Parliament Passes Landmark Mines and Minerals Amendment Bill to Boost Critical Mineral Exploration

The Indian Parliament on Thursday, August 13, 2026, successfully passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, marking a significant legislative step towards reforming the nation's critical mineral sector. The Bill, which had previously been approved by the Lok Sabha on Wednesday, aims to introduce a more streamlined and predictable fiscal framework for major minerals across the country. A core objective of this amendment is to restrict the powers of state governments to impose various taxes and cesses on mineral rights and mineral-bearing lands, a move that has drawn criticism from some states concerned about fiscal federalism. However, the Union Government asserts that the legislation is crucial for fostering greater certainty and stability, which are vital for attracting increased investment in domestic mineral exploration and development, particularly for strategic minerals such as lithium, graphite, nickel, cobalt, gold, and silver. The new law also grants greater flexibility to existing mining leaseholders, allowing them to include additional minerals in their leases without requiring extra payments for critical and strategic minerals. Furthermore, it removes the existing 50% ceiling on the sale of minerals produced from captive mines, thereby enhancing operational flexibility for mine operators. The Ministry of Mines has clarified that the amendment aims to ensure a uniform regulatory environment, essential for India's economic growth and its vision of 'Atmanirbhar Bharat' (self-reliant India) and 'Viksit Bharat 2047'.