The Centre has announced a comprehensive review of the National Mineral Policy, 2019, establishing a nine-member committee chaired by the Additional Secretary in the Mines Ministry to undertake the revision. According to sources, the panel has been tasked with reviewing the policy in light of recent developments and emerging requirements, identifying provisions that need modification, and recommending a comprehensive revision of the policy. The committee has been asked to submit its recommendations within two months of its constitution, reflecting the urgency of updating the current framework.
The review is specifically focused on critical minerals, recycling, and deep-sea resources to align with evolving sector demands. As per industry experts, the revision has become imperative due to significant changes in the mineral sector and the emerging strategic importance of critical and strategic minerals. B K Bhatia, mining industry expert and former Director General of the Federation of Indian Mineral Industries (FIMI), emphasized that the revised policy should provide a forward-looking framework for unlocking India's mineral potential, attracting investment and advanced technologies, strengthening mineral security and enhancing the contribution of the mining sector to the national economy. The policy will also address the country's needs in critical minerals, exploration and responsible mining.
The government has successfully passed the Mines and Minerals (Development and Regulation) Amendment Act, 2026, marking a significant step in modernising India's mineral governance. This comprehensive overhaul of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) aims to ensure a stable and uniform fiscal regime, strengthen mineral exploration, critical mineral security and sustainable resource development. The Act incorporates ease of living and ease of doing business reforms across the mining sector, building upon the Centre's efforts to review the nation's regulatory landscape.
The Act addresses the critical issue of unregulated and varying State levies that are steadily eroding the viability of mining, raising costs across industry and households alike. States currently impose around 14 taxes, charges and fees on mining, including royalty, auction premium, dead rent, DMF payments, GST and transit fee, with some States additionally taxing mineral-bearing lands at rates as high as 20 percent. The MMDR Amendment Act, 2026 establishes a single, Centre-directed tax framework under New Section 9D, where States cannot impose new levies except under conditions set by the Central Government. All pending retrospective dues are now declared invalid, providing relief to the mining sector and ensuring a fair and equal framework for all miners.
The reforms have delivered substantial results for state revenues, with mineral revenue accruing to States rising by 354 percent since 2014 under a transparent, auction-based regime. States have received more than ₹7 lakh crore, including coal, compared to modest revenues before 2014 when the sector was marked by discretionary and non-transparent grant and renewal of concessions. The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and 656 District Mineral Foundations (DMFs) continue to support local welfare, including 106 in aspirational districts, with full DMF amounts going to local projects for roads, hospitals, schools, drinking water and better living conditions.
