Critical minerals are central to India's energy transition and technology ambitions. Examine how recent MMDR amendments (2023-2026) have sought to secure their exploration and development.

Lithium, cobalt, graphite and rare earths underpin EV batteries, solar cells and electronics, yet India remains import-dependent. Since 2023, a succession of amendments to the Mines and Minerals (Development and Regulation) Act, 1957 has rebuilt the legal architecture for securing these minerals — with real gains, but unresolved federal costs.

Centralising strategic control

• The MMDR Amendment Act, 2023 inserted 24 critical and strategic minerals into Part D of the First Schedule, giving the Centre exclusive power to auction their mining leases and composite licences [1].
• Royalty rates for 12 critical minerals (cobalt, tungsten, vanadium, etc.) were rationalised by Cabinet to make bidding viable [2].

Unlocking private exploration risk capital

• A new Exploration Licence (EL) was created to draw junior exploration firms into greenfield, high-risk deep-seated deposits [3].
• The MMDR Amendment Act, 2025, effective 1 September 2025, further widened exploration and production incentives for critical minerals [3].
• Auctions have progressed through successive tranches of critical and strategic mineral blocks across states, with offshore polymetallic nodules also brought into scope [4].

Easing operational rigidities

• The Mineral Concession (Second Amendment) Rules, 2026 allow inclusion of contiguous areas and associated minerals in existing leases — critical minerals often occur as by-products [5].
• The MMDR (Amendment) Bill, 2026 permits leaseholders to add minerals like lithium, graphite and nickel to existing leases, lifts the captive-mine sale cap, and provides area extension for deep-seated minerals [6].

Fiscal certainty, at a federal cost

• The 2026 Bill's proposed Section 9D bars states from levying tax or cess on mineral rights or mineral-bearing land except as the Centre prescribes, curbing multiple and retrospective levies [6].
• Mineral-rich states see this as eroding their Entry 50, List II taxing autonomy affirmed in the 2024 Mineral Area Development Authority ruling.

Taken together, these reforms have shifted India from passive state-led mining toward an auction-driven, exploration-intensive regime aligned with the National Critical Mineral Mission [7]. Their success will ultimately depend on pairing fiscal certainty with consultative federalism — sharing gains with mineral-bearing states so that resource security and cooperative federalism advance together.