Parliament on Tuesday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, with the Rajya Sabha giving its nod after the Lok Sabha approved it on August 12. The legislation amends the original MMDR Act of 1957.
The bill provides that lease holders may apply to the state government for adding other minerals to an existing lease. For inclusion of critical and strategic minerals, and other specified minerals, no additional amount needs to be paid. These include minerals such as lithium, graphite, nickel, cobalt, gold, and silver. The Act establishes the National Mineral Exploration Trust to fund mineral exploration in the country. The bill widens the scope of the Trust to also fund development of mines and minerals. Under the Act, captive mines are allowed to sell up to 50% of minerals produced in a year, after meeting end-use requirements. The bill removes the limit on sale of minerals. The bill provides for establishing an authority to register and regulate mineral exchanges.
Coal and Mines Minister G Kishan Reddy said the reforms aim to make India self-reliant in critical minerals, highlighting record coal production of more than one billion tonnes and a Rs 32,000 crore allocation for the National Critical Mineral Mission. He noted that states have already received Rs 6.85 lakh crore from transparent mine allocations.
The legislation drew support across party lines. Lawmakers described it as a key step in ensuring energy security and resource independence.
"A forward-looking reform, which has been hanging fire for a very long time. This bill is not just about minerals, it is about securing India’s economic security, future and ensuring development in a more transparent and sustainable way," BJP leader Kiran Choudhary said during the debate.