View of the Rajya Sabha
Credit: PTI File Photo
New Delhi: The Mines and Minerals (Development and Regulation) Amendment Bill, 2025, which aimed at further liberalising and modernising India's mineral sector with a particular focus on critical and strategic minerals essential for the country's green energy transition, passed in Parliament on Tuesday.
The legislation, which amends the original Mines and Minerals (Development and Regulation) Act, 1957, and was earlier passed by the Lok Sabha on August 12, received approval from the Rajya Sabha through a voice vote.
Though around 19 members participated in the debate, Opposition MPs staged a walkout from the House.
Responding to the debate, Union Minister of Coal and Mines G Kishan Reddy said the growing importance of critical minerals, noting that the government has identified 24 critical and strategic minerals and launched the National Critical Mineral Mission (NCMM) with an outlay of Rs 34,000 crore to increase domestic production, including from offshore areas.
The amendment bill introduces several significant changes to modernise the mining framework: Mining leaseholders can now add new minerals, especially critical ones like lithium, cobalt, and nickel, to their existing operations without paying additional royalty.
The National Mineral Exploration Trust has been renamed as the National Mineral Exploration and Development Trust, with its scope widened to fund not only exploration but also development of mines and minerals, including in offshore areas and internationally. Contributions from lessees to the trust will increase from 2 per cent to 3 per cent of royalty.
The bill permits one-time extension of mining areas for deep-seated minerals and removes the 50 per cent sales cap on minerals from captive mines. States are also empowered to allow sales of mineral dumps.
The legislation establishes regulated mineral exchanges for transparent trading and streamlines licensing procedures to attract investments and enhance transparency.
Looking ahead to 2030, Reddy projected substantial increases in mineral demand: iron ore requirement is expected to reach 450 million tonnes, limestone 720 million tonnes, bauxite 37 million tonnes, and coal 1,522 million tonnes.