India is rich in minerals like iron ore,manganese ore,chromite, bauxite, graphite, limestone, barite and coal. Most of the minerals are extracted by mining lease holders.Coal is mostly extracted by the public sector company Coal India Ltd. Metal based industries like steel,aluminium,sponge iron,ferro manganese,ferro chrome,ferro silicon, pig iron,rolling mills ,foundries and forging industries are established in the mineral rich states like Odisha, Chhatisgarh, Jharkhand, West Bengal, Andhra, Karnataka,Tamil Nadu and Maharastra. The requirements of the industries for ore minerals and coal are met by local supply of mineral companies.But due to various restrictions of the government departments the extraction of minerals is on a lower side of the demand.To meet the raw material demands of industries some local people make illegal extraction of minerals from the restricted areas like reserve forests and protected forests.Due to laxity on the part of local officials the extraction became racket for mineral theft and illegal supply to the industries. After the success of such illegal mining mafias took over the mineral theft activities.It is rampant in many states.This has created parallel economy in the mineral belt of India. Politicians also patronised such illegal mineral extraction in their localities.The Government of India need to tackle the problem before it goes out of control and become a difficult problem for the mineral rich states.If it is not tackled immediately it may become unmanageable in the future.