Mine reclamation under MCDR: progressive mine closure plans
Under the Mineral Conservation and Development Rules, 2017, every non-coal mine needs a progressive closure plan inside its mining plan. A final closure plan is due two years before closure. Leaseholders give a financial assurance of ₹5 lakh per hectare (Category A) or ₹3 lakh (Category B). Money spent on progressive reclamation reduces it. A yearly closure report is due before 1 July.
Iron ore, bauxite and other major mineral leases follow the MCDR, administered by the Indian Bureau of Mines (IBM). Coal follows separate Ministry of Coal guidelines; see our coal mine closure guide.
This guide sets out what the rules ask and where plantation fits.
Which mines do the MCDR cover?
Rule 2 says the rules apply to all minerals except petroleum and natural gas; coal, lignite and sand for stowing; and minor minerals. States may extend some provisions to minor minerals.
The rules define Category A mines as fully mechanised mines, or mines with average employment above set thresholds. All others are Category B.
What do the closure rules require?
| Rule | What it asks |
|---|---|
| Rule 22 | Every mine has two closure plans: progressive and final, prepared to IBM guidelines and formats |
| Rule 23 | The progressive plan is part of the mining plan, submitted at each submission, modification and review |
| Rule 24 | The final plan is submitted two years before proposed closure or surrender; missing this can forfeit the financial assurance |
| Rule 26 | The leaseholder must carry out reclamation and rehabilitation as approved, and file a yearly report with the annual return before 1 July |
| Rule 27 | Financial assurance as a bank guarantee: ₹5 lakh/ha (Category A) or ₹3 lakh/ha (Category B) of land used for mining and allied activities; minimum ₹10 lakh and ₹5 lakh |
| Rule 21 | A mine cannot be abandoned until the final closure plan is implemented and certified |
The Rule 27 amounts were substituted in November 2021. The rule does not apply where a Mine Development and Production Agreement is signed and performance security is given.
How does reclamation reduce the financial assurance?
Rule 27 covers reclamation and rehabilitation done as part of progressive closure. The amount spent counts as financial assurance already spent, and the guarantee falls by that amount.
This gives a clear reason to reclaim early. Each hectare reclaimed and documented during mining is money not tied up in a bank guarantee.
If the authorised officer believes the work is not being done, the guarantee can be forfeited after notice. The State can then carry out the work itself.
Which other MCDR rules touch plantation?
- Rule 36, topsoil: remove topsoil separately and use it to restore land or stabilise external dumps; store it if it cannot be used at once.
- Rule 37, dumps: backfill where possible; where not, terrace dumps and stabilise them through vegetation or otherwise.
- Rule 34A, images: yearly drone survey (larger leases) or satellite images (others) submitted by 1 July. Plantation shows up here.
- Rule 35, sustainable mining: yearly star-rating self-assessment, also by 1 July.
Where does plantation fit in a progressive closure plan?
| Area | Typical plantation work |
|---|---|
| Backfilled pits | Topsoil spread, ground cover, then layered native planting |
| External waste dumps | Terracing, drains, grass and legume cover, shrubs and trees on benches |
| Lease boundary and roads | Green belt for dust and noise; see the green belt guide |
| Safety zone (forest leases) | Regeneration of the 7.5 m strip; see compensatory afforestation for mining leases |
| Final land use | Forest, water body, farmland or community use, set out in the final plan |
Our bauxite and iron-ore restoration guide covers species and methods.
What evidence should the yearly report carry?
- Area reclaimed in the year, by block, matching the plan.
- Planting records with species, numbers and geo-tags.
- Survival counts for earlier years' planting, with replacements.
- Photos and the same blocks shown on the Rule 34A drone or satellite images.
- Spending on reclamation, which matters for the Rule 27 adjustment.
Our monitoring guide explains how to keep one consistent dataset.
How Grow Billion Trees helps
We plan and carry out the plantation part of progressive and final closure, and care for trees for three years. We report on GreenTrack with geo-tagged records and 85% survival across our programmes. Reclamation is priced per project after a site survey. Start from the metal mining hub or plan a programme.
Further reading: Limestone Quarry and Mine Reclamation for Cement Companies · Captive Iron Ore Mine Reclamation for Steel Companies
Frequently Asked Questions
Do the MCDR apply to coal mines?
No. Rule 2 excludes coal, lignite and sand for stowing, as well as petroleum, natural gas and minor minerals. Coal follows Ministry of Coal closure guidelines.
What is the financial assurance under MCDR?
₹5 lakh per hectare for Category A mines and ₹3 lakh for Category B, on land used for mining and allied activities. The minimums are ₹10 lakh and ₹5 lakh.
Does spending on reclamation reduce the financial assurance?
Yes. Rule 27 counts money spent on progressive reclamation and rehabilitation as financial assurance already spent.
When is the final mine closure plan due?
Two years before the proposed closure or surrender of the lease, under Rule 24.
What must be done with topsoil?
Rule 36 says remove it separately and use it for restoration or dump stabilisation, or store it for later use.
Is plantation required on waste dumps?
Rule 37 says dumps that cannot be backfilled should be terraced and stabilised through vegetation or otherwise.
Sources: Indian Bureau of Mines: Mineral Conservation and Development Rules, 2017 (amended to April 2025). Last updated: October 2026. Rules change; check the latest notification before you rely on any detail.
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