government in India (Ministry of Mines, 2017). Although the star-rating framework covers a wide range of measurable, objective parameters, it fails to incorporate qualitative factors such as social impact, community welfare, rehabilitation, and resettlement. District Mineral Foundations, non-profit statutory bodies, are established to improve the lives and livelihoods of the people and areas affected by mining-related operations. DMF funds are mandated to be spent on 'high-priority areas' consisting of drinking water, environmental preservation and pollution control, healthcare, welfare of women and children, and skill development. The remaining 30% of the fund should be allocated towards 'other-priority areas' such as physical infrastructure, irrigation, energy, and watershed development. A recent decadal assessment report on DMFs found that funds are predominantly spent on physical infrastructure, with only three states allocating more than 70% of their funds to high-priority areas (Chandra Bhushan, 2025). Recently, the Ministry of Environment, Forest & Climate Change (MOEF&CC) has exempted mining projects related to critical, atomic and strategic minerals from public consultations, citing national defence, security and strategic considerations (Govt. of India, 2025). The Environmental Impact Assessment (EIA) Notification 2006 also exempts public consultation for any project concerning national defence and security. While intended to fast-track clearances for minerals critical to future supply chains, this raises concerns. Public consultation is a cornerstone of the EC process, and its removal should not be justified without careful assessment of the actual time taken and procedural impact of a hearing. In fact, this is more important, given the severe and often irreversible environmental and health risks posed by radioactive minerals such as uranium, thorium, and certain rare-earth elements. The Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA) laid the institutional foundation by vesting 'gram sabhas' (a village-level democratic body consisting of all adult members of a village) with clear authority over customary resources and development in the scheduled areas through mandatory consultation and consent before land acquisition/rehabilitation. Another important provision of the act is that the prior recommendation of the Gram Sabha shall be mandatory before granting prospecting licenses or mining leases for minor minerals in Scheduled Areas. Key PESA provisions, such as gram sabha approval for minor mineral licenses, land acquisition and rehabilitation, and control and ownership over minor forest produce and water bodies, remain fragmented and vary across states. In practice, the gram sabha consultation is often misconstrued as requiring mere consultation rather than explicit approval or rejection (CJP Team, 2022) According to the Land Conflict Watch, 1084 ongoing conflicts have been reported in India, of which 94 (including coal) are mining-related (Land Conflict Watch, 2026). In this scenario, although India's environmental laws are well-enumerated, the absence of a robust traceability and due diligence framework exacerbates the risks of human rights violations, community conflicts, and unsafe labour practices. As India is heavily import-dependent on several critical minerals, the absence of this framework makes it difficult for Indian companies, too, to verify whether imported minerals are sourced from conflict-free regions across borders. While compliance costs can sometimes be higher, it significantly reduces long-term risks related to litigation financing and reputational damage. More importantly, they enable sustained access to global markets and investor capital. India needs to find a strategic trade-off between compliance and value-enabling moving forward. For India, strengthening traceability, enforcing due 147
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