Upper house passes MMDR Amendment bill

The Rajya Sabha passed the Mines and Minerals (Development and Regulation) (MMDR) Amendment Bill, 2023 on Wednesday. With this, both houses of the Parliament have cleared the bill and it will be sent for the President's assent.

This amendment to the MMDR Act, 1957 empowers the Central government to auction mines and ramp up production of 26 critical minerals in India. Lithium, cobalt, and graphite output may get a fillip as the centre hopes to speedily conduct auctions for these 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 last week.

Buyers of electric vehicles, batteries, and crucial equipment stand to gain from the move with supply of these minerals being available domestically.

This is 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.

Critical minerals also gain significance in view of India's commitment towards energy transition and achieving net-zero emission by 2070.