Mines and Minerals (Development and Regulation) Amendment Bill, 2025

Recently, Rajya Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025 for ensuring India’s mineral security.

About the Mines and Minerals (Development and Regulation) Amendment Bill, 2025

• The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957
• Key Objective: To modernise the mining framework, reduce import dependence, and create a transparent, investment-friendly environment.
  • It focuses on critical and strategic minerals essential for India’s economic growth, green transition, and national security.
    

Provisions of the Bill

• Inclusion of Critical and Strategic Minerals: Leaseholders may apply to state governments to add minerals such as lithium, cobalt, nickel, graphite, gold, and silver to an existing lease.
  • No additional royalty or payment is required for including critical and strategic minerals listed in the Seventh Schedule or Part D of the First Schedule.
  • A one-time extension of lease area is permitted:
    • Up to 10% for deep-seated minerals (below 200 metres).
    • Up to 30% for composite licences.
• National Mineral Exploration and Development Trust (NMEDT): The National Mineral Exploration Trust (NMET) is renamed as the National Mineral Exploration and Development Trust (NMEDT).
  • Its mandate is expanded to cover offshore and international exploration of critical minerals.
  • Contribution from mining leaseholders to NMEDT is increased from 2% to 3% of royalty payable.
• Mineral Exchanges: The Bill enables the establishment of mineral exchanges as registered electronic trading platforms for minerals, concentrates, and processed forms including metals.
  • Exchanges aim to ensure transparent price discovery, reduce manipulation, and promote efficiency.
  • The central government will frame rules for their registration, fees, insider trading prevention, and grievance redressal.
• Ease of Cap: The existing 50% cap on sales from captive mines is removed.
  • Captive mines can now sell 100% of production after meeting their end-use requirements.
  • State governments are also empowered to authorise sale of old mineral dumps.
    

Significance of the Bill

• Securing Critical Mineral Supply Chains: The Bill strengthens India’s ability to secure domestic and international supplies of lithium, cobalt, nickel, and graphite, vital for EV batteries, semiconductors, and renewable energy systems.
• Boosting Mining Sector and Investments: By liberalising rules, enabling mineral exchanges, and expanding lease provisions, the Bill improves transparency, investor confidence, and global competitiveness, attracting domestic and foreign capital.
• Advancing Sustainable Growth and Economic Security: The reform balances resource utilisation with community participation and welfare, ensuring that mining contributes to job creation, regional development, and economic resilience.

Conclusion

The Mines and Minerals (Development and Regulation) Amendment Bill, 2025 represents a forward-looking step towards a self-reliant, transparent, and globally competitive mineral sector, aligning with the National Critical Minerals Mission and India’s long-term economic security.