Leaseholders can now add critical and strategic minerals (like lithium, graphite, cobalt, nickel, gold, silver) to existing leases without extra cost.
National Mineral Exploration Trust’s scope widened to also fund mine and mineral development.
Captive mines allowed to sell 100% of minerals produced after meeting end-use needs (earlier capped at 50%).
Parliament on Tuesday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, with the Rajya Sabha giving its approval following clearance in the Lok Sabha. The legislation seeks to modernize India’s mining sector and strengthen the country’s push toward mineral self-reliance.
The Bill amends the MMDR Act, 1957, allowing leaseholders to apply for inclusion of additional minerals in their existing leases. For critical and strategic minerals — such as lithium, graphite, cobalt, nickel, gold, and silver — no extra payment will be required.
It also expands the mandate of the National Mineral Exploration Trust, enabling it to fund not just exploration but also development activities. Additionally, the amendment removes the cap on sales from captive mines, permitting leaseholders to sell their entire output once their end-use requirements are met.
Replying to the debate, Coal and Mines Minister G. Kishan Reddy said the government has ushered in “revolutionary changes” in the mining sector. He highlighted that state revenues from mine allocations have risen to ₹6.85 lakh crore, compared to ₹68,000 crore a decade ago. He also underlined India’s achievement of producing over one billion tonnes of coal for the first time and the government’s focus on securing critical minerals essential for the energy and technology sectors.
Opposition and allied voices in the debate welcomed the Bill while urging focus on rare earth materials and overseas mining access. Leaders like Milind Murli Deora (Shiv Sena) and Praful Patel (NCP) emphasized the importance of energy security and mapping India’s mineral wealth.
With the new reforms, the government hopes to secure India’s position as a global player in the mining of critical minerals vital for green energy, electronics, and strategic industries.
