Law Notify, January 15, 2026 : Chhattisgarh has emerged as one of India’s leading mineral-producing states, with steady growth in revenue, expanded exploration of critical minerals, and a strong focus on transparency and local livelihoods. This was stated by Secretary, Mineral Resources Department, P. Dayanand, during a press briefing on the state’s mining roadmap and recent achievements.
He said the state is home to more than 28 types of minerals found across different regions. The government has systematically prepared mineral blocks for exploration and mining, making them available through auctions and other approved mechanisms. As a result, mineral revenue has seen a significant rise over the past two years.
Role of CMDC and Tribal Livelihoods
The Chhattisgarh Mineral Development Corporation (CMDC), established in 2001, plays a central role in exploration, mining, and marketing of minerals. Its operations span mining and marketing contracts, MDO models, joint ventures, and exploration activities.
At present, CMDC is engaged in mining, marketing, or exploration of nine minerals, including tin, bauxite, iron ore, copper, diamond, manganese, corundum, dolomite, and coal.
A key highlight has been tin procurement from tribal communities in Bastar. Tin ore prices paid to tribal collectors have increased to ₹1,926 per kg, nearly three times the earlier rate. Online procurement and real-time payments are now in practice, and a dedicated TIN – Tribal Incentive for Natural Resources portal is being developed to ensure direct digital payments.
Focus on Critical Minerals
Dayanand said CMDC, in collaboration with MOIL, is carrying out exploration for manganese and graphite in Balrampur district, with encouraging results. A memorandum of understanding has also been signed between CMDC and Coal India Limited for joint exploration and mining of critical minerals. This partnership goes beyond mining and includes mineral processing, technical cooperation, and skill development for youth.
Chhattisgarh has also become the first state in India to auction a lithium mine. The Centre has auctioned lithium and rare mineral blocks in Korba district, a move expected to create new employment opportunities and strengthen India’s critical mineral supply chain.
Exploration projects for lithium, niobium, tantalum, and rare earth elements have also been approved in Sukma and Bastar districts through notified private exploration agencies under the NMET framework.
Transparent Auctions and Revenue Gains
Under the state’s transparent, technology-enabled auction process through MSTC, CMDC has achieved record-high sale prices for iron ore while ensuring competitive mining rates. From the Ari Dongri iron ore mine alone, the state earned around ₹28.65 crore in revenue in the last financial year, while CMDC posted a net profit of nearly ₹24 crore.
CSR expenditure from 2021 to 2025 has crossed ₹1.10 crore, with additional works approved. The mine currently provides direct and indirect employment to over 200 people, and efforts are underway to raise production capacity from 5 lakh tonnes to 20 lakh tonnes annually.
In Surguja district, five CMDC-operated mines have generated over ₹11 crore for the state exchequer and more than ₹8 crore for CMDC between FY 2023–24 and December 2025. Auctions for five bauxite mines are currently in progress.
Major Joint Ventures and New Projects
The CMDC–NMDC Limited joint venture is set to begin mining operations at Bailadila Deposit-4 and Deposit-13, with production expected to start in 2026. At peak capacity, these projects are projected to generate nearly ₹7,000 crore for the state and ₹3,000 crore for CMDC, along with significant employment opportunities.
Diamond exploration is also progressing in Mahasamund district, where kimberlite indicators have been found and drilling is underway to confirm deposits.
After years of delay, the Kerwa coal project has moved forward, with an MDO selected through transparent auction at a premium of 15.85 percent. At full production, the project is expected to generate around ₹150 crore in state revenue.
Institutional Reforms and DMF Impact
The state has aligned its District Mineral Foundation (DMF) rules with the Pradhan Mantri Khanij Kalyan Yojana Guidelines 2024. Since inception, DMF contributions of over ₹16,700 crore have funded more than 1.07 lakh development works in mining-affected areas. A new DMF Portal 2.0 has been launched to strengthen monitoring, financial control, and accountability.
Road Ahead
Future plans include expansion of iron ore and bauxite production, scaling up dolomite mining, extraction of critical minerals from tin and aluminium slag, and new exploration projects through MSTC. CMDC also plans to diversify into mining-related services such as exploration support, drone surveys, mine planning, and mine rehabilitation.
Dayanand said these initiatives reflect the state government’s commitment to inclusive growth, transparency, and self-reliance in minerals, positioning Chhattisgarh as a key contributor to India’s vision of a developed economy by 2047.
