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.