Industry Odisha Bureau, Oct 18: An inter-ministerial panel will review the 1957 law and draft a new bill. The overhaul seeks simpler rules for mining firms and citizens alike. State governments will be consulted before the draft is prepared.
The Centre is considering replacing the MMDR Act, 1957, with a new mining law. Government sources told PTI the proposed legislation would be comprehensive and streamlined. The plan remains at a preliminary stage, with no draft yet prepared.
The overhaul seeks to embed ease of doing business and ease of living reforms. It forms part of a wider government review of regulations across sectors. Officials want clearer, more enforceable and more efficient rules for the mining industry.
An inter-ministerial committee will draft the new bill, according to the sources. It will be chaired by the Additional Secretary in the Ministry of Mines. The panel will review the existing Act in its entirety. It will also study international best practices and emerging trends in mining.
Its mandate includes simplifying the law’s language. It will align provisions with related statutes and constitutional requirements. The panel may then suggest structural and substantive reforms. Its recommendations will be advisory and will not amount to final policy.
The MMDR Act is India’s main central law governing mines and minerals. The Ministry of Mines administers it. The Act has been amended repeatedly to meet the sector’s changing needs. A full rewrite would go beyond such incremental changes.
The law allows the Centre to regulate mining in the public interest. It also empowers the Centre to frame rules on mineral conservation and systematic development. Major minerals fall under central regulation, while states regulate minor minerals.
State governments grant mineral concessions, including prospecting licences and mining leases. They must follow rules and auction procedures set by the Centre. The Centre also fixes royalty rates, which states collect from leaseholders. Any change to this structure could affect revenues in mineral-rich states. No changes to royalties or auctions have been announced.
The review of international practices could inform how India drafts its rules. Any foreign models would need adapting to India’s federal constitutional structure. The sources did not name specific countries or laws for comparison.
The government links the overhaul to mining’s role in the wider economy. Sources cited future technological progress and the country’s strategic needs. Viksit Bharat 2047, the national development vision, was cited too. Minerals feed manufacturing, infrastructure and energy supply chains.
For mining companies, regulatory certainty is central to investment decisions. Projects are capital-intensive and often take years to develop. Clearer legislation could reduce legal ambiguity for concession holders. However, simpler language alone would not guarantee faster approvals or new investment. Nor does simplification by itself imply weaker environmental or conservation safeguards.
The committee will consult state governments and other stakeholders before drafting. States may hold differing views, given their role in concessions and royalty collection. Any bill would then require parliamentary approval before taking effect.
Until then, the existing MMDR Act continues to govern the sector. The new mining law’s final scope will depend on drafting and legislative choices. Its value will rest on whether it offers clearer rules without diluting safeguards.
