Parliament passes MMDR Amendment Bill 2026

AI Summary

India's Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill 2026 to boost exploration and development of critical and strategic minerals. The bill includes provisions for expanding mining leases, easing sale restrictions on captive mines, establishing a mineral exchange regulator, and funding mine development through the renamed National Mineral Exploration and Development Trust.

Parliament has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, after the Rajya Sabha cleared the legislation on Thursday, a day after it was passed by the Lok Sabha.The Bill seeks to boost mineral exploration and development, particularly of critical and strategic minerals, while giving mining lease holders greater flexibility to include additional minerals in existing leases.The legislation amends the Mines and Minerals (Development and Regulation) Act, 1957, allowing mining lease holders to approach state governments to add other minerals to an existing lease.Critical minerals to get special treatmentFor the inclusion of critical and strategic minerals and other specified minerals such as lithium, graphite, nickel, cobalt, gold and silver, lease holders will not have to pay an additional amount.For other minerals, lease holders will have to pay an amount equivalent to the applicable royalty. In the case of auctioned mines, the applicable auction premium for the additional mineral will also have to be paid. The Centre will have the power to modify these payment requirements through notification.The Bill also allows minor minerals to be included in leases granted for major minerals. State governments will determine the royalty and other payments in such cases.Minor minerals include building stones, gravel, sand and other minerals notified as minor minerals by the Centre.Captive mines can sell more mineralsOne of the key changes is the removal of the existing 50% ceiling on the sale of minerals produced from captive mines.Currently, captive mines can sell up to half of their annual mineral production after meeting end-use requirements. The amendment seeks to remove this restriction, giving captive mine operators greater flexibility to sell their output.State governments will also be empowered to permit the sale of mineral dumps accumulated within leased areas up to a date specified by the Centre.Mineral exploration trust to fund mine developmentThe Bill also expands the mandate of the National Mineral Exploration Trust.The trust, currently focused on funding mineral exploration, will also be able to finance the development of mines and minerals. It will subsequently be renamed the National Mineral Exploration and Development Trust.For deep-seated minerals found more than 200 metres below the surface, the legislation proposes a one-time expansion of the area covered by a mining or composite lease.The area can be increased by up to 30% for a composite licence and up to 10% for a mining lease.Mineral exchange regulator proposedThe legislation also proposes setting up an authority to register and regulate mineral exchanges.A mineral exchange has been defined as a registered electronic trading platform or marketplace for trading minerals and metals.The government has said the amendments will broaden the mineral resource base available to miners, encourage exploration and development of critical minerals and provide greater flexibility in the use and trading of mineral resources.Other Bills passed by ParliamentThe Rajya Sabha also passed the National Co-operative Development Corporation (Amendment) Bill, 2026 and the Kerala (Alteration of Name) Bill, 2026 on Wednesday, after both Bills were cleared by the Lok Sabha on Tuesday.The Tribunals Reforms Bill, 2026 was passed by the Rajya Sabha on Tuesday. It seeks to improve tribunal functioning and bring greater transparency and uniformity to the appointment and service conditions of tribunal members, besides proposing a National Tribunals Commission.Meanwhile, the Foreign Contribution (Regulation) Amendment Bill, 2026 was referred to a 31-member Joint Parliamentary Committee for detailed examination amid Opposition protests.The JPC will have 21 members from the Lok Sabha and 10 from the Rajya Sabha. Opposition parties, including the Congress, Samajwadi Party and Trinamool Congress, have alleged that the proposed changes could be used to target NGOs, minority institutions and organisations receiving foreign contributions.The government has defended the Bill, saying the amendments are aimed at ensuring greater transparency in the use of foreign funds and protecting national interests.August 13 is the scheduled last day of the Monsoon Session of Parliament.(With inputs from PTI)