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

Key Highlights:

• The Mines and Minerals (Development and Regulation) Amendment Act, 2026 aims to establish a stable and rational tax structure for the mining sector.
• States currently receive approximately 90% of the revenue from mining operations, a share that will remain unchanged after the amendment.
• Reforms since 2015 include competitive e-auctions for mineral blocks, significant growth in mineral production, and the establishment of the National Critical Mineral Mission (NCMM).
• The 2015 amendment introduced District Mineral Foundations (DMFs) and the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) to share mining benefits with affected communities.
• The Act seeks to attract investment, boost critical mineral production, reduce import dependency, and contribute to the Viksit Bharat 2047 vision.
• The 2026 Amendment Act does not affect minor minerals, which remain under the exclusive regulation and control of State Governments.

Detailed Insights:

• The Act provides long-term fiscal certainty, crucial for attracting significant upfront capital investment required for mining projects.
• Competitive e-auctions, introduced in 2015, ended discretionary allocation, leading to 723 major mineral blocks being auctioned across 17 states.
• India's mineral production has seen substantial growth, with major mineral production rising by 26.8% in FY 2025-26, and coal output exceeding one billion tonnes annually.
• The National Critical Mineral Mission (NCMM), approved in January 2025 with an outlay of ₹16,300 crore, focuses on securing critical minerals, including overseas sourcing by Khanij Bidesh India Limited (KABIL).
• Incentives for critical mineral recycling (₹1,500 crore) and support for Critical Mineral Processing Parks (CMPPs) in four states aim to enhance processing and research capacity.
• Exploration activity has increased nearly 200 times since 2014, supported by a wider ecosystem and increased funding for the National Mineral Exploration and Development Trust (NMEDT).
• Operational simplifications include one-time area extensions for leases, removal of sales caps for captive mines, and the Unified Mining Portal (UMP) for digital monitoring.
• DMFs and PMKKKY have established 656 foundations, utilizing collected funds for local development projects like roads, hospitals, and schools in mining-affected areas.
• By preventing cascading tax effects from state levies, the Act aims to lower input costs for industries like steel, cement, and power, ultimately benefiting common citizens.

Key Concepts Involved:

• Mines and Minerals (Development and Regulation) Amendment Act, 2026: Legislation aimed at reforming India's mining sector for stability, investment, and production.
• District Mineral Foundation (DMF): A non-profit trust established in mining-affected districts to work for the benefit of persons and areas affected by mining-related operations.
• National Critical Mineral Mission (NCMM): A government initiative focused on ensuring the availability of critical minerals essential for economic development and national security.
• Viksit Bharat 2047: India's vision to become a developed nation by 2047, emphasizing economic growth, technological advancement, and improved living standards.