Why in news?
The government introduced amendments to the Mines and Minerals (Development and Regulation) Act of 1957 in August 2025. The changes aim to modernise the mining sector and secure critical minerals needed for India’s energy transition and strategic industries.
Key provisions
- Multiple minerals in one lease: Miners can now extract different minerals such as lithium, cobalt and gold under a single lease, encouraging efficient utilisation of resources.
- Expanded exploration fund: The National Mineral Exploration and Development Trust can now fund exploration not only within India but also overseas. The contribution rate is increased to 3% of royalty payments.
- Ease of doing business: Captive mine owners can sell surplus output without caps, and leases can be expanded for deep‑seated minerals found below 200 metres.
- Mineral exchanges: Regulated exchanges will facilitate transparent trading of mined commodities.
- Community engagement: The amendments emphasise local participation and environmental safeguards.
Significance
- Securing critical minerals: Minerals like lithium and cobalt are vital for electric vehicles, batteries and renewable energy technologies.
- Boost to mining industry: Modernising regulations can attract investment, enhance transparency and increase domestic production.
- Sustainability: Emphasising community involvement and environmental safeguards helps balance economic growth with ecological protection.
