Why in news
- The Ministry of Mines has initiated plans to overhaul the parent mining statute to streamline regulatory approvals and modernise exploration rights.
Key terms
District Mineral Foundation
A statutory non-profit body established in mining districts to work for the interest and benefit of persons affected by mining activities.
Critical Minerals
Mineral resources essential for modern technologies and economic security that face higher risks of supply chain disruption.
National Mineral Exploration Trust
An autonomous body established under the MMDR Act to fund regional and detailed mineral exploration across India.
Royalty
Statutory payment made by mining leaseholders to the government based on the value or quantity of minerals extracted.
What is the MMDR Act, 1957?
- It is the primary central legislation governing the development, regulation, and leasing of mineral resources in India, excluding petroleum and natural gas.
- Under the Act, ownership of minerals located within State boundaries rests with the respective State governments, while the central government regulates major mineral policies and offshore mining.
Key proposed changes and reform trajectory
- Transition from piecemeal legislative amendments toward a newly consolidated mining code designed to boost private sector participation in deep-seated and critical minerals.
- Earlier amendments introduced competitive auctioning for mining leases and established the National Mineral Exploration Trust (NMET) alongside District Mineral Foundations (DMF).
- The proposed framework aims to simplify statutory clearances, ensure security of tenure for explorers, and improve ease of doing business across the mineral supply chain.
Why it matters
- Securing critical and strategic mineral supply chains is essential for energy transition, green technology manufacturing, and national defence.
- It directly impacts federal revenue sharing and mineral royalties between the Union and mineral-rich States.
Prelims facts
- State governments own minerals within their boundaries, but the central government regulates major minerals under the MMDR Act, 1957.
Mains discussion
- Evaluate how reforming the MMDR Act can enhance private investment in critical mineral exploration while maintaining fiscal federalism.
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
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2025 · Q60 · General Studies · 2 marks
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