Before execution of mining lease under the provisions of the Mines and Minerals (Development and Regulation) Act, 1957, every mine is required to obtain statutory clearances from various departments of the central government, and respective state governments, including environmental clearance and forest clearance. Environmental clearance is issued based on the environment impact assessment of the mine.

Ministry of Mines, through Indian Bureau of Mines, has instituted the system of Star Rating for evaluation of sustainability footprints while conducting prospecting, mining, beneficiation or metallurgical operations in an area. Under Rule 35 of MCDR 2017, every lessee is mandated to obtain at least three star rating within four years from 28th February, 2017 or date of commencement of mining operations and thereafter maintain the same on year on year basis.

Further, as per Rule 26 of MCDR 2017, every holder of a mining lease has the responsibility to ensure that the protective measures including reclamation and rehabilitation works have been carried out in accordance with the approved mine closure plan or with such modifications as approved by the competent authority. 

Mining leases are encouraged to generate and use green energy. In this regard Indian Bureau of Mines has taken up a sample survey of 293 mines to map the installation of renewable energy plants and electricity consumption at the mine sites across the country. It was noted in the survey that total installed renewable energy plant capacity at these mine sites is approximately 583 Megawatts (Wind and Solar).