Parliament Question: Mines and Minerals Development and Regulation MMDR Amendment Act, 2025

GOVERNMENT OF INDIA MINISTRY OF MINES RAJYA SABHA UNSTARRED QUESTION NO. 2665 ANSWERED ON 16.03.2026 MINES AND MINERALS DEVELOPMENT AND REGULATION MMDR AMENDMENT ACT, 2025

2665. SHRI RAJIB BHATTACHARJEE:

SHRI NARHARI AMIN:

SHRI SHAMBHU SHARAN PATEL:

Will the Minister of MINES be pleased to state:

(a) the manner in which the MMDR Amendment Act 2025, new Mineral (Auction) Rules, 2026 have helped in simplifying auction process for deep-seated minerals;

(b) measures being taken to de-risk high-cost exploration through the National Mineral Exploration and Development Trust (NMEDT);

(c) reason for Government's proposed part-lease execution model for mining blocks, and the manner in which this will prevent delays caused by pending forest clearances;

(d) whether Government intends to expand scope of the Exploration Licence regime to include offshore areas under the new 2026 resolution; and

(e) if so, the details thereof? ANSWER THE MINISTER OF STATE FOR MINES AND COAL (SHRI SATISH CHANDRA DUBEY)

(a): Mines and Minerals (Development and Regulation) Act, 1957 [MMDR Act] has been amended through MMDR Amendment Act, 2025 with effect from 01.09.2025. Through the said amendment, State Governments have been empowered to allow one-time extension of the area under an existing mining lease (upto 10 percent) or existing composite licence (upto 30 percent) in respect of deep-seated minerals by including contiguous area on additional payment prescribed by the Central Government. Further, the Mineral (Auction) Rules have been amended with effect from 29.01.2026 to allow Insurance Surety Bonds as means of security instrument for bid security and performance security for auction of mineral blocks. These reforms have simplified auction process including for deep-seated minerals.

(b): The Central Government has launched a scheme under National Mineral Exploration and Development Trust (NMEDT) for holders of exploration licences with partial reimbursement of exploration expenses upto 50 percent of direct cost with ceiling of ₹20 Crores. A scheme has also been launched under NMEDT for holders of composite licences with partial reimbursement of exploration expenses upto 50 percent of direct cost incurred for exploration with ceiling of ₹8 Crores.Furthermore, NMEDT also provides Exploration Incentive (EI) of 25 percent of the approved cost of the project for G4 items in Greenfield areas for gold, base-metals, other precious minerals, strategic / critical minerals and fertilizer minerals if the block gets upgraded from G4 to G3 Stage.

(c): Part execution of mining lease separately for non-forest area would facilitate faster operationalization of mines.

(d) & (e): Presently there is no such proposal under consideration. *****