Lok Sabha passes MMDR Amendment bill to boost critical mineral exploration, mining flexibility

New Delhi [India], August 13 (ANI): The Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to facilitate mineral exploration and development, particularly of critical and strategic minerals, while providing greater flexibility to mining lease holders.
The MMDR Amendment Bill, 2026, passed on Wednesday, proposes amendments to the Mines and Minerals (Development and Regulation) Act, 1957, allowing a mining lease holder to apply to the state government for inclusion of other minerals in an existing lease.
For inclusion of critical and strategic minerals and other specified minerals, including lithium, graphite, nickel, cobalt, gold and silver, no additional amount will be required to be paid. For other minerals, the leaseholder will have to pay an amount equivalent to the applicable royalty.
In the case of auctioned mines, the leaseholder will also have to pay the auction premium applicable to the included mineral. The Central government may modify these payment requirements through a notification.
The Bill also provides for the inclusion of minor minerals in mining leases granted for major minerals. In such cases, the State Government may determine the royalty and other payments. Minor minerals include building stones, gravel, sand and other minerals declared as minor minerals by the Centre.
For inclusion of major minerals in minor mineral leases, the Central Government will prescribe conditions through Rules. However, an atomic mineral above a specified grade cannot be included in a mining lease granted for non-atomic minerals.
The proposed legislation also seeks to expand the scope of the National Mineral Exploration Trust. The Trust, which is currently mandated to fund mineral exploration, will also be empowered to finance the development of mines and minerals. It will consequently be renamed the National Mineral Exploration and Development Trust.
Another key proposal is the removal of the existing ceiling on the sale of minerals produced from captive mines. At present, captive mines can sell up to 50 per cent of the minerals produced in a year after meeting end-use requirements. The Bill seeks to remove this limit.
It also empowers state governments to permit the sale of mineral dumps stacked within the leased area up to a date specified by the Central government.
For deep-seated minerals, which occur at a depth of more than 200 metres below the land surface, the Bill proposes a one-time extension of the area covered under a mining or composite lease.
The leased area may be extended by up to 30 per cent of the existing area under a composite licence and by up to 10 per cent under a mining lease. A composite licence provides rights for both prospecting and mining.
The Bill further proposes the establishment of an authority for registration and regulation of mineral exchanges. A mineral exchange has been defined as a registered electronic trading platform or marketplace for trading minerals and metals.
The amendments are aimed at broadening the mineral resource base available to miners, encouraging exploration and development of critical minerals, and creating greater flexibility in the use and trading of mineral resources.
The National Co-operative Development Corporation (Amendment) Bill, 2026, was also passed in the Rajya Sabha on Wednesday. The Bill was passed in the Lok Sabha on Tuesday.
The Kerala (Alteration of Name) Bill, 2026, was also passed in the Rajya Sabha on Wednesday after being passed in the Lok Sabha on Tuesday.
The Tribunals Reforms Bill, 2026, was passed in the Rajya Sabha on Tuesday. The Bill seeks to improve the functioning of tribunals and ensure transparency and uniformity in the appointment and service conditions of tribunal members. It also proposes the establishment of a National Tribunals Commission.
Meanwhile, the Foreign Contribution (Regulation) Amendment Bill, 2026, was on Wednesday referred to a Joint Parliamentary Committee (JPC) for detailed examination amid strong Opposition demands for its withdrawal, with Congress, Samajwadi Party and Trinamool Congress leaders alleging that the proposed changes could be used to target NGOs, minority institutions and organisations receiving foreign contributions.
However, the government defended the legislation and said the proposed amendments seek to ensure that foreign funds are used transparently and without compromising the national interest.
The Bill was formally referred to a 31-member JPC after Union Minister of State (MoS) for Home Affairs Nityanand Rai moved a motion in the Lok Sabha. The committee will comprise 21 members from the Lok Sabha and 10 from the Rajya Sabha and has been tasked with conducting an in-depth examination of the legislative provisions.
August 13 marks the scheduled last day of the Monsoon Session of Parliament. (ANI)