Lok Sabha passes MMDR Amendment bill

The Mines and Minerals (Development and Regulation) Amendment Bill, 2023 was taken up for consideration and passed by the Lok Sabha on Friday. This bill proposes to empower the Central government to exclusively auction mining lease and composite licence for 26 critical minerals in the country.

This amendment to the Mines and Minerals (Development and Regulation) Act, 1957, “would facilitate, encourage and incentivise private sector participation in all spheres of mineral exploration for critical and deep-seated minerals”.

Under the existing framework, state governments auction mining blocks.


“Even in case of conduct of auction by the central government, the mineral concession shall be granted to the selected bidders by the state government only and the auction premium and other statutory payments shall accrue to the state government,” union mines minister Prahlad Joshi had said while introducing the bill in Lok Sabha.

According to the statement of objects and reasons for the bill, it would help hasten the pace of auction and early production of critical minerals such as lithium, cobalt, and graphite that are crucial for electric vehicles and batteries.

Nickel, platinum, and tin-bearing minerals are also among the 26 that are proposed to be brought under the ambit of the central government.

This would be the fifth amendment to the MMDR Act since 2014. Earlier changes included mandating e-auction for mineral resources, and allowing extension of mining leases which were expiring.