposal has been sent to the Department of Atomic Energy for uranium exploration in Jajawal, Surajpur district. Coal Bed Methane exploration licenses have been granted to Vedanta Ltd. and Oilmax in Koriya district, while Manganese Ore India Ltd. (MOIL) has identified manganese deposits in Balrampur.

To streamline exploration activities, the central government has established the National Mineral Exploration Trust. The state government is now working on a similar plan to set up a State Mineral Exploration Trust to systematically develop and explore minor minerals.

Chhattisgarh is one of India’s richest states in natural resources, boasting 28 types of minerals, including coal, iron ore, limestone, bauxite, gold, nickel, chromium, and platinum group elements. Under the leadership of Chief Minister Vishnu Deo Sai, the state’s transparent policies, sustainable strategies, and efficient administration are positioning Chhattisgarh as a leading industrial and economic hub. Leveraging its vast mineral wealth, the state is not only achieving economic strength but also advancing towards sustainable and green development. In the coming years, Chhattisgarh will further solidify its identity as India’s premier mining hub through its strategic initiatives and resource management.