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MMDR Act 1957 may be replaced by a new comprehensive mining law

19 October 20261 min read
ECONOMYMMDR Act 1957 maybe replaced by a newcomprehensivemining law19 October 2026safalsetu.com

Why in the news

According to a PTI report of 18 October 2026 citing unnamed sources, the Centre is considering a fresh, comprehensive mining law to replace the Mines and Minerals (Development and Regulation) Act, 1957. No timeline has been given.

Key facts

  • Drafting body: an inter-ministerial panel headed by the mines additional secretary.
  • Mandate: review the whole MMDR Act, study and adopt international best practices, and provide for future trends in mining.
  • Simplification: make the language simpler, align it with related laws and constitutional requirements, and suggest reforms for clarity, enforceability and efficiency.
  • Consultation: state governments and other stakeholders will be consulted before drafting.
  • Goals: ease of living, ease of doing business and the target of Viksit Bharat by 2047.

About the MMDR Act, 1957

The MMDR Act is the main central law for the development and regulation of mines and minerals. It allows the Centre to regulate mining in the public interest and to frame rules for the conservation and systematic development of minerals. The Act has been amended from time to time to meet the sector’s changing needs.

AspectWho handles it
Major mineralsCentre
Minor mineralsStates
Grant of concessions (prospecting licences, mining leases)States, under rules and auctions set by the Centre
Royalty ratesFixed by the Centre, collected by states from lessees

Exam angle

  • Remember the year 1957 and the full name of the MMDR Act.
  • Know the split: major minerals with the Centre, minor minerals with the states.
  • Royalty is fixed by the Centre but collected by the states.

Test yourself

1. In which year was the Mines and Minerals (Development and Regulation) Act enacted?

The MMDR Act dates from 1957 and is the main central mining law.

2. Under the MMDR framework, who regulates minor minerals?

The Centre regulates major minerals, while states regulate minor minerals.

3. Who chairs the inter-ministerial panel set up to draft the new mining law?

The panel is chaired by the mines additional secretary, according to PTI.

Sources: Business Standard (PTI)