Parliament Clears Landmark Mines and Minerals Amendment Bill, 2025 to Boost Critical Mineral Production

On August 19, 2025, Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, marking a key reform to the MMDR Act, 1957. This Bill is set to transform India’s mineral sector by expanding access to critical minerals, modernising exploration practices, and improving the efficiency of resource management.

Key Amendments and Provisions

Expansion of Trust Mandate

The National Mineral Exploration Trust is renamed the National Mineral Exploration and Development Trust, now empowered to support mineral projects not only in India—including offshore—but also overseas. The Trust’s funding capability has been enhanced by increasing the royalty contribution from 2% to 3%.

Lease Flexibility for Deep-Seated Minerals

Lessee companies can now extend their mining lease areas by up to 10% for mining leases and 30% for composite licences. These provisions are specifically aimed at deep-seated and critical minerals, such as lithium, cobalt, nickel, and rare earths. Importantly, leaseholders can now add these critical minerals to existing leases without any additional payment.

Liberalisation of Captive Mining

The Bill removes the 50% sale cap on captive mining operations. Leaseholders can now sell surplus minerals freely in the open market after fulfilling their own requirements, subject to a nominal additional payment to the government.

Creation of Mineral Exchanges

The Bill authorises the creation of mineral exchanges, formal electronic platforms for transparent and efficient trade in minerals. These exchanges will help establish better pricing mechanisms and increase investor confidence in India’s mining ecosystem.

Sustainability and Strategic Resource Security

By promoting zero-waste mining and responsible extraction, the Bill aligns with India’s environmental goals and the National Critical Mineral Mission, supporting strategic sectors such as electric vehicles, defense, and renewable energy.

Broader Objectives and Impact

India currently relies heavily on imports for critical minerals, which are vital for high-tech industries and national security. With limited domestic reserves and a growing demand in sectors like batteries, electronics, and green energy, this Bill aims to,

  • Reduce dependency on imports.
  • Boost local production and self-sufficiency.
  • Attract private investment and foreign collaboration.
  • Strengthen India’s position in global supply chains.

By modernising rules, enhancing exploration capacity, and enabling easier access to high-value minerals, the amendment is expected to unlock significant economic and strategic value.

Shivam

As a Content Executive Writer at Adda247, I am dedicated to helping students stay ahead in their competitive exam preparation by providing clear, engaging, and insightful coverage of both major and minor current affairs. With a keen focus on trends and developments that can be crucial for exams, researches and presents daily news in a way that equips aspirants with the knowledge and confidence they need to excel. Through well-crafted content, Its my duty to ensures that learners remain informed, prepared, and ready to tackle any current affairs-related questions in their exams.

Recent Posts

Gopal Vittal Re-elected GSMA Chair for Second Term Until December 2028

Bharti Airtel Executive Vice-Chairman, Gopal Vittal, has been re-elected as Chairperson of the Global System…

3 hours ago

Tiger Triumph 2026: India–US Tri-Service HADR Exercise Begins in Visakhapatnam

The 5th Edition of the India-US Bilateral Tri-Service Humanitarian Assistance and Disaster Relief (HADR) Exercise…

3 hours ago

Tammer Tournament 2026: India Tops Medal Tally with 14 Medals in Finland

India topped the medal tally with 14 medals at the Tammer Tournament 2026 in Tampere,…

4 hours ago

India’s First Bharat-Made Bullet Train: Features, Interiors, Technology and Passenger Facilities

India is getting one step closer to having a high-speed rail service after the Bharat-made…

5 hours ago

Bihar-Based Women’s Movement Gets Global Recognition at UN SDG Action Awards 2026

The film titled ‘Mothers of Courage’ has been awarded the United Nations SDG Action Award…

6 hours ago

International Day for Biosphere Reserves 2026: Date, Significance, UNESCO and India’s 13 Biosphere Reserves

The International Day for Biosphere Reserves is celebrated every year on 3rd November. This was…

6 hours ago