Parliament Greatly Passes Mines and Minerals Amendment Bill 2025 to invest in Mining Industry

One of the critical steps taken by the Indian Parliament last August is the Mines and Minerals (Development and Regulation) Amendment Bill, 2025 that deals with changing the mining industry. It is meant to enhance transparency, increase production and the commercial trading of industry minerals and technology with the amendment of the 1957 Act.

Key Provisions of the Bill:

• Critical Minerals Push: leaseholders could add critical and strategic minerals, such as lithium, cobalt, nickel, gold and silver, to their already held leases with no requirement to pay any extra royalties, bringing forward their recovery for use in electronics, aerospace and space technology.
• Sale from captive Mines: The cap of 50 percent on sale of excess minerals extracted from captive mines has been done away with. Mines can now dispose of their entire surplus production and states can allow the sale of mineral dumps, leading to better resource optimization.
• Broadened Explore Trust: National Mineral Exploratory Trust become The National Mineral Exploration and Development Trust. Its funding lifted from 2% to 3% of royalties from lessee companies with a broader remit to now help fund offshore and overseas exploration projects.
• Large Lease Areas: Large (b) A one-time extensions of maximum as 10 for mining leases and 30% for composite licence area will be limit (MLA)LFA of mining lease may be allowed for deep seated mineral (below 200 meter) not exceeding 10% for mining leases and 30% for je composite licence* with due consideration to large area requiring higher depth of GC excavations for conservation and exploration of mineral deposits at greater depth.
• Mineral Exchanges: The Bill makes provisions for Regulated Mineral Exchanges, to establish transparent online bourses for trading minerals and metals.

Legislative Journey and Reaction:

The Lok Sabha passed the Bill on August 12 and the Rajya Sabha on August 19, 2025. The Opposition walked out during the debate on the Bill over the fears of its impact, while the government hailed it as a “revolutionary” step for the sector.

Expected Impact:

The reforms are expected to spur minerals output, discourage corruption, and promote efficient markets. This strategic shift is also in sync with the National Critical Mineral Mission of India, with a whopping 34,000 crore outlay earmarked to ensure access to these critical resources for its technology & energy security.