An inter-ministerial panel is being tasked with drafting a modern replacement for India’s principal mining law as the government seeks to simplify regulation and attract investment.
India’s government is considering a sweeping rewrite of the Mines and Minerals (Development and Regulation) Act, 1957, in a move that could replace the country’s principal mining law with a more modern framework, according to sources cited by News18 and other Indian media. The plan is intended to fold in ease of living and ease of doing business reforms, while also reflecting the sector’s role in economic growth, technology development and the government’s longer-term vision for Viksit Bharat by 2047.
According to the reports, an inter-ministerial panel chaired by the mines additional secretary will prepare the draft legislation. The committee is expected to examine the current law in full, study international best practice and consult stakeholders, including state governments, before producing a bill. The aim is to simplify the language of the existing statute and tighten its structure so it is easier to apply and enforce.
The MMDR Act is the central law governing mines and minerals in India, with the Centre responsible for major minerals and state governments overseeing minor minerals. Under the current system, states grant prospecting licences and mining leases within a framework set by the Centre, which also determines royalty rates. Reuters has previously reported that the government has been steadily adjusting the mining regime in recent years to improve investment conditions and align the sector more closely with national industrial policy.
The proposal comes as Parliament has already been asked to consider wider amendments to India’s mining framework. Business Standard reported in August that a separate amendment bill sought tighter Union control over mineral-bearing land and limits on state taxes, cesses and other levies linked to mineral rights, while other reports said the government sees the broader reform drive as a way to support investment, boost output and improve fiscal certainty for miners. Officials have also argued that the changes would preserve the large revenue share that mineral-rich states receive from mining activity.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
