In early August 2025, thousands of small-scale miners and stone crusher operators across the Indian state of Rajasthan launched an indefinite strike to protest new mining regulations they claim are unworkable and unfair. The strike, organized by the Rajasthan Stone Crusher Association and the Rajasthan Small Mines Lease Holder Association, has brought operations to a halt across approximately 18,000 leaseholds and 2,200 crusher units. Protesters are demanding revisions to rules around lease renewals, drone-based compliance mapping, expanded buffer zones, and what they view as excessive royalty rates. Industry representatives argue these new conditions impose disproportionate compliance costs and put many local businesses at risk of closure.
The financial impact of the strike is significant, with estimated losses exceeding ₹150 crore (approximately USD 18 million) within the first week alone. The disruptions have already begun affecting the local construction industry and labor markets. Small mine operators emphasize that they are not opposing regulation per se, but rather the lack of consultation and the complexity of the rules, which are difficult to comply with at their scale of operation. Their grievances also include being held liable for unauthorized mining activities in nearby areas, even when they are not the direct perpetrators.
This protest underscores a critical dimension of the social license to operate (SLO): that even legally sanctioned operators can revoke their informal support for the regulatory framework when policies are perceived as top-down, rigid, or out of sync with field realities. The Rajasthan case illustrates how regulatory legitimacy, especially in resource governance, depends not only on enforcement, but on meaningful participation and trust. Without mechanisms for inclusive dialogue and adaptive implementation, formal mining sectors risk losing credibility and functionality, even in jurisdictions where they traditionally enjoy state support.