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Home Opinion Editorial

Reform Shapes J&K Mineral Revenue

From Editor's Desk by From Editor's Desk
December 17, 2025
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“Rising public scrutiny is forcing governments to reform mineral governance, prioritize revenue collection, and strictly enforce against illegal mining. This recognizes that poorly managed mineral wealth is an economic and environmental liability.”The recent review meeting chaired by Chief Secretary Atal Dulloo on the performance of the Mining Department signals a renewed administrative push to place Jammu and Kashmir’s mining sector on a transparent, technology-driven and sustainable footing. At a time when public scrutiny over resource exploitation is rising, the emphasis on reforms, revenue realisation and strict enforcement against illegal mining reflects a recognition that mineral wealth, if poorly governed, can become both an economic liability and an environmental burden. Mining has long remained a sensitive sector in J&K, marked by legacy issues of unregulated extraction, revenue leakages and environmental degradation. The Chief Secretary’s focus on transparency, scientific assessment and auction-based allocation is therefore not merely procedural but structural in nature. By reviewing policy reforms, auctioning mechanisms and monitoring systems, the administration is attempting to replace discretion with data, opacity with accountability. A notable highlight of the meeting was the commendation of BISAG-N’s role in strengthening mining surveillance. The integration of vehicle tracking systems, ATMC cameras at exit points and public grievance redressal platforms marks a decisive shift towards technology-led governance. Illegal mining thrives in gaps—gaps of oversight, enforcement and information. Digital surveillance, when effectively implemented, can narrow these gaps and act as a powerful deterrent against unauthorised extraction and transportation of minerals. The Chief Secretary’s satisfaction with the live demonstration suggests political and administrative buy-in, which is critical for the success of such systems. Equally important is the directive to undertake G3-stage geological studies of key mineral blocks such as lignite, marble, graphite and granite through MECL. Scientific assessment is the bedrock of responsible mining. Without credible data on reserves, auctions risk undervaluation, speculative bidding or poor investor response. Robust geological studies not only improve revenue outcomes but also enhance investor confidence by reducing uncertainty and aligning J&K’s mining framework with national best practices. The push to operationalise 110 non-functional minor mineral blocks across districts deserves particular attention.

“J&K’s mining challenge is balancing revenue growth with environmental/social sustainability. Success depends on consistent implementation of reforms, ensuring technology, transparency, and enforcement work together to achieve responsible resource management.”

Minor minerals are the backbone of construction and infrastructure development, and their unavailability often leads to inflated costs and illegal extraction. Unlocking these blocks through transparent auctions can simultaneously ensure material availability for development projects and boost local revenues. However, speed must not come at the cost of safeguards. Environmental clearances, community concerns and post-mining restoration must remain integral to this process. The firm message on zero tolerance towards illegal mining is timely. Enforcement, backed by penal action, is essential to establish deterrence. Yet enforcement alone cannot succeed without viable legal alternatives. The reforms outlined—auction-based allocation, mine closure provisions and monitoring mechanisms—suggest an understanding that compliance improves when legal pathways are clear, predictable and fair. The achievements highlighted by Additional Chief Secretary Mining Anil Kumar Singh underscore tangible progress. The e-auction of seven limestone blocks, launched by the Union Minister of Coal and Mines, marks a significant step towards scientific exploitation of major minerals. Further, securing a ₹100 crore grant under the Scheme for Special Assistance to States for Capital Investment (SASCI) reflects both policy compliance and fiscal reward. These funds, if prudently utilised, can strengthen exploration, mapping and regulatory capacity. Ultimately, the challenge for J&K lies in balancing revenue maximisation with environmental sustainability and social responsibility. Mining reforms must not only fill state coffers but also protect fragile ecosystems and local livelihoods. The direction set by the Chief Secretary indicates intent; the test will lie in consistent implementation. If technology, transparency and enforcement move in tandem, J&K’s mining sector could well transform from a governance challenge into a model of responsible resource management.

 

From Editor's Desk

From Editor's Desk

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