New Delhi: Parliament has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, aimed at promoting conservation of minerals, zero-waste mining, and supporting the National Critical Mineral Mission (NCMM). The bill, cleared by the Rajya Sabha on Tuesday after being approved in the Lok Sabha last week, empowers the government to strengthen self-reliance in the critical minerals sector.
Key Highlights of the Bill
- Expansion of scope: Enables inclusion of new minerals in mining leases and extraction of deep-seated minerals.
- Critical minerals focus: Supports production of 24 identified minerals vital for EVs, batteries, aerospace, LEDs, and defence.
- Market reforms: Proposes setting up mineral exchanges to ensure transparent pricing and investment growth.
- Captive mines flexibility: Removes restrictions on sale of minerals from captive mines once end-use requirements are met.
- Environmental safety: Allows sale of old mineral dumps to reduce hazards and bring more supply to market.
- Trust revamp: Renames the National Mineral Exploration Trust to National Mineral Exploration and Development Trust; increases royalty contribution from 2% to 3%.
- Exploration projects: Geological Survey of India to carry out 1,200 projects by 2030-31 under NCMM.
Government’s Position
Union Minister for Coal and Mines G. Kishan Reddy said:
- The Modi government is modernising mining with technology and transparency.
- India is reducing dependence on mineral imports by promoting domestic production and offshore mining.
- Offshore auctions already launched for 13 blocks, including 7 polymetallic nodules in the Andaman Sea.
- MoUs signed with countries like Argentina and Zambia for mineral exploration.
Strategic Importance
- Critical minerals are essential for energy transition, electric mobility, renewable energy, and defence manufacturing.
- Global geopolitical shifts have disrupted supply chains; India seeks bilateral partnerships with countries such as Australia, Peru, Zimbabwe, and Mozambique.
- No additional charge will be levied for adding critical and strategic minerals to leases, to incentivise their production.
Officials noted that the bill strengthens supply-chain resilience for rare earth elements and critical minerals, positioning India as a key player in the global energy transition.
