In a strategic move, the Indian government is set to push amendments to the Mines and Minerals (Development and Regulation) Act (MMDR). The legislation, slated for parliamentary approval shortly, aims to fortify the country’s supply of vital materials like lithium, copper, cobalt, and rare earths by enabling state funding for overseas acquisitions. These minerals are indispensable to the nation’s high-tech, aerospace, defense, and renewable energy ambitions.
Expanding the National Mineral Exploration Trust’s Mandate
The National Mineral Exploration Trust (NMET), which currently holds over ₹6,000 crores collected via royalty levies, will be broadened to include “development” in its name. This change empowers it to finance not just exploration but also acquisition and development of critical mineral assets abroad.
Streamlining Domestic Mining Operations
To modernize domestic operations, the Bill proposes key reforms including:
- Permitting lump-sum sales of low-grade mineral dumps from captive mines—resources previously unusable under current regulations.
- Allowing one-time permitting to extend existing leases to contiguous areas (up to 10%) if new critical minerals are discovered nearby.
The Strategic Imperative: Battling Supply Chain Vulnerability
India’s urgency is heightened by global instability in critical minerals, particularly after China curtailed exports of rare earth-derived permanent magnets—vital components in the electric vehicle, medical, and renewable energy sectors. India previously imported over 53,000 metric tons of such magnets in FY 2024–25.
To reinforce supply resilience, the government also unveiled a ₹3,500–5,000 crore incentive scheme supporting domestic production of rare earth minerals and magnets—expected to be approved in the coming weeks.
Expert Perspective
A senior government official emphasized:
“The amendment will address the core issue of critical mineral raw material availability.”
What It Means: A Tech Magazine Take
India’s policy recalibration marks a tactical shift—leveraging legal reform and financial tools to transition from dependence to self-reliance in critical resources. For readers focused on tech and industrial development, the implications are profound:
| Objective | Impact |
|---|---|
| Mitigate dependency | Funding overseas assets ensures strategic resource access |
| Maximize domestic utilization | Legalizing sales of low-grade dumps unlocks untapped value |
| Streamline exploration | Lease extensions accelerate resource scaling |
| Foster supply-chain sovereignty | Incentives fuel local production of rare earths |
These legal mechanisms lay the groundwork for India’s evolution as a critical minerals hub, supporting clean energy technologies and advanced manufacturing.