CMDC-led transparent auctions, focus on critical minerals and tribal livelihood strengthening drive state’s mining transformation
TFP Bureau, Raipur, January 15, 2026:Chhattisgarh has emerged as one of the country’s leading mineral-rich states, registering remarkable progress in mineral exploration, transparent auctions and revenue generation over the past two years. This was stated by Mr. P. Dayanand, Secretary, Department of Mineral Resources, Government of Chhattisgarh, while addressing a press conference here on Thursday.
Mr. Dayanand said that more than 28 types of minerals are found across different regions of the state. With a systematic approach, the state government has been preparing mineral blocks for exploration and mining and making them available through transparent auctions and other mechanisms. As a result, mineral revenue has increased significantly, strengthening the state’s economy and contributing to overall development.
Highlighting the role of the Chhattisgarh Mineral Development Corporation (CMDC), the Secretary said the corporation has been a key partner in exploration, mining and marketing activities. Established on June 7, 2001, CMDC functions under the Department of Mineral Resources with the objective of ensuring the availability of minerals to local mineral-based industries while enhancing state revenue. CMDC’s activities include mining and marketing contracts, excavation contracts, Mining Development Operators (MDOs), exploration projects and joint ventures.
At present, CMDC is engaged in mining, marketing and exploration of nine minerals, including tin, bauxite, iron ore, copper, diamond, manganese, corundum, dolomite and coal. A special focus has been placed on tin mining in Bastar, where CMDC purchases tin ore directly from Scheduled Tribe communities to support their livelihoods. Tin mining and a smelter are also being operated through a joint venture, with tin classified as a critical mineral.
Mr. Dayanand said that over the last two years, efforts have been made to ensure fair and timely pricing for tin supplied by tribal communities. The purchase price has been increased to ₹1,926 per kg, nearly three times the earlier rate. This has led to a significant rise in tin procurement volumes. Online purchasing and real-time payments have been introduced, and a dedicated TIN (Tribal Incentive for Natural Resources) portal is being developed to enable direct online payments to beneficiaries.
In the critical minerals segment, CMDC, in collaboration with MOIL, is carrying out exploration for manganese and graphite in Balrampur district, with encouraging results. A Memorandum of Understanding has also been signed between Coal India Limited and CMDC for exploration and mining of critical minerals. A joint working committee has been formed to implement the agreement, which also covers mineral beneficiation, processing, technical cooperation and skill development for youth. These initiatives are expected to generate employment and support India’s self-reliance goals in strategic minerals.
Referring to transparent auctions, the Secretary said that under the leadership of the Chief Minister, Chhattisgarh has witnessed a transformation in mineral resource management. CMDC, through MSTC, has introduced technology-enabled and transparent auction systems, achieving record sale prices and competitive mining rates. In the last financial year, the state earned around ₹28.65 crore from iron ore sales at the Aridongri mine, while CMDC recorded a net profit of approximately ₹24 crore. CSR spending of ₹1.10 crore was undertaken between 2021 and 2025, with projects worth ₹42 lakh currently underway. As part of environmental initiatives, 14,700 trees have been planted under the ‘One Tree in the Name’ campaign.
Currently, auctions for 60,000 tonnes of iron ore are underway, providing direct and indirect employment to over 200 people. Plans are being prepared to raise Aridongri’s production capacity from 0.5 million tonnes to 2 million tonnes annually. CMDC also operates five mines in Surguja district, generating ₹11.28 crore for the state and ₹8.13 crore for the corporation between 2023–24 and December 2025. Auctions of five bauxite mines are also in progress.
Mr. Dayanand informed that mining operations at Bailadila Deposit 04 and Deposit 13 will soon commence through the CMDC–NMDC joint venture, NCL. With production expected to begin in 2026, these projects are projected to generate up to ₹7,000 crore in revenue for the state and ₹3,000 crore for CMDC at peak capacity, while ensuring iron ore availability for local industries and creating employment.
In the diamond sector, indications of kimberlite-bearing formations have been found in Baloda-Belmundi village of Mahasamund district, with drilling underway to confirm diamond potential. The long-pending Kerwa Coal Project has also achieved success, with an MDO selected through transparent auction at a premium of 15.85 per cent. At full production, the project is expected to generate around ₹150 crore for the state and ₹53 crore for the MPSMC–CMDC joint venture.
CMDC has also expanded into minor minerals, with 326.167 hectares of dolomite in Sakti district reserved for mining. Corundum mining has resumed in Bijapur district, accompanied by skill training in cutting and polishing for local employment. In copper exploration, a joint venture with Hindustan Copper Limited has been formed, with exploration underway in Mohla-Manpur district.
Outlining future plans, the Secretary said CMDC aims to boost iron ore capacity from 5 lakh to 20 lakh metric tonnes, generate new revenue streams from bauxite, dolomite and critical minerals, extract valuable elements from slag, and expand service-based mining activities. These efforts, he said, will further strengthen Chhattisgarh’s contribution to a self-reliant India while ensuring inclusive growth and sustainable development.
