Centre clears additional 2,000 hectares in Gadchiroli for iron-ore mining

MUMBAI: The union ministry of mines has permitted the Maharashtra government to reserve around 2,000 hectares of land in Gadchiroli district for iron-ore mining

MUMBAI: The union ministry of mines has permitted the Maharashtra government to reserve around 2,000 hectares of land in Gadchiroli district for iron-ore mining. The mining operations will be undertaken through the Maharashtra State Mining Corporation Limited (MSMC), and the state industries department issued a notification to this effect on November 5.

The proposed mining area covers 14 villages across Etapalli and Bhamragad tehsils. Once known for Maoist insurgency and considered among Maharashtra’s most backward districts, Gadchiroli has

significant mineral resources, with the proposed mining activity expected to accelerate its economic development. The push for expanded iron ore mining, however, has faced strong opposition from local residents and tribal communities, who fear that mining activities could threaten their livelihood.

The state government has also set up the Maharashtra State Mineral Exploration Trust to mobilise funds from mining and its notified rules on October 9 for. Under these rules, mining leaseholders, quarry licensees and permit holders dealing in minor minerals will have to contribute an amount equivalent to 2% of the royalty payable on minerals extracted or consumed by them. The state government will transfer 10% of the revenue collected as well as penalties recovered under relevant provisions of the Maharashtra Land Revenue Code, 1966, to the trust.

The funds will be used primarily for regional and detailed mineral exploration, particularly in geologically promising areas, and to identify deposits of strategic and critical minerals. The trust will

also support high-risk exploration of deep-seated mineral deposits, advanced geological surveys and the use of modern technologies, including AI and drone-based surveys. Its mandate also includes research into sustainable mining practices, mineral extraction technologies, and so on. It will also develop a digital repository of geological data and a State Mineral Atlas.

The trust’s governing body will be chaired by the minister in charge of the mining department, with senior officials from the industries, revenue, environment and finance departments, the managing director of MSMC, a representative of the Geological Survey of India and a nominee from the Mineral Exploration Corporation Limited as members. The director-general of the directorate of geology and mining will be its member secretary.

Currently, Lloyds Metals & Energy Ltd (LMEL) operates an iron-ore mine at Surjagarh in Gadchiroli district, which was awarded on lease in 2007. However, mining operations could begin only in 2021 due to the Maoist insurgency in the region.

In June 2025, the state government also constituted the Gadchiroli District Mining Authority (GDMA), vesting it with extensive powers to develop the district as the country’s new steel hub, a dream of CM Devendra Fadnavis. The authority has been granted statutory protection against suits, prosecution and other legal proceedings for actions taken in the discharge of its duties. It has also been empowered to frame rules and regulations it considers necessary to exercise its powers and fulfil its responsibilities.