New Delhi, Oct 18: The Centre is weighing a complete overhaul of the Mines and Minerals (Development and Regulation) Act, 1957, with plans to replace the nearly seven-decade-old law with comprehensive new mining legislation aimed at improving ease of living and ease of doing business, sources said.
An inter-ministerial committee, chaired by the Additional Secretary in the Ministry of Mines, has been tasked with drafting the proposed legislation, according to sources.
The panel will undertake a thorough review of the existing Act, study international best practices and incorporate relevant provisions into the proposed law. It will also factor in future trends and technological developments shaping the mining sector.
The government has proposed the sweeping legal reform in view of the sector’s importance to the economy, rapid technological advancement, the country’s strategic requirements and the vision of a Viksit Bharat by 2047, sources added.
The proposed legislation is expected to simplify the language of the existing Act, align its provisions with related laws and constitutional requirements, and introduce structural and substantive reforms to improve clarity, enforceability and efficiency.
Before preparing the draft Bill, the committee will consult stakeholders, including state governments, whose role in mineral administration is significant under the current framework.
The Ministry of Mines administers the MMDR Act, which has been amended periodically over the years to address the evolving needs of the mining and minerals sector. The proposed overhaul is in line with the Centre’s recent push to review the country’s regulatory framework across sectors and introduce reforms that make it easier for citizens and businesses to navigate them.
Enacted in 1957, the MMDR Act is the principal central legislation governing the development and regulation of mines and minerals in India. It empowers the Centre to regulate mining and mineral development in the public interest and to frame rules for mineral conservation and systematic development.
The Act draws a distinction between major and minor minerals, with the Centre regulating major minerals and state governments overseeing minor minerals.
Under the law, state governments grant mineral concessions, including prospecting licences and mining leases, in accordance with the applicable central legal framework and rules. The Centre also prescribes royalty rates, which the states collect from leaseholders.
A new mining law, if enacted, could reshape how mineral concessions are governed and how the sector balances regulation with growth, as India seeks to secure critical resources for its economic and strategic ambitions.
Original Source: https://assamtribune.com/national/centre-eyes-overhaul-of-1957-mining-law-targets-ease-of-doing-business-reforms-1620595
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Publish Date: 2026-10-18 16:21:00
