India Moves to Amend Mining Law for Global Critical Mineral Push and Domestic Efficiency – EQ
In Short : The government will seek Parliament’s approval this week to amend the MMDR Act, enabling state-funded overseas acquisitions of critical minerals like lithium and cobalt. Funding will come from the ₹6,000 crore NMET, to be renamed with an expanded mandate. The changes also streamline domestic mining, allowing mineral dump sales and lease expansions to boost resource efficiency.
In Detail : The government is set to introduce amendments to the Mines and Minerals (Development and Regulation) Act in Parliament this week, aiming to strengthen India’s access to critical minerals vital for its clean energy and industrial ambitions. The move is expected as early as Monday, signalling urgency in addressing the country’s mineral security.
The proposed changes will allow the government to use public funds to acquire overseas mineral assets, particularly for resources like lithium, cobalt, copper, and rare earth elements. These minerals are crucial for manufacturing batteries, electronics, and renewable energy infrastructure.
Financing for these acquisitions will come from the National Mineral Exploration Trust, which currently holds over ₹6,000 crore. The trust will be renamed to reflect its expanded role, which will now include development alongside exploration. This financial provision marks a shift in India’s approach to securing raw materials globally.
Alongside overseas acquisition powers, the amendments will introduce key reforms to domestic mining operations. One provision will allow state governments to sell mineral dumps from captive mines on a lump-sum basis, even if the materials are of low grade or previously deemed unsuitable for use.
Another change will simplify the process for expanding existing mining leases. Companies will be able to apply for the inclusion of newly discovered minerals or adjacent areas into their leases, with up to 10% expansion permitted through a single application process.
The reforms aim to reduce procedural delays, encourage investment, and maximise the utilisation of available resources. By unlocking mineral dumps and easing lease expansions, the government hopes to boost production efficiency and reduce dependence on imports.
These amendments come on the heels of the National Critical Mineral Mission launched in 2025, which targets enhanced domestic exploration and processing capacity. The mission recognises the growing strategic importance of critical minerals in a competitive global market.
India’s last major update to the MMDR Act occurred in 2023. Since then, global competition for critical minerals has intensified, with countries like China holding a dominant position in supply chains. This has prompted India to take proactive steps to secure its own access to these resources.
By aligning legislative changes with long-term industrial goals, the government aims to position India as a reliable player in the critical minerals sector. The proposed amendments signal a strategic blend of domestic efficiency and international outreach in the race for mineral security.
