The Tamil Nadu government is initiating a major overhaul of its Natural Resources Department, focusing on digitization and online monitoring to double revenue over the coming years. Officials expect these stricter regulations and improved oversight to boost annual income to approximately ₹6,500 crore in the first year, with a long-term target of ₹9,000 crore.
During 2025-26, the department generated roughly ₹4,500 crore from mining lease fees, major minerals, land taxes, royalties, and contributions to the green fund and District Mineral Foundation Trust. Currently, a significant volume of minerals extracted from both leased and non-leased areas remains outside the scope of mineral-bearing land tax, preventing the collection of royalties on these resources.
Separately, a three-month ban on transporting construction aggregates to neighboring states has resulted in a 15% decline in the movement of such materials.
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