Why in news
- The Union Government formally notified provisions under the amended MMDR framework amid fiscal objections raised by mineral-rich States.
What is the MMDR Act, 1957?
- Principal central legislation governing the grant of mining leases, prospecting licenses, and development of major and minor minerals in India.
- Empowers the Union Government to regulate mineral development while States retain land ownership and collect royalties.
Key changes notified
- Centralizes auction processes and terms for critical and strategic minerals to streamline supply chain security.
- Restricts unilateral state-level levy modifications on mineral-bearing land beyond statutory royalty caps.
Why it matters
- Highlights ongoing federal conflicts regarding State powers to levy taxes on mineral rights following recent Constitution Bench interpretations.
- Impacts revenue autonomy of resource-rich States and private investment certainty in critical mineral exploration.
Key terms
Royalty
A statutory payment made by a mining lease holder to the state resource owner based on the volume or value of mineral extracted.
Critical Minerals
Minerals essential for high-technology, clean energy, and defense applications whose supply chains face severe disruption risks.
Prelims facts
- State legislative powers over mineral development under Entry 23 of the State List are subject to Union regulation under Entry 54 of the Union List.
Mains discussion
- Examine the fiscal federalism implications of central regulatory control over critical minerals versus State taxation rights.
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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2026 · Q95 · General Studies · 2 marks
Which of the following statements about Rare Earth Elements (REEs) and Critical Minerals is/are correct? 1. Modern technological innovations including Artificial Intelligence, robotics and space exploration extensively utilise Rare Earth Elements (REEs). 2. China has the highest share in mining of REEs followed by India. 3. The Government of India launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector. 4. Rare Earth Elements are a set of 13 metallic elements. Select the answer using the code given below: -
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?