Mines Secretary Balvinder Kumar also said the new Mineral Exploration Policy is expected to be launched next month after the Cabinet approval.
The ministry will start issuing the rating from next month.
"We have identified various indicators such as social, economic and environmental. We have assigned certain marks to these indicators. We will give five-star rating to the miner who gets maximum score out of 100. If somebody gets lesser rank, he would asked to improve within a timeframe. It will be on self-certification basis," Kumar told reporters.
Kumar said NISG is in the process of developing a website for all the stakeholders to provide input data for the purpose of star rating.
The ministry is also planning to use space technology to check illegal mining in the country.