MMDR Amendment to Bring Long Term Stability in Major Minerals Sector

Key Highlights:

• The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was passed by Parliament on August 13, 2026.
• The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957 to bring long-term stability to the major minerals sector.
• It ensures that states retain their rights over land, minerals, and the power to tax minor minerals.
• Approximately 90% of total mining taxes and statutory payments continue to accrue to the states.
• India imported minerals worth ₹10,12,529 Crores in FY 2025-26, highlighting the need for domestic production.

Detailed Insights:

• The amendment aims to provide certainty, stability, and predictability in the fiscal regime of the mineral sector, encouraging increased investment.
• This legislative change is expected to support the goals of Atmanirbhar Bharat and contribute to the vision of Viksit Bharat 2047.
• States currently levy around 14 types of taxes and charges on mining operations, including royalty, auction premium, and District Mineral Foundation (DMF) contributions.
• From FY 2015-16 to FY 2025-26, major mining states received over ₹5 lakh crores, while the Centre received ₹82,000 crores.
• The introduction of an auction regime in 2015 has provided states with a significant additional revenue source, with over ₹96,000 crores collected as auction premium from 2020-21 to 2025-26.
• A cohesive national strategy for mineral management is crucial to prevent unchecked regional disparities in state-level taxation from making domestic minerals uncompetitive.

Key Concepts Involved:

• Mines and Minerals (Development and Regulation) Act, 1957: The principal legislation governing the mining sector in India.
• Mines and Minerals (Development and Regulation) Amendment Bill, 2026: The recent amendment to the 1957 Act, aimed at fiscal stability and investment.
• District Mineral Foundation (DMF): A trust established in mining-affected districts to work for the benefit of persons and areas affected by mining-related operations.
• Auction regime: A system introduced in 2015 for allocating mineral blocks through competitive bidding, enhancing transparency and state revenues.