MINES & MINERALS (DEVELOPMENT & REGULATION) AMENDMENT BILL, 2025
Context
- On August 19, 2025, the Rajya Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025.
- The Lok Sabha had already passed it on August 12, 2025.
- The bill was passed amidst a walkout by Opposition members, who demanded a discussion on unrelated issues (like Bihar’s voter list revision).
WHAT THE BILL DOES?
- Amends the Mines and Minerals (Development and Regulation) Act, 1957.
- Empowers mining leaseholders to mine critical minerals (e.g. lithium, cobalt, nickel) without paying additional royalty.
- Facilitates creation of mineral exchanges to promote market development and trading of minerals.
- Renames the National Mineral Exploration Trust as the: National Mineral Exploration and Development Trust.
SIGNIFICANCE OF THE BILL
- Supports India’s strategic needs: critical minerals are vital for:
- Electronics (phones, laptops)
- Aerospace
- Green energy (EV batteries)
- Agriculture
- Space technology
- India currently depends heavily on imports for these minerals — the bill aims to reduce this reliance.
- 24 critical minerals identified by the Centre for focused development.
INSTITUTIONAL & POLICY REFORMS
- Launch of the National Critical Mineral Mission:
- ₹34,000 crore outlay
- Objective: Increase domestic production, including from offshore areas.
- Push for transparency and accountability in the mining sector.
- Emphasis on creating a market ecosystem (like stock exchanges) for minerals.
POLITICAL REACTIONS
- Union Minister G. Kishan Reddy:
- Called the bill part of “revolutionary reforms” under the Modi govt.
- Blamed past UPA regime for corruption in mining.
- Opposition:
- Mallikarjun Kharge (Congress): Demanded unrelated discussion; led to walkout.
- John Brittas (Left): Criticized the bill as “far-reaching”, asked it be sent to a select committee.
- Parliamentary concern raised on:
- Expunged remarks being shared on social media/Sansad TV — calls for stricter controls on House proceedings being leaked.
WHY THIS MATTERS?
- Economic Security: Boosting domestic production of critical minerals will reduce import bills and dependency on foreign nations (notably China).
- Geopolitical Angle: Control over critical minerals is key in global power play (example: lithium wars).
- Energy Transition: These minerals are key to India’s net-zero goals, battery storage, and EV development.
- Ease of Doing Business: The bill reduces bureaucratic hurdles for leaseholders, encouraging private sector participation.
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