Mines and Minerals (Development and Regulation) Amendment Bill, 2026

MMDR Act, 1957 (Full Name)

The Mines and Minerals (Development and Regulation) Act, 1957; the principal central law governing the development and regulation of mines and minerals.

Mineral Area Development Authority v. Steel Authority of India (Citation)

(2024) 10 SCC 1.

Mineral Area Development Authority Case (Bench Size & Date)

Decided by a nine-judge Constitution Bench in July 2024 by an 8:1 majority.

Mineral Area Development Authority Case (State Taxation Rights)

Held that States are competent to tax mineral rights under Entry 50 and mineral-bearing lands under Entry 49.

Mineral Area Development Authority Case (Status of Royalty)

Held that royalty under the MMDR framework is a contractual payment for enjoyment of mineral rights and not a tax.

Mineral Area Development Authority Case (Retrospective Recovery)

Permitted States to recover past tax dues retrospectively from 1 April 2005.

Entry 54 of the Union List

Permits Parliament to regulate mines and mineral development where it declares such regulation expedient in the public interest.

Entry 23 of the State List

Gives States power over mines and mineral development, subject to Union legislation.

Entry 50 of the State List

Empowers States to tax mineral rights, subject to limitations imposed by Parliament.

Entry 49 of the State List

Covers taxes on land, which includes mineral-bearing land.

Working Scheme: Centre's Role

Regulates major minerals and fixes royalty rates.

Working Scheme: States' Role

Grants mining leases and collects royalty from lessees.

Working Scheme: Minor Minerals

Largely regulated by the States.

MMDR Act Section 2 Amendment

Extends the Union declaration from regulation of mines to regulation of mines and mineral-bearing lands.

MMDR Act Section 3 Amendment

Defines "mineral-bearing land" as land having mineral content in accordance with parameters prescribed under Section 5.

MMDR Act Section 9D (General Prohibition)

Bars a State Government from imposing any tax, cess or other levy on mineral rights or mineral-bearing lands.

MMDR Act Section 9D (Scope of Bar)

Covers levies based on mineral quantity, mineral value, royalty payable, or any other basis.

MMDR Act Section 9D (Exceptions)

Such levies are permissible only in accordance with conditions or restrictions prescribed by the Central Government.

MMDR Act Section 9D (Validity of Pre-existing Levies)

Levies not deposited with or recovered by a State before commencement stand invalid.

MMDR Act Section 9D (Non-Obstante Clause)

Overrides any other law, judgment, decree, or court order.

MMDR Act Section 9D (Refund Status)

Amounts already deposited or recovered before commencement are not liable to be refunded.

MMDR Act Section 13 Amendment

Empowers the Central Government to frame rules prescribing the conditions and restrictions for State levies on mineral rights/lands.

2015 MMDR Amendment

Replaced discretionary grants with mandatory auctions, created the District Mineral Foundation (DMF) for welfare in mining-affected areas, created a trust for exploration funding, and stiffened penalties for illegal mining.

2016 MMDR Amendment

Defined "leased area" and permitted the transfer of captive leases granted otherwise than by auction.

2020 MMDR Amendment

Allowed companies without prior coal-mining experience to bid in coal and lignite auctions, widening participation and foreign direct investment (FDI).

2021 MMDR Amendment

Ended the captive and merchant distinction, allowing captive mines to sell up to 50% of annual production in the open market after meeting end-use requirements.

2023 MMDR Amendment (Critical Minerals)

Removed six critical minerals (lithium, titanium, beryllium, niobium, tantalum, and zirconium-bearing minerals and ores) from the list of 12 atomic minerals reserved for state agencies.

2023 MMDR Amendment (Licences)

Introduced exploration licences.

2025 MMDR Amendment (Mineral Exchange)

Created the Mineral Exchange for electronic trading of minerals, concentrates, and processed metals.

2025 MMDR Amendment (Captive Mines Cap)

Removed the 50% sale cap on captive mines.

How many taxes, charges, and fees do States levy on mining?

Around 14 (including royalty, auction premium, dead rent, DMF payments, GST, and transit fee)

What is the highest tax rate levied by some States on mineral-bearing lands?

Up to 20%

Which critical and atomic minerals are affected by State levies, making strategic projects uneconomical?

Graphite (critical) and Uranium (atomic)

What was the total value of mineral imports by India in FY 2025-26?

Rs 10,12,529 crore

What was the total value of iron ore exports from India in FY 2025-26?

Rs 15,136 crore

How many persons are employed directly and indirectly by the coal sector?

Over 5 lakh persons

How many workers does the non-coal mining sector support?

More than 1 crore workers

How many minor minerals remain entirely under State control?

Nearly 50 (e.g., sand, gravel, clay, granite, marble, gypsum)

How many major mineral blocks have been auctioned across 17 States since 2015?

723 blocks

How many major mineral blocks were auctioned and operationalised in FY 2025-26?

212 auctioned (record) and 36 operationalised

When was the National Critical Mineral Mission (NCMM) approved and what is its outlay?

Approved on 29 January 2025 with an outlay of Rs 16,300 crore up to FY 2030-31

Which two entities are working towards 1,200 critical mineral projects?

Geological Survey of India (GSI) and National Mineral Exploration and Development Trust (NMEDT)

Which company secured exclusive lithium exploration rights in Argentina?

Khanij Bidesh India Limited (KABIL)

What is the function of the Unified Mining Portal (UMP)?

It tracks the mineral block lifecycle from auction to operationalisation