Rajya Sabha Passes Mines Bill, Aims to Boost Critical Mineral Sector

Rajya Sabha clears the MMDR Amendment Bill, 2026, boosting India's critical mineral sector. The bill allows adding minerals like lithium to existing leases, expands exploration funding, and removes caps on mineral sales from captive mines.

In a major boost to India's critical mineral sector, the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, is cleared by the Rajya Sabha. Earlier the bill was cleared by Lok Sabha on Monday. It will become law after receiving the President's assent.

Key Changes in the MMDR Amendment Bill

Mines and Minerals (Development and Regulation) Amendment Bill, 2026 [MMDR Amendment Bill], proposed a series of changes to the existing mining framework, which also includes allowing leaseholders to add multiple minerals to an existing mining lease, expanding the scope of mineral exploration funding and removing the cap on the sale of minerals from captive mines. Furthermore, the Bill proposes amendments to the Mines and Minerals (Development and Regulation) Act, 1957, aimed at facilitating mineral exploration and development, particularly of critical and strategic minerals, while giving greater flexibility to mining lease holders.

Inclusion of Additional Minerals in Leases

Under the proposed changes, holders of mining leases for specific minerals will be allowed to approach state governments to include additional minerals in their existing leases. Also, no additional payment will be required for the inclusion of critical and strategic minerals and other specified minerals, including lithium, graphite, nickel, cobalt, gold and silver.

At the same time, leaseholders will have to pay an amount equivalent to the applicable royalty for other minerals. In the case of auctioned mines, they will also have to pay the auction premium applicable to the additional mineral. However, the Centre may modify these payment requirements through notification.

Provisions for Major and Minor Minerals

The Bill also provides for the inclusion of minor minerals in leases granted for major minerals, with the state government empowered to determine the applicable royalty and other payments. Minor minerals include building stones, gravel, sand and other minerals notified by the Centre.

For major minerals to be included in minor mineral leases, the Centre will prescribe conditions through Rules. However, atomic minerals exceeding a specified grade will not be permitted in leases granted for non-atomic minerals.

Expanding Mineral Exploration Funding

The legislation also seeks to widen the mandate of the National Mineral Exploration Trust, which currently funds mineral exploration. (ANI)

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