New mining bill significantly boosts state rights, employment and economic growth: Member Standing Committee

New Delhi [India], August 14 : BJP MP and Member of the Standing Committee on Coal Mines & Steel, Roopkumari Choudhary, on Thursday said that the Mines and Minerals (Development and Regulation) Amendment Bill, 2025 will bill boosts employment, improves states' rights, and add to the economy by allowing more efficient use of India's mineral resources.

Speaking with ANI, Choudhary emphasised that the bill, passed by Loksabha on Tuesday, aims to strengthen India's economic position by granting states greater authority over mining and mineral resources.

Choudhary said that under the bill the States are also granted the right to sell mining waste, benefiting local revenue and environmental management. Additionally, states will have a role in the proposed mineral exchange, allowing them to monitor production, reserves, and sales, she said.

"This bill significantly enhances states' rights, promotes employment, and strengthens the economic condition by enabling better utilisation of mineral resources," Member of Standing Committee on Coal Mines & Steel, Choudhary said.

The bill seeks to provide a simpler regime for promoting conservation of minerals, zero waste mining and support the objectives of the National Critical Mineral Mission, given the significance of critical and strategic minerals in the development of the country.

"This bill is expected to be a historic shift for India's mining sector, particularly by accelerating the exploration and production of strategic and rare minerals like lithium, graphite, nickel, and cobalt, which are crucial for electronic vehicles, battery manufacturing, and high-tech industries," she added.

"The National Mineral Exploration Trust (MMET) funding has been increased from 2 per cent to 3 per cent, enhancing both exploration and infrastructure in the mineral sector, thereby opening up investment opportunities. The bill also allows for the addition of other minerals to mineral leases and removes old restrictions on the sale of captive mines, directly benefiting industries... States now have the authority to increase mining lease areas by up to 30 per cent and sell up to 100 per cent of captive mine production, subject to additional royalty collection," she further added.

The new legislation now allows private players and foreign direct investment (FDI) to participate in the exploration and development of critical minerals.

The new Bill also includes provisions for offshore mineral exploration and allows for the critical mineral projects in foreign territories.

During the debate on the bill, in Loksabha, Union Minister for Coal and Mines G Kishan Reddy stated that every sector is dependent on critical minerals and the significance of critical and strategic minerals in the development of the country is continuously increasing. The recent global geopolitical developments has constricted the supply chains of these minerals, provisions of the new bill will facilitate domestic explorations of critical minerals.

The Centre launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector.

Under this mission, the Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects between 2024-25 to 2030-31.

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