Lok Sabha Passes Mines and Minerals Amendment Bill: Boost for Exploration and Ease of Doing Business

In a significant legislative development, the Lok Sabha has passed the Mines and Minerals (Development and Regulation) Amendment Bill, marking a major reform aimed at boosting India’s mining sector, attracting private investment, and streamlining operational procedures. The Bill seeks to amend key provisions of the Mines and Minerals (Development and Regulation) Act, 1957, with a focus on enhancing transparency, promoting exploration, and encouraging technological advancements in mining.

Key Highlights of the Amendment

The Mines and Minerals Amendment Bill introduces several crucial changes:

1. Opening Exploration to Private Sector – The Bill allows private companies to undertake exploration activities for various minerals, ending the government monopoly in certain areas. This is expected to bring in modern technology, efficiency, and capital from the private sector.
2. Simplified Licensing – The amendment streamlines the process of granting exploration licenses, reducing bureaucratic delays and ensuring faster approvals for mineral projects.
3. Boost to Critical Minerals Mining – With the global demand for critical minerals like lithium, cobalt, and rare earth elements on the rise, the Bill prioritises exploration and mining of these resources, which are vital for renewable energy technologies and electric vehicles.
4. Extended Lease Periods – The Bill provides clarity on lease tenure and renewal terms, giving mining companies more operational stability and investment confidence.
5. Strengthened Regulation for Sustainable Mining – The amendments reinforce environmental and safety regulations to ensure that mining operations remain sustainable while balancing economic growth with ecological preservation.

Government’s Rationale

Union Minister for Coal and Mines, while introducing the Bill, stated that India needs to scale up domestic mineral production to reduce import dependency and fuel industrial growth. He stressed that the amendment would create jobs, bring foreign investment, and position India as a key global mining player.

“This Bill is not just about mining—it’s about building a foundation for India’s economic future. With the right balance of ease of doing business and strong regulation, we aim to make the sector globally competitive,” he said.

Opposition Concerns

While the Bill saw broad support, some opposition members expressed concerns about environmental risks, displacement of local communities, and the possibility of over-exploitation of natural resources. They urged the government to strengthen rehabilitation policies and ensure fair compensation to affected populations.

Environmental activists have also called for strict monitoring mechanisms to ensure mining does not harm forests, water bodies, and biodiversity-rich areas.

Economic and Strategic Impact

The passage of this Bill comes at a time when India is seeking to boost its manufacturing and infrastructure sectors. A robust mining framework is crucial for industries such as steel, cement, automobiles, electronics, and renewable energy.

Experts believe the reforms will:

• Increase domestic mineral supply, reducing reliance on imports.
• Attract foreign and domestic investment through predictable regulations.
• Foster innovation in mining technologies and exploration methods.
• Enhance India’s strategic positioning in the global supply chain for critical minerals.

The Road Ahead

With the Bill now passed in the Lok Sabha, it will move to the Rajya Sabha for consideration. Once it receives final approval and Presidential assent, the government plans to roll out detailed rules and guidelines for implementation.

Industry leaders have welcomed the move, calling it a “game-changer” for the sector, provided the reforms are implemented effectively and in an environmentally responsible manner.

The Mines and Minerals Amendment Bill thus marks a pivotal step towards unlocking India’s vast mineral potential—balancing the twin goals of economic development and sustainable resource management.