13 August,2026 02:16 PM IST | New Delhi | mid-day online correspondent
Rajya Sabha clears MMDR Amendment Bill to boost India’s critical mineral sector. (PICS/PTI)
The c has cleared the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, marking a significant step towards strengthening India's critical and strategic mineral sector.
The Bill, which seeks to introduce several changes to the country's existing mining framework, had earlier been passed by the Lok Sabha on Monday. It will become law after receiving the President's assent.
The proposed amendments seek to facilitate mineral exploration and development while providing greater flexibility to mining leaseholders.
One of the key provisions of the MMDR Amendment Bill is a proposal to allow holders of existing mining leases to add multiple minerals to their leases.
Under the proposed framework, mining leaseholders can approach state governments to include additional minerals in their existing leases.
For certain critical and strategic minerals, including lithium, graphite, nickel, cobalt, gold and silver, no additional payment will be required for their inclusion under the proposed changes.
For other minerals, leaseholders will be required to pay an amount equivalent to the applicable royalty.
In the case of auctioned mines, an additional auction premium applicable to the newly included mineral will also have to be paid. However, the Centre will have the power to modify these payment requirements through a notification.
The Bill also proposes allowing minor minerals to be included in leases granted for major minerals.
The state government will determine the applicable royalty and other payments in such cases.
Minor minerals include materials such as building stones, gravel and sand, along with other minerals notified by the Centre.
Conversely, the Bill provides for major minerals to be included in minor mineral leases under conditions prescribed by the Centre through rules.
However, atomic minerals above a specified grade will not be permitted to be included in leases granted for non-atomic minerals.
The proposed legislation places greater emphasis on the exploration and development of critical and strategic minerals, which are considered important for India's industrial and technological requirements.
The Bill also seeks to expand the role of the National Mineral Exploration Trust, which currently provides funding for mineral exploration.
The proposed changes are aimed at widening the scope of exploration activities and supporting the discovery and development of mineral resources.
The amendments are expected to provide greater flexibility to mining leaseholders while encouraging exploration of minerals that are increasingly important for sectors such as clean energy, advanced manufacturing and technology.
Critical minerals such as lithium, cobalt, nickel and graphite are important components of batteries, renewable energy technologies and other emerging industries.
The passage of the Bill in both Houses of Parliament marks a key step in the government's efforts to strengthen domestic mineral exploration and reduce potential vulnerabilities in critical mineral supply chains.
(With inputs from ANI)
