Sustainable Mining and Environmental Compliance in India
- Aditi Srivastava

- Dec 8, 2025
- 4 min read

Mining plays an essential role in India’s economic development. With abundant reserves of coal, iron ore, bauxite, limestone, and critical minerals, the mining sector fuels industries such as power, steel, infrastructure, and manufacturing. However, mining also carries significant environmental and social consequences like deforestation, land degradation, displacement of communities, groundwater contamination, and biodiversity loss. Recognizing these challenges, India has built a comprehensive legal framework to ensure that mining activities operate responsibly.
This article examines the interplay between mining operations and environmental compliance in India, exploring the statutory framework, regulatory challenges, recent reforms, and the road toward sustainable mining.
The Need for Sustainable Mining
As India pursues rapid industrial growth, the demand for minerals has increased sharply. This surge brings with it several environmental concerns:
Destruction of forest cover for open-cast mining
Pollution of rivers and groundwater with toxic effluents
Air pollution due to dust and emissions
Soil erosion and loss of agricultural land
Disturbance of tribal habitats and wildlife corridors
Without strong environmental safeguards, mining can cause irreversible ecological damage. Sustainable mining therefore seeks to balance mineral extraction with long-term environmental protection, social well-being, and economic viability.
Key Legal Framework Governing Mining and Environment
India’s mining sector is primarily regulated under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). However, environmental compliance is governed by additional legislation, creating a multi-layered regulatory structure.
A. The MMDR Act, 1957
The MMDR Act sets out the licensing and regulatory regime for mineral exploration and mining. Recent amendments (2015, 2021) introduced auction-based allocation, transparency measures, and mechanisms to curb illegal mining. However, obtaining a mining lease under the Act requires securing several environmental clearances.
B. Environment (Protection) Act, 1986 (EPA)
The EPA empowers the central government to regulate activities that may harm the environment. Under this Act, mining projects must comply with environmental standards and submit regular monitoring reports.
C. Environmental Impact Assessment (EIA) Notification, 2006
One of the most critical requirements for mining is obtaining Environmental Clearance (EC) through the EIA process. The process includes:
Baseline environmental studies
Public consultation
Environmental Management Plans
Appraisal by Expert Committees
For large mining projects, this step is mandatory before operations can begin.
D. Forest (Conservation) Act, 1980
If the mining project involves forest land, Forest Clearance (FC) is required, involving:
Approval from the Ministry of Environment, Forest and Climate Change (MoEFCC)
Consent of state authorities
Rehabilitation and afforestation obligations
E. Water and Air Pollution Laws
Mining projects must also comply with:
Water (Prevention and Control of Pollution) Act, 1974
Air (Prevention and Control of Pollution) Act, 1981
Consent to Establish (CTE) and Consent to Operate (CTO) must be obtained from State Pollution Control Boards.
F. Mining Plan and Progressive Mine Closure Plan (PMCP)
The Indian Bureau of Mines (IBM) mandates preparation of:
A Mining Plan outlining extraction methods
A PMCP detailing post-mining land restoration
These plans ensure scientific extraction and rehabilitation.
Environmental Concerns in Indian Mining
Despite strong legal frameworks, several environmental issues persist:
A. Illegal and Unregulated Mining
Illegal mining of sand, coal, iron ore, and minor minerals continues in many regions. It causes severe ecological damage due to uncontrolled extraction and lack of reclamation measures.
B. Delayed Compliance and Weak Enforcement
Even legally operating mines often delay reporting, fail to follow safety norms, or do not invest adequately in environmental remediation due to weak enforcement and limited monitoring staff.
C. Coal Mining and Climate Impact
Coal mining contributes to air pollution, methane emissions, and landscape destruction. As India works toward clean energy transitions, coal mining practices face increasing scrutiny.
D. Impact on Tribal Communities
Many mineral-rich regions overlap with tribal lands. Mining-induced displacement and degradation of traditional livelihoods create social conflicts, especially in forested states like Odisha, Chhattisgarh, and Jharkhand.
Recent Reforms Toward Sustainable Mining
India has introduced several reforms to improve sustainability and transparency in the mining sector.
A. Compensatory Afforestation Fund (CAF) Act, 2016
This Act ensures funds collected for diverting forest land for mining are used strictly for afforestation and environmental conservation.
B. District Mineral Foundation (DMF)
DMFs were established to ensure that mining revenues benefit affected regions. Funds are used for healthcare, drinking water, education, environmental restoration, and livelihood support.
C. Star Rating of Mines
The Ministry of Mines introduced a Star Rating System to evaluate mines based on:
Environmental impact
Scientific mining practices
Reclamation and rehabilitation efforts
Community engagement
Poorly rated mines face penalties or closure, incentivizing better compliance.
D. Mine Digitalization and Monitoring
Technologies like drone surveillance, GPS tracking, and mandatory end-to-end mineral transport tracking systems help detect illegal mining and improve transparency.
Principles of Sustainable Mining
To ensure long-term ecological balance, mining operations must adopt certain core principles:
A. Scientific Extraction
Using modern technology to minimize waste, reduce land degradation, and ensure resource efficiency.
B. Rehabilitation and Mine Closure
Post-mining land restoration like reforestation, filling of pits, soil stabilization, is essential to prevent long-term ecological damage.
C. Community Participation
Mining companies must engage local communities transparently, offer fair compensation, and support livelihood development.
D. Biodiversity Conservation
Sensitive areas, wildlife corridors, and forest ecosystems must be protected through exclusion zones and ecological assessments.
E. Water and Pollution Management
Adequate treatment systems, dust control mechanisms, and proper waste disposal reduce environmental risks.
Challenges Ahead
Even with a strong legal framework, several challenges need attention:
Coordination gaps between central and state agencies
Slow approval processes, causing delays for investors while still failing to prevent violations
Limited manpower for on-ground monitoring
Inadequate reclamation efforts by many miners
Pressure from local politics that sometimes enables illegal operations
Addressing these issues requires not only legal reforms but also institutional strengthening.
The Way Forward
For India to achieve truly sustainable mining, the following steps are essential:
Strengthening monitoring mechanisms through digital tools and third-party audits
Clearer guidelines on ecological restoration and stricter penalties for non-compliance
Prioritizing critical and strategic minerals with responsible extraction strategies
Greater transparency through public disclosure of compliance reports
Building local capacity by training district officials and community leaders
Accelerating clean energy transitions, reducing dependence on environmentally harmful minerals
Conclusion
Mining remains critical to India’s economic aspirations, but it must not come at the expense of ecological integrity or community welfare. With thoughtful regulation, scientific extraction methods, and a focus on environmental compliance, India can build a mining sector that is both productive and sustainable.
As the world moves toward greener economies and responsible resource use, India’s mining laws must continue evolving, balancing economic development with environmental stewardship, and ensuring that mineral wealth contributes to long-term, inclusive growth.




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