Vedanta Flags Land, Clearance Hurdles as 85% of Auctioned Mines Remain Non-Operational

Vedanta Flags Land, Clearance Hurdles as 85% of Auctioned Mines Remain Non-Operational​

Anil Agarwal Calls for Faster Execution to Boost India’s Resource Security​

New Delhi, March 20: Vedanta Chairman Anil Agarwal has identified three major bottlenecks delaying the operationalization of mines in India, urging swift policy action to strengthen the country’s energy and mineral security.

Highlighting the challenges, Agarwal pointed to difficulties in land acquisition, delays in environmental and forest clearances, and high mining premiums that render several projects commercially unviable. He stressed the need for faster execution of mining projects after auctions, especially amid rising global uncertainties, including tensions in the Middle East.

Majority of Auctioned Mining Blocks Yet to Start Production​

Drawing attention to the sector’s current state, Agarwal noted that nearly 85 percent of mining blocks auctioned over the past decade remain non-operational. Out of 592 blocks auctioned, only 82 are currently producing output.

He underlined that this slow pace of operationalization is a concern at a time when India remains heavily dependent on imported natural resources.

Import Dependence Driving Economic Concerns​

Agarwal highlighted that nearly 50 percent of India’s USD 400 billion import bill is attributed to natural resource imports. This dependency, he said, not only impacts economic stability but also leads to job creation outside the country.

He emphasized the strategic importance of boosting domestic production to reduce reliance on imports and improve overall resource security.

Policy Reforms Suggested to Accelerate Mining Sector Growth​

To address these challenges, Agarwal proposed several policy interventions aimed at accelerating project execution and improving viability.

Key recommendations include implementing a technology-enabled direct payment system for land acquisition, streamlining approval processes through self-certification and trust-based regulation, and capping mining premiums at 60 percent to ensure projects remain economically feasible.

India’s Potential as a Global Resource Hub​

Agarwal also pointed to India’s significant untapped potential in minerals, metals, and hydrocarbons, stating that the sector could emerge as a major driver of employment generation, including opportunities for women.

Reaffirming confidence in the government’s supportive approach, he called for coordinated efforts to unlock this potential and advance the vision of a self-reliant India.