Mines and Minerals Amendment Bill 2025
The Indian Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill in August 2025. This legislation aims to boost the mining sector by promoting transparency, enhancing production, and facilitating trade in critical minerals. The Bill introduces key reforms to the 1957 Act, focusing on strategic minerals vital for technology and industry.
Recent Legislative Developments
The Bill was passed by the Lok Sabha on 12 August and cleared by the Rajya Sabha on 19 August 2025. The Opposition staged a walkout during the Rajya Sabha debate, citing concerns over the Bill’s implications. The government defended the Bill as a revolutionary reform to increase mineral production and market efficiency.
Inclusion of Critical and Strategic Minerals
The Bill allows mining leaseholders to add rare minerals like lithium, cobalt, nickel, gold, and silver to their existing leases without paying extra royalties. For other minerals, payment of royalties and auction premiums applies. This flexibility aims to accelerate extraction of minerals crucial for electronics, aerospace, agriculture, and space technology.
Expansion of National Mineral Exploration Trust
The National Mineral Exploration Trust is renamed the National Mineral Exploration and Development Trust. Its scope widens to fund both exploration and development of mines. Contributions from lessees increase from two to three percent of royalties. The Trust can now support offshore and international exploration projects.
Removal of Sale Limits for Captive Mines
Previously, captive mines could sell only up to 50% of their mineral production after meeting internal needs. The Bill removes this cap, allowing unrestricted sale of minerals. It also empowers state governments to permit sale of mineral dumps within leased areas, improving resource utilisation.
Extension of Mining Lease Areas
The Bill permits a one-time extension of mining or composite lease areas for deep-seated minerals found below 200 metres. Extensions can be up to 30% for composite licences and 10% for mining leases. This provision supports the extraction of minerals at greater depths, encouraging deeper mining activities.
Introduction of Mineral Exchanges
The Bill establishes an authority to regulate mineral exchanges, which are electronic platforms for trading minerals and metals. The central government will frame rules for registration, fees, prevention of market manipulation, and grievance redressal. This aims to create a transparent and efficient market for mineral trade.
Impact on the Mining Sector
The reforms are expected to enhance mineral production, reduce corruption, and improve market mechanisms. By focusing on critical minerals, the Bill aligns with India’s strategic interests in technology and energy sectors. It also supports the government’s National Critical Mineral Mission with a ₹34,000 crore budget.
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