Evaluate the role of cooperative federalism in natural resource governance, citing recent instances of States/UTs entrusting mineral auctions to the Centre.

Under the Constitution, States regulate mines (Entry 23, List II), subject to Union law (Entry 54, List I). Mineral governance is therefore a shared domain. Since 2015, when auction became the sole method of allotment [1], the Centre and the States have increasingly pooled their capacity. This model is useful but still incomplete.

Recent instances

• J&K (Oct 2026): The UT Government entrusted the Ministry of Mines with auctioning two Anantnag limestone blocks. This was the UT's first-ever mineral auction [2].
• Critical minerals: The MMDR Amendment, 2023 lets the Centre auction critical and strategic minerals. States still grant the concessions [3]. The Centre auctioned 10 blocks in 2025 [4].

Positive role

• Bridging capacity: Regions new to mining can use the Centre's expertise. With Assam and Uttarakhand auctioning for the first time in 2025, the auction map is widening [4].
• Transparency: Competitive bidding replaces discretion [1]. The CAG found irregularities in 44 of 119 test-checked minor-mineral leases in Jharkhand [5], which shows the risk of weak local administration.
• Incentive, not coercion: Under SASCI 2026-27, the Centre gives money to States that carry out mining reforms [6].
• Shared gains: Lease execution stays with States. District Mineral Foundations send mining revenue to affected areas [4].

Limitations

• An auction is not yet a mine: Only 79 of 585 blocks auctioned since 2015 are operational [4].
• Clearance bottlenecks: Forest clearance takes up to 34 months for commercial coal blocks. Unclear State land records add further delay [7].
• Capacity dependency: Handing over a one-time auction does not build the State skills needed for decades of royalty and illegal-mining oversight.
• Autonomy concerns: Central auctions of critical minerals risk making States implementers rather than partners.

Verdict: Cooperative federalism has worked well at the auction stage. Its role after the auction, in getting mines operational, is still weak.

Cooperative federalism has made auctions cleaner and brought new regions into the system. Its real test is how many working mines result. A joint model can turn entrustment into lasting State capacity. It would combine NMEDT-funded exploration before auction [4], digitised forest-land maps [7] and dedicated State auction cells. That would advance SDG 12 (responsible production) and the goal of balanced, cooperative development.