The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, is a legislative proposal that was passed by Parliament in August 2023 to amend the parent Mines and Minerals (Development and Regulation) Act, 1957. The original MMDR Act, 1957, was enacted to regulate the mining sector and secure state control over strategic mineral reserves. The 2023 Amendment was created to strengthen the exploration and extraction of critical minerals and attract private sector investment, particularly for deep-seated minerals, to reduce import dependence and support India's clean energy transition.
The mechanism of the amendment centers on three key changes. First, it introduces a new mineral concession called the Exploration Licence (EL), which is granted through competitive bidding by the State Government for up to five years and allows for reconnaissance or prospecting, or both, for specified minerals. Second, it removes six minerals—including lithium, beryllium, niobium, titanium, tantalum, and zirconium—from the list of atomic minerals in Part-B of the First Schedule of the Act, thereby opening them up for private sector participation. Previously, the exploration and mining of these minerals were reserved for government entities. Third, it empowers the Central Government to exclusively auction the mining lease and composite licence for certain critical minerals like cobalt and nickel, with the revenue still accruing to the State Governments.
This amendment connects directly to the MMDR Act, 1957, and its previous major amendment in 2015, which mandated auction-based allocation and established the District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET). The Bill's focus on critical minerals is also linked to India's commitment to achieving Net Zero by 2070 and securing supply chains for high-tech and electric vehicle industries.