Question: Critical Minerals Mission — regulatory framework, MMDR amendments, and governance of critical mineral exploration in India
Introduction
India's push to secure critical minerals such as lithium, cobalt, and nickel for clean-energy transition has placed the Mines and Minerals (Development and Regulation) framework at the centre of a significant legislative and policy overhaul.
Body
1. MMDR Amendment and Central Government's Role
The MMDR (Amendment) Act, 2023 empowered the Central Government to conduct auctions for specified critical and deep-seated minerals, marking a departure from the conventional State-led auction model. This was not an absolute bypass of States; revenue from such auctions still accrues to the concerned State Government, preserving fiscal federalism while centralising technical oversight.
2. Exploration Licences for Critical Minerals
The 2023 amendment reintroduced the Exploration Licence as a distinct instrument, enabling private entities to explore for critical minerals including lithium, cobalt, nickel, and others identified in the amended schedules. This addressed a long-standing gap where junior exploration companies lacked a legal pathway to invest in early-stage mineral discovery.
3. Offshore Mineral Governance
Offshore areas, including those within India's Exclusive Economic Zone, are governed primarily under the Offshore Areas Mineral Development and Regulation Act, 2002, not the MMDR Act, 1957. Extending critical mineral exploration to the EEZ therefore requires engagement with a separate legislative framework, creating a coordination challenge between the Ministry of Mines and other maritime authorities.
4. Critical Minerals Mission — Strategic Imperative
The Union Budget 2024-25 formalised the Critical Minerals Mission to reduce import dependence, support battery storage and semiconductor supply chains, and attract geological survey investment. Effective implementation requires aligning the Geological Survey of India's capacity, environmental clearance timelines, and international mineral partnerships.
Conclusion
Securing critical minerals demands coherent governance across onshore and offshore jurisdictions, calibrated Centre-State roles, and streamlined exploration licensing — balancing strategic self-reliance with environmental accountability and subnational revenue interests.
Word count: 263
PYQ 2025
Consider the following statements:
Statement I: In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories.
Statement II: In India, the Central Government has the power to notify minor minerals under the relevant law.
Which one of the following is correct in respect of the above statements?
PYQ
Under the MMDR Act, 1957, which of the following is/are included in the category of 'atomic minerals' over which the Central Government has exclusive jurisdiction for granting mineral concessions?
1. Beryl and beryllium-bearing minerals
2. Lithium-bearing minerals
3. Titanium-bearing minerals and ores
4. Manganese ores
Select the correct answer using the code given below:
PYQ
Consider the following statements regarding the Mines and Minerals (Development and Regulation) Amendment Act, 2021:
1. The 2021 Amendment removed the requirement of prior approval of the Central Government for transfer of mining leases in the case of government companies.
2. The 2021 Amendment introduced a provision for the Central Government to undertake mineral exploration in any area, including areas already held under a reconnaissance permit.
3. The 2021 Amendment allowed captive mines to sell up to 50% of their annual mineral production in the open market after meeting their own requirements.
Which of the statements given above is/are correct?
PYQ
With reference to 'auction of mineral blocks' under the MMDR Act, 1957 as amended, which of the following statements is/are correct?
1. The Central Government has the power to conduct auctions for mining leases of coal and lignite.
2. For major minerals other than coal and lignite, the State Governments conduct auctions but only with prior approval from the Central Government on a case-by-case basis.
3. The auction process for major minerals (other than coal) is conducted under rules framed by the Central Government.
Select the correct answer using the code given below:
PYQ
Under the MMDR Act, 1957, what is the maximum period for which a mining lease for major minerals (other than coal, lignite, and atomic minerals) can be initially granted after the MMDR Amendment Act, 2015?