Parliament Passes Mines and Minerals Bill to Boost India's Critical Mineral Sector

In a landmark move to modernize India’s mining sector, Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, on Tuesday, aiming to bolster domestic production of critical and strategic minerals while fostering sustainable development. The bill, which amends the 1957 Mines and Minerals Act, cleared the Lok Sabha on August 12 and was approved by the Rajya Sabha with a voice vote, following a robust debate involving 19 members.

Union Minister of Coal and Mines G Kishan Reddy hailed the legislation as a cornerstone of the Modi government’s decade-long reforms in the coal and mining sectors. Highlighting India’s heavy reliance on imports for critical minerals like lithium, cobalt, and rare earths—essential for electronics, renewable energy, and defense—Reddy emphasized the bill’s focus on enhancing domestic exploration and securing overseas supplies. “With rising global demand, we are committed to reducing import dependency and strengthening our economic security,” he said during the Rajya Sabha debate.

A key feature of the bill is the transformation of the National Mineral Exploration Trust into the National Mineral Exploration and Development Trust, expanding its mandate to fund exploration and mining activities both in India and abroad. This aligns with India’s ambition to compete in the global mineral market, particularly against China’s dominance in rare earths, which controls 60% of global production and 85% of processing capacity.

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BJP MP Kiran Choudhary called the bill a “forward-looking reform” that addresses outdated laws, fragmented leases, and lack of accountability in India’s mining sector, the world’s third-largest in mineral wealth. “This is about securing India’s economic future through transparent and sustainable development,” she said, noting provisions for community participation and welfare in mining-affected areas. The bill also streamlines environmental clearances and aims to curb illegal mining, including sand extraction, which has depleted groundwater in states like Tamil Nadu.

Opposition MPs, including those from Congress and DMK, raised concerns about environmental impacts and tribal rights, urging stronger safeguards. However, the bill’s passage, despite an opposition walkout over unrelated issues, underscores its bipartisan support. The legislation is expected to attract investment, create jobs, and align with PM Modi’s vision of Viksit Bharat by 2047, positioning India as a global leader in critical minerals.

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