Why in news
- The Central Government has officially notified rules under the Mines and Minerals (Development and Regulation) Act, raising federal fiscal concerns among States.
What is the MMDR Act, 1957?
- Central statute regulating the allocation, prospecting, and mining leases of major and minor minerals in India.
- Administered by the Ministry of Mines, it sets royalties, auction frameworks, and statutory payments like the District Mineral Foundation (DMF).
Key provisions and updates
- Notifies standardized operating procedures for mineral concessions and auction protocols across major mineral blocks.
- Formalizes royalty collection procedures and revenue distribution mechanics between the Centre and state exchequers.
Why it matters
- Federalism angle: Mineral-bearing States debate state taxation boundaries versus central statutory royalty ceilings.
- Mining efficiency: Impacts revenue realization and resource extraction timelines across key economic sectors.
Key terms
Mineral Royalty
Statutory payment made by a mining leaseholder to the state for extracting non-renewable mineral resources.
District Mineral Foundation
Non-profit trust set up in mining districts to work for the interest and benefit of persons affected by mining operations.
Prelims facts
- MMDR Act 1957 is the principal statute for mineral leasing and royalty frameworks in India.
Mains discussion
- Analyze the constitutional balance of fiscal powers between the Union and States regarding mineral resources.
Source: Hindu Business Line
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2025 · Q6 · General Studies · 2 marks
Consider the following statements: I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 critical minerals that it has identified. III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals. Which of the statements given above are correct? -
2023 · Q39 · General Studies · 2 marks
With reference to 'Scheduled Areas' in India, consider the following statements: 1. Within a State, the notification of an area as Scheduled Area takes place through an Order of the President. 2. The largest administrative unit forming the Scheduled Area is the District and the lowest is the cluster of villages in the Block. 3. The Chief Ministers of the concerned States are required to submit annual reports to the Union Home Ministry on the administration of Scheduled Areas in the States. How many of the above statements are correct? -
2022 · Q72 · General Studies · 2 marks
In India, what is the role of the Coal Controller's Organization (CCO)? 1. CCO is the major source of Coal Statistics in Government of India. 2. It monitors progress of development of Captive Coal/Lignite blocks. 3. It hears any objection to the Government's notification relating to acquisition of coal-bearing areas. 4. It ensures that coal mining companies deliver the coal to end users in the prescribed time. Select the correct answer using the code given below: -
2021 · Q2 · General Studies · 2 marks
With reference to casual workers employed in India, consider the following statements: 1. All casual workers are entitled for Employees Provident Fund coverage. 2. All casual workers are entitled for regular working hours and overtime payment. 3. The government can by a notification specify that an establishment or industry shall pay wages only through its bank account. Which of the statements given above are correct? -
2020 · Q7 · GS III · 10 marks
How does the draft Environment Impact Assessment (EIA) Notification, 2020 differ from the existing EIA Notification, 2006?