Parliamentary panel urges priority clearances for critical mineral projects amid delays
By Axel Miller | 18 Dec 2025
A parliamentary standing committee has flagged persistent delays in operationalizing auctioned mineral blocks, warning that bureaucratic bottlenecks are undermining India’s push for energy security and industrial self-reliance.
In its report titled “Self-Reliance in Minerals and Metals,” tabled on Wednesday, the Standing Committee on Coal, Mines, and Steel urged the government to establish an inter-ministerial task force to monitor post-auction progress. The panel specifically called for “priority clearance” status for critical mineral projects essential to the electric vehicle (EV), defense, and renewable energy sectors.
Execution gap widens
The committee noted a troubling lag between the successful auction of a mine and the actual commencement of production. Despite a decade of policy reforms—including the auction of 486 mineral blocks since 2015—regulatory hurdles remain entrenched.
Key pain points include lengthy environmental approvals, mandatory forest clearances even for preliminary exploration, and inadequate geological data. These friction points have left investors holding assets that cannot be monetized for years, stalling the flow of raw materials to downstream industries.
Carrot and stick approach
To bridge the execution gap, the panel recommended a structured penalty system for developers who fail to meet production timelines, coupled with financial incentives for those who accelerate output.
“Without tighter post-auction oversight and faster statutory clearances, the economic benefits of the MMDR Act amendments will remain theoretical,” the report stated.
The committee also highlighted the need for better coordination between the Centre and State governments, proposing a centralized dashboard to track the lifecycle of every critical mineral project from auction to extraction.
Summary
A parliamentary panel has raised concerns over delays in bringing auctioned mines into production, recommending a new inter-ministerial mechanism to fast-track clearances for critical minerals. The committee proposed penalties for delayed projects and incentives for early operationalization, warning that current bottlenecks threaten India’s supply chain security for EVs and defense.
Frequently asked questions (FAQs)
Q1: What is the core issue identified by the panel?
While the government has successfully auctioned hundreds of mines, there is a massive delay in starting production due to a “web of permits” (forest, environment, land acquisition) that can take years to clear.
Q2: Why focus on “critical minerals”?
Minerals like Lithium, Cobalt, and Nickel are vital for EV batteries and solar panels. Relying on imports—primarily from China—creates a strategic vulnerability that the panel wants to eliminate through domestic mining.
Q3: What solution is proposed?
A “Green Channel” for priority clearances and a centralized dashboard to ensure the Ministry of Mines, Ministry of Environment, and State governments are working on the same timeline.
Q4: How many mines are affected?
Since 2015, India has auctioned 486 mineral blocks, but only a fraction are operational, leading to a supply-side gap in the raw material market.
