The latest update to the critical mineral and deep-seated minerals supply chain comes in the form of the Mines and Minerals Amendment Bill, 2025, which was passed by the Rajya Sabha on 19th August during the monsoon session. The Bill amends the foundational Mines and Minerals (Development and Regulation) Act, 1957(MMDR), aiming to modernize India’s mining legal framework, particularly for identified critical and strategic minerals.
Critical minerals form the bedrock for essential inputs for modern technologies and lie at the centre of clean energy transitions for India. Minerals such as lithium, cobalt, nickel, and graphite play a central role in powering the shift to clean energy, forming the foundation for electric vehicles, renewable power systems, and energy storage solutions. Without steady access to these resources, progress toward renewable energy goals would face significant hurdles. At the same time, a range of rare earth elements underpins the modern digital economy. They are indispensable for everyday technologies like smartphones and computers, as well as for advanced applications in defense, communications, and high-end manufacturing.
Even though India possess significant mineral resources, it has historically been import-dependent for critical minerals; however, this reliance puts India in a vulnerable position due to increasing supply chain disruptions and geopolitical tensions in many parts of the world.
Evolution of India’s Critical Mineral Supply Strategy
To mitigate these risks, the government has pushed for exploration for critical minerals within national boundaries, pursuing a multi-pronged strategy to create more secure channels for critical minerals. In June 2023, the government released a list of 30 identified minerals that were of great importance for economic development and security. Subsequently, the MMDR Act was also amended to reduce the dependency on imported minerals and rare earth elements.
Earlier this year, the government also launched the National Critical Mineral Mission, which earmarks a budget of INR 16,300 and an expected investment of 18,000 crore, promoting its agenda for self-reliance and securing the critical mineral supply, including exploration. Under the mission, the Geological Survey of India has been tasked with conducting exploration on 1200 sites between 2024-25 to 2030-31. Another key recommendation was the creation of a Centre of Excellence on Critical Minerals (CECM), envisioned to provide continuous updates to the critical mineral list and ensure the adaptability of the national strategy.
The 2023 MMDR Amendment Act was the first step in explicitly addressing the deep-seated and critical minerals issue. It addressed the long-standing challenges around critical minerals and granted the central government the authority to auction mining rights for select minerals deemed vital to the national interest. The amendment also introduced a category of atomic and other minerals, allowing for central oversight of resources such as lithium, cobalt, and rare earths. The amendment also introduced the grant of a new mineral concession, the Exploration License (EL), to be granted through auction. The EL allows the licensee to undertake reconnaissance and prospecting operations for critical and deep-seated minerals. The government launched the 1st Tranche auction of exploration blocks in March 2025. The active exploration for critical minerals spanned six states: Maharashtra, Rajasthan, Bihar, Arunachal Pradesh, Karnataka, and Chhattisgarh. More recently, Mizoram and Assam have also been reported to be included in the states where exploration has been actively going on.
Key Provisions of the Amendment, 2025
The 2025 Amendment makes some pivotal changes and strategic shifts to the mining legislation. Some important changes include–
- One-Time Extension of Mining Leases: Under the new amendment, the holder of a mining lease of deep-seated minerals may apply for a one-time extension for the existing leased area and a contiguous area of ten percent. For holders of a composite license, the one-time extension can include the contiguous area of up to thirty percent.
- Changes to the National Mineral Exploration Trust: The new amendment to section 9C of the MMDR Act changes the scope of the National Mineral Exploration Trust, which shall now be called the National Mineral Exploration and Development Trust. The objective of the Trust shall be to use the funds accrued for regional and detailed exploration as well as the development of mines and minerals under the guidelines of the Central Government.
- Inclusion of Other Minerals in Mining Lease: The Act permits any holder of a mining lease to apply to the State government for inclusion of any other minerals in their existing mining lease. This inclusion will be based on a geological report in relation to the existing lease. The State Government can thereby permit the inclusion of such minerals within a period of sixty days on additional payment. The purpose of this is to increase the feasibility of mining for minor minerals, which may not be cost-effective for separate mining leases.
- Development of the Market: A key provision of the amendment act is to include section 18B, which mandates the central government to promote the development of the market, including trading of minerals, their concentrates, and processed forms through mineral exchanges. This shall pave the way for the creation of mineral exchanges in a digitalised, registered platform.
- Focus on Sustainable, Zero-Waste, Offshore, and Deep-Mining: The amendment pushes for the strengthening of sustainable processes and zero-waste mining.
The 2025 Amendment marks another key step in India’s resource management landscape. By strengthening and streamlining access to critical minerals, expanding exploration and development funding, and introducing regulated mineral exchanges, it positions India to strengthen domestic and international supply chains, reduce import dependency, and accelerate the transition to clean energy. At the same time, it opens up opportunities for private partnerships, technological innovation, and deep engagement in global mineral markets. If implemented effectively, along with environmental and social safeguards that protect the interests of communities that are impacted on the ground level, these interventions will shape India’s strategic, economic, and sustainable pathway for decades ahead.
