The critical mineral security agenda is set to gain support from the Mines and Minerals (Development and Regulation) Amendment Bill, 2026. The legislation aims to modernise India’s mineral governance, encourage exploration and strengthen domestic mineral supply. It also seeks to create a more predictable fiscal framework for the mining sector.
Critical Mineral Security and Mineral Governance
The recently enacted Mines and Minerals (Development and Regulation) Amendment Bill, 2026 has been passed by both Houses of Parliament. It seeks to strengthen India’s mineral governance framework while supporting exploration, resource development and critical mineral security.
A key provision limits state governments from imposing new taxes, cesses or other levies on mineral rights and mineral-bearing lands, subject to conditions prescribed by the Central Government.
The move aims to improve fiscal predictability for mining companies. It could also help reduce cost pressures across domestic mineral supply chains.
Bill Targets Multiple Mining Levies
The legislation addresses concerns around multiple levies, different rates across states and retrospective charges linked to mineral production or dispatch.
The government said these additional costs have increased the compliance burden for mining operators. They can also affect the viability of smaller and medium-sized mining businesses.
A more consistent fiscal framework could help companies plan investments and assess mining projects with greater certainty.
Supporting Domestic Mineral Supply
The government expects the reforms to support domestic mineral production and critical mineral security. High extraction costs can make domestic resources less competitive and encourage industries to depend on overseas supplies.
Greater domestic production could reduce import dependence and strengthen supply chains for industries that rely on critical minerals. It could also help improve the competitiveness of India’s mining and mineral-based industries.
The 2026 reforms aim to establish a predictable fiscal environment for the mining sector. The government expects this framework to encourage exploration, support domestic mineral production and strengthen India’s long-term critical mineral security.
