MMDR Act 1957 may be replaced by a new comprehensive mining law
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.
| Aspect | Who handles it |
|---|---|
| Major minerals | Centre |
| Minor minerals | States |
| Grant of concessions (prospecting licences, mining leases) | States, under rules and auctions set by the Centre |
| Royalty rates | Fixed 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.