Mines and Minerals Amendment Bill Passed by Lok Sabha Amid Opposition Protests

The Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill 2025, which seeks to widen the scope of the National Mineral Exploration Trust and rename it as the National Mineral Exploration and Development Trust. The bill aims to increase the payment to the trust from 2% to 3% of the royalty payable.

The Lok Sabha has passed the Mines and Minerals (Development and Regulation) Amendment Bill 2025, which seeks to widen the scope and territorial domain of the National Mineral Exploration Trust (NMET). The bill aims to increase the payment to the trust from 2% to 3% of the royalty payable, renaming the trust as the National Mineral Exploration and Development Trust (NMEDT) [1].

The primary objective of the bill is to bolster India’s mineral sector, secure supply chains for critical resources, and align with the National Critical Mineral Mission amidst global disruptions and import reliance [1]. Key highlights of the amendments include:

1. National Mineral Exploration and Development Trust (NMEDT): The trust is renamed and its mandate expanded to include offshore and international exploration for critical minerals. The contribution from mining leaseholders will increase from 2% to 3% of royalty payable, which is expected to boost the trust’s annual corpus from ₹1,000 crore to ₹2,500 crore [1][2][3][4].

2. Mineral Exchanges: The bill proposes the establishment of electronic trading platforms for minerals, concentrates, and processed forms, including metals. These exchanges aim to create a transparent, dynamic market for price discovery [1][2][4].

3. Incentivizing Critical Mineral Extraction: The bill simplifies the inclusion of new minerals in existing mining leases. There will be no additional royalty payments for critical minerals listed in the Seventh Schedule or Part D of the First Schedule when included in an existing lease. A one-time extension of mining lease areas is permitted: up to 10% for deep-seated minerals (below 200 meters) and 30% for composite licenses [1].

4. Removal of Cap on Sale from Captive Mines: The 50% cap on mineral sales from captive mines is removed. State governments are also permitted to authorize the sale of old mineral dumps [1].

The bill also empowers the Central Government to promote the development of markets, including trading of minerals, its concentrate or its processed forms (including metals) through a mineral exchange. The Centre will have the authority to register and revoke mineral exchanges, with strict regulations to prevent cartelization, insider trading, circular trading, market manipulation, and other harmful practices [2][4].

By raising the NMET contribution rate and broadening its mandate, the government seeks to secure critical mineral supply lines and strengthen India’s strategic position. The proposed changes blend resource security with market efficiency, supporting the nation’s long-term mineral and economic goals [3][4].

References:
[1] https://visionias.in/current-affairs/news-today/2025-08-12/science-and-technology/mines-and-minerals-development-and-regulation-amendment-bill-2025-introduced-in-lok-sabha
[2] https://finance.yahoo.com/news/denison-mines-second-quarter-2025-131955156.html
[3] https://www.angelone.in/news/economy/centre-proposes-increased-nmet-funding-for-overseas-critical-mineral-acquisitions
[4] https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/centre-proposes-higher-nmet-contribution-to-fund-overseas-critical-mineral-acquisitions/articleshow/123239017.cms