Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu chaired a review of the state's mining wing in Shimla on Wednesday, July 29, 2026 — and the numbers tell a sharp story: mineral revenue has climbed nearly 70 percent in three years, yet a decade-old freeze on limestone royalty rates is quietly bleeding the state's coffers.

From Rs 200 Crore to Rs 340 Crore — and Still Leaving Money on the Table

Revenue from major and minor minerals stood at Rs 200 crore in FY 2021-22. By FY 2025-26, that figure has risen to Rs 340 crore — a gain that reflects tighter enforcement and expanded extraction. Industry Minister Harshvardhan Chauhan was present at the meeting alongside senior departmental officers.

But the headline growth obscures a structural problem. The central government has not revised limestone royalty rates since 2014 — a freeze of over a decade that directly suppresses what Himachal Pradesh earns from one of its most abundant mineral resources. Sukhu made clear the state will push back: the matter will be raised 'prominently' to secure what he called the state's 'rightful share.'

The Limestone Royalty Standoff With New Delhi

Under the Mines and Minerals (Development and Regulation) Act, royalty rates on major minerals — including limestone — are set by the central government, leaving states dependent on New Delhi's revision schedule. Himachal Pradesh is not alone in this bind; several mineral-rich states have periodically pressed the Ministry of Mines for upward revisions to augment non-tax revenues.

With limestone royalty rates unchanged since 2014, the real value of what the state collects has eroded steadily against inflation and rising extraction volumes. Sukhu's decision to surface this at a formal departmental review signals the state intends to escalate the demand through official channels.

Crackdown on Illegal Mining — Orders on the Table

The review meeting was not only about revenue arithmetic. Sukhu issued pointed directives to departments: mineral extraction must follow scientific and environment-friendly methods; illegal mining must face 'effective curbs'; and violators must be met with strict action. The combination of revenue ambition and enforcement discipline is a signal that the state is tightening its grip on a sector that has historically leaked value through unregulated activity.

Illegal mining along river beds and hillside quarries has long been a challenge in Himachal Pradesh, carrying both ecological and fiscal costs. Stricter enforcement, if sustained, could push official revenue figures even higher in the years ahead.

Himachal Pradesh has the momentum in its mining revenue story — what it needs now is a revision from New Delhi to match that momentum with rates that reflect the last twelve years of economic reality.