Parliament approved the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, marking another step toward liberalising and modernising India’s mineral sector. The legislation, which amends the original 1957 Act, focuses on critical and strategic minerals essential for the country’s green energy transition. The Lok Sabha cleared the bill, and the Rajya Sabha passed it through a voice vote.
Government Highlights Decade of Reform
Union minister of coal and mines G. Kishan Reddy stated, “The current government has brought revolutionary reforms, introducing transparency and accountability that have significantly boosted coal and mineral production”. He stressed the growing importance of critical minerals, noting that the government has identified 24 minerals under this category. To drive domestic production, the government launched the National Critical Mineral Mission (NCMM) with an outlay of ₹34,000 crore, including provisions for exploration in offshore areas.
Expanding Opportunities for Critical Minerals
Reddy further highlighted, “From cell phones to airplanes, laptops to space technology, and even agriculture, critical minerals are required everywhere. Our challenge is to increase production.”
The amendment introduces key changes to modernise the mining framework:
*Mining leaseholders can now add new minerals—especially critical ones such as lithium, cobalt, and nickel—to existing operations without paying additional royalty.
* The government renamed the National Mineral Exploration Trust as the National Mineral Exploration and Development Trust and expanded its scope to fund exploration and development, including offshore and international projects. It also increased lessees’ contributions from 2% to 3% of royalty.
*The Bill permits a one-time extension of mining areas for deep-seated minerals and removes the 50% sales cap on minerals from captive mines.
*States are empowered to allow sales of mineral dumps.
*The legislation also establishes regulated mineral exchanges for transparent trading and streamlines licensing to attract investment.
Securing Mineral Supply Chains
Given India’s limited domestic reserves, the country depends heavily on imports for critical minerals.
To reduce this reliance, the government is pursuing a multi-pronged strategy:
*Partnering with Zambia, Argentina, and Australia to secure supplies.
*Forming a public sector undertaking to source minerals from five blocks in Argentina, where lithium exploration is underway and expected to conclude next year.
*The government has identified 13 offshore blocks for exploration and is actively encouraging private sector participation.
*Strengthening bilateral cooperation through the Prime Minister’s recent five-country tour, which included mineral security discussions.
*The Geological Survey of India (GSI), which marked its 175th anniversary this year, will establish a dedicated division for critical mineral exploration.
Towards a Modern Mineral Economy
The passage of the Mines and Minerals Amendment Bill, 2025, represents a critical step in building a modern, transparent, and investment-friendly mineral sector. As reported by nagalandpost.com, by aligning mining reforms with the needs of the green energy transition, India aims to secure its mineral supply chains, boost domestic production, and reduce import dependence—laying the foundation for sustainable economic growth.
