📷 Image: Wikimedia Commons / Lev.Borisovitch
Business
Government to Revamp MMDR Act and Draft New Mining Legislation
✍️ Nagaland Post
🗓 19 Oct 2026, 03:16 PM
👁 23
The Union government announced plans to overhaul the Mines and Minerals Development and Regulation Act and prepare a fresh mining law to modernise the sector.
New Delhi – The Ministry of Mines said the central government will undertake a comprehensive revision of the Mines and Minerals Development and Regulation (MMDR) Act, aiming to replace it with a new mining law that reflects current industry practices and environmental standards. The move follows a series of consultations with state governments, industry bodies and civil‑society groups, which highlighted gaps in the existing framework.
The proposed overhaul is expected to streamline licensing procedures, introduce clearer norms for mineral extraction, and strengthen compliance monitoring. Officials indicated that the revised regime will incorporate stricter environmental safeguards and provisions for community benefit sharing, addressing long‑standing concerns over unregulated mining activities.
A draft of the new legislation is slated to be prepared by the end of the fiscal year, after which it will be placed before the cabinet for approval. The government has promised extensive stakeholder engagement before the bill is introduced in Parliament, signalling a push for transparency and consensus.
If enacted, the new law could reshape investment dynamics in the mining sector, offering clearer rules for domestic and foreign players while aiming to boost revenue for mineral‑rich states. Analysts expect that a modernised legal framework will also help curb illegal mining and improve resource governance across the country.
The proposed overhaul is expected to streamline licensing procedures, introduce clearer norms for mineral extraction, and strengthen compliance monitoring. Officials indicated that the revised regime will incorporate stricter environmental safeguards and provisions for community benefit sharing, addressing long‑standing concerns over unregulated mining activities.
A draft of the new legislation is slated to be prepared by the end of the fiscal year, after which it will be placed before the cabinet for approval. The government has promised extensive stakeholder engagement before the bill is introduced in Parliament, signalling a push for transparency and consensus.
If enacted, the new law could reshape investment dynamics in the mining sector, offering clearer rules for domestic and foreign players while aiming to boost revenue for mineral‑rich states. Analysts expect that a modernised legal framework will also help curb illegal mining and improve resource governance across the country.