Amid growing global competition for critical minerals, the government is preparing to ease a long-standing restriction that bars miners from extracting minerals not listed in their original lease agreements, according to officials familiar with the development.
Focus on Legacy Mining Leases
The reform targets over 2,500 mining leases allocated before 2015, when mineral rights were granted without auctions. Many of these mines remain underutilized. The proposed change will allow leaseholders to commercially extract newly discovered strategic resources such as lithium, cobalt, and rare earth elements—key materials for clean energy, automotive, electronics, and defense industries.
Amendment to MMDR Act on Agenda
The government plans to introduce amendments to the Mines and Minerals (Development and Regulation) Act (MMDR Act) during the monsoon session of Parliament. If approved, miners will be able to secure a separate license for newly found minerals through a streamlined “deemed approval” process, avoiding fresh auctions or additional premiums.
Unlocking Untapped Mineral Potential
Currently, rules force miners to leave valuable associated minerals untouched, which constrains India’s critical mineral output. Projectstoday.com reports that the reform will revive idle mines, boost domestic production, and strengthen India’s strategic and economic security by tapping vast untapped reserves.
