NEW DELHI — India’s Ministry of Mines has introduced sweeping changes to mining regulations aimed at accelerating the exploration and production of critical minerals used in electric vehicles, advanced electronics, and defense systems, according to an official statement issued Monday.
The updated Minerals Concession Rules, 2026, which took effect March 30, establish a clearer framework for expanding mining areas and integrating additional minerals into existing leases. The changes are designed to improve efficiency in extracting deep-seated and strategically important resources that are often difficult and costly to access.
The reforms follow amendments to the Mines and Minerals (Development and Regulation) Act, 1957, through the MMDR Amendment Act, 2025. Officials said the changes are intended to strengthen domestic mineral supply chains and support India’s broader push for self-reliance in key industrial sectors.
Under the new rules, mining lease and composite license holders can apply for a one-time expansion to include adjacent, or contiguous, areas. These expansions are capped at 10 percent of the existing lease area for mining leases and 30 percent for composite licenses. Companies operating auctioned leases will be required to pay 10 percent of the auction premium on minerals extracted from the newly added area, while those holding non-auctioned leases must pay an amount equivalent to the royalty on minerals produced there.
Officials said allowing contiguous area expansion would enable more efficient extraction of deep-seated minerals that might otherwise remain unviable under separate licensing arrangements.
The rules also streamline the process for adding new minerals, including minor minerals, to existing leases. State governments are required to approve such requests within 30 days. No additional charges will apply when including critical, strategic, or deep-seated minerals listed under the law, a move intended to encourage production of resources that are scarce and complex to mine.
In another key provision, the updated rules outline how major minerals can be incorporated into leases originally granted for minor minerals prior to the 2025 amendments. For future leases, state governments must ensure that areas are explored to at least the G3 level before granting rights for minor minerals, excluding sand. If exploration uncovers major minerals, those areas must be auctioned as major mineral blocks.
The reforms also remove previous restrictions on the sale of minerals from captive mines. Operators will now be allowed to sell excess production after meeting the needs of their associated end-use plants operating at full capacity. If plants are running below capacity, sales will be limited to the quantity consumed annually by the facility. The government said this measure is expected to improve market supply, particularly benefiting micro, small, and medium enterprises.
Officials said the updated regulatory framework is designed to simplify procedures, improve ease of doing business, and increase output of critical and strategic minerals. The government added that the rules were finalized following consultations with state governments, central ministries, industry groups, and other stakeholders. (Source: IANS)
