MMDR Amendment Act, 2026

Key Highlights:

• The MMDR Amendment Act, 2026 amends the Mines and Minerals (Development and Regulation) Act, 1957, establishing a uniform fiscal framework for the mineral sector.
• It introduces New Section 9D, prohibiting State Governments from imposing fresh taxes or levies on mineral rights or lands, except under Central Government prescribed conditions.
• The Act invalidates past unpaid State levies on mineral rights, aiming to bring predictability and rationality to mineral taxation.
• This reform addresses the multiplicity of State levies, which previously eroded mining viability and increased costs across industries.
• It seeks to boost domestic mining, attract long-term investment, and reduce India's mineral import dependence, which was ₹10,12,529 crore in FY 2025-26.

Detailed Insights:

• The amendment aims to ensure mining viability, which is crucial for energy security and the supply of critical minerals.
• It addresses the issue of around 14 different taxes, charges, and fees imposed by States on mining, which led to market fragmentation.
• High and varying State levies on critical and atomic minerals previously made their extraction uneconomical and created disparity.
• Despite the new limits, State revenues from mineral production have grown by 354% since 2014, with nearly 90% of mining revenue accruing to them.
• Reforms since 2014 include competitive e-auctions, leading to 723 major mineral blocks being auctioned across 17 States.
• The National Critical Mineral Mission (NCMM), approved in January 2025 with an outlay of ₹16,300 crore, focuses on securing critical mineral supply.
• Khanij Bidesh India Limited (KABIL) is actively involved in overseas sourcing, securing lithium exploration rights in Argentina.
• Welfare for mining-affected communities is ensured through Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and District Mineral Foundations (DMFs).

Key Concepts Involved:

• Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957): The principal legislation governing the mining sector in India.
• MMDR Amendment Act, 2026: Amends the 1957 Act to standardize fiscal levies and promote investment in the mineral sector.
• National Critical Mineral Mission (NCMM): A mission to ensure a secure supply chain of critical minerals essential for India's economic growth and national security.
• District Mineral Foundations (DMFs): Non-profit trusts established in mining districts to work for the welfare of people and areas affected by mining-related operations.
• Khanij Bidesh India Limited (KABIL): A joint venture company formed to identify, acquire, develop, and process critical and strategic minerals in overseas locations.