India’s Parliament recently approved the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, on August 19, 2025. This groundbreaking bill aims to revolutionize the mineral sector by liberalizing mining, boosting domestic critical mineral output, and modernizing the MMDR Act with enhanced exploration practices and comprehensive reforms.
Key Amendments and Provisions
- Expansion of Trust Mandate: The National Mineral Exploration Trust is now the National Mineral Exploration and Development Trust, empowered to support mineral projects in India and overseas with increased funding from a 2% to 3% royalty contribution.
- Lease Flexibility for Deep-Seated Minerals: Lessee companies can extend mining lease areas by up to 10% for mining leases and 30% for composite licences, focusing on critical minerals like lithium, cobalt, nickel, and rare earths.
- Liberalisation of Captive Mining: The 50% cap on captive mining operations has been removed, allowing leaseholders to freely sell surplus minerals in the open market after meeting their own needs.
- Creation of Mineral Exchanges: Authorization for mineral exchanges to establish transparent platforms for mineral trade, enhancing pricing mechanisms and investor confidence.
- Sustainability and Strategic Resource Security: Promoting responsible extraction aligns with India’s environmental goals and supports sectors like electric vehicles, defense, and renewable energy.
Broader Objectives and Impact
- Reduce dependency on imports.
- Boost local production and self-sufficiency.
- Attract private investment and foreign collaboration.
- Strengthen India’s role in global supply chains.
Key Takeaways for Competitive Exams
- The Mines and Minerals Amendment Bill, 2025, aims to liberalize mining, enhance domestic critical mineral output, and modernize the MMDR Act.
- The bill expands the Trust mandate, provides lease flexibility for deep-seated minerals, liberalizes captive mining, establishes mineral exchanges, and promotes sustainability.
- India seeks to reduce import dependency, increase self-sufficiency, attract investments, and strengthen its position in global supply chains through this legislation.
