Major Minerals and Mineral-Rich States of India

Introduction

India has a wide and uneven distribution of metallic and non-metallic minerals. Their administration, taxation and exploitation are governed by the Constitution, Parliament and state-level controls.

Major minerals are concentrated in a few states, while minor minerals remain largely under state administrative control. This makes mineral policy an important topic for Prelims, especially for constitutional provisions, state-wise production and recent legal changes.

Distribution of Major Minerals and State Shares

Seven states account for 97.04% of the total value of major mineral production in India. Odisha is the leading producer, followed by Chhattisgarh and Rajasthan.

Odisha has a dominant position in several minerals, producing 74.2% of India’s bauxite and 100% of chromite. Rajasthan leads the country in limestone production. These are major minerals, which are different from minor minerals that are generally administered by states.

Constitutional Framework

The Constitution divides mineral-related powers between the Union and the States under the Seventh Schedule.

• Union List, Entry 54: Parliament can regulate mines and mineral development to the extent declared by law to be expedient in the public interest.
• State List, Entry 23: States can regulate mines, subject to the Union power under Entry 54.
• State List, Entry 49: States may tax lands and buildings.
• State List, Entry 50: States may tax mineral rights, subject to limitations imposed by Parliament.

On July 25, 2024, a nine-judge Constitution Bench of the Supreme Court delivered an 8:1 judgment in Mineral Area Development Authority (MADA) v. Steel Authority of India (SAIL). The Court held that mineral royalty is a contractual payment, not a tax, and affirmed that States have legislative competence to tax mineral rights and mineral-bearing lands.

MMDR Amendment Act, 2026

Parliament passed the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2026 to create a uniform national mineral taxation framework. It received Presidential assent on August 17, 2026, after passage in the Lok Sabha on August 12 and the Rajya Sabha on August 13.

• Section 2 amendment: Brings “mineral-bearing lands” under Union regulatory control by amending Section 2 of the 1957 Act.
• Section 9D: Bars States from imposing tax, cess or other levies on mineral rights or mineral-bearing lands unless permitted by the Central Government.
• Retrospective relief: Invalidates unpaid or unrecovered State levies assessed before the amendment; paid taxes are not refunded.
• Minor minerals: Nearly 50 minor minerals, including sand, gravel, clay and granite, remain under State administrative control and are unaffected.

Critical and Strategic Mineral Auctions

The Ministry of Mines has accelerated auctions of critical and strategic minerals to strengthen industrial supply chains.

• FY 2025–26 auctions: India auctioned a record 212 blocks, including 22 critical and strategic mineral blocks.
• Eighth Tranche: Launched on July 15, 2026, offering 20 critical mineral blocks across nine states.
• Minerals offered: Molybdenum, Graphite, Glauconite, Rare Earth Elements, Vanadium, Gallium, Titanium, Tungsten, Phosphorite, Potash, Lithium, Cesium and Rubidium.
• Overall performance: As of July 2026, 56 out of 88 unique critical mineral blocks offered had been successfully auctioned.
• Geographical expansion: The Seventh Tranche in March 2026 was the first time critical mineral blocks were auctioned in Gujarat, Uttarakhand and Telangana.

Key Prelims Takeaways

• Odisha produces 74.2% of India’s bauxite and 100% of chromite.
• Rajasthan leads India in limestone production.
• Seven states account for 97.04% of India’s major mineral production value.
• Union List Entry 54 gives Parliament power to regulate mines and mineral development in the public interest.
• State List Entry 50 permits States to tax mineral rights, subject to parliamentary limitations.
• MADA v. SAIL (2024) held that royalty is a contractual payment, not a tax.
• MMDR Amendment Act, 2026 restricts State-level levies on mineral rights and mineral-bearing lands through Section 9D.