A debate over mine auctions and mineral development has resurfaced in Jharkhand, with Leader of Opposition Babulal Marandi accusing the Hemant Soren government of slowing down mining activity, while the ruling Congress defended its approach as one that prioritises environmental safeguards and tribal rights.
The exchange follows Marandi’s visit to the Saranda region in West Singhbhum, one of the country’s largest iron ore belts. Addressing a press conference on Thursday, he alleged that several mining leases had expired but were yet to be renewed or auctioned again, resulting in the closure of mines and affecting employment, industrial activity and state revenue.
Marandi claimed that although Jharkhand possesses nearly 40 per cent of India’s mineral resources, it has not matched other mineral-producing states in auctioning new mineral blocks. Citing figures, he said that since 2019-20, 434 mineral blocks had been auctioned across the country, while only three were auctioned in Jharkhand. He also alleged that iron ore production in the state had remained largely unchanged during the period, while neighbouring Odisha had recorded significant growth.
The BJP leader linked the issue to conditions in mining districts such as West Singhbhum. He said economic activity in areas including Jamda had slowed because of mine closures and that transport operators, traders, hotels and small businesses had also been affected. Referring to the proposed closure of the ACC cement plant at Jhinkpani from August 16, he said around 1,600 families could be affected.
Marandi also questioned the functioning of the District Mineral Foundation Trust (DMFT), a fund created under the Mines and Minerals (Development and Regulation) Act to finance development in mining-affected areas. He alleged that around Rs 3,700 crore had accumulated in the West Singhbhum DMFT between 2016 and 2026 but details relating to expenditure, projects and annual reports were not available in the public domain.
Responding to the allegations, Congress spokesperson Akhtar Ali said the BJP’s criticism ignored the environmental and social dimensions of mining in Jharkhand. He said large parts of the state’s mineral deposits lie in forested and Scheduled Areas, where mining projects are subject to statutory clearances, environmental approvals and safeguards relating to the rights of tribal communities.
Ali said the framework governing the auction of major mineral blocks is determined under central laws and policies. He also argued that the state government had opposed mining proposals in ecologically sensitive forest areas whenever they threatened local communities or forests. According to him, the government’s focus is on balancing mineral development with environmental protection rather than pursuing higher production alone.
The Congress also sought to shift the focus to the Centre, claiming that Jharkhand’s pending dues of Rs 1.36 lakh crore should be released to support infrastructure and employment in mining-affected regions.
The political exchange highlights a broader policy debate over how a mineral-rich state should pursue development. The BJP has argued that delays in mine auctions have reduced investment, production and employment. The ruling alliance maintains that mining expansion cannot be separated from environmental safeguards, legal clearances and the rights of people living in mining areas.
Jharkhand remains one of India’s most mineral-rich states, with iron ore, coal, bauxite, copper and uranium forming a significant part of its resource base. Mining is a major source of state revenue and employment, particularly in districts such as West Singhbhum, Latehar, Hazaribagh, Dhanbad and Ramgarh.
