The MMDR Amendment Act, 2023 has significantly altered the federal balance in mineral governance. Examine its implications for Centre-State relations and India's mineral security.

Q. The MMDR Amendment Act, 2023 has significantly altered the federal balance in mineral governance. Examine its implications for Centre-State relations and India's mineral security. (15 marks, 250 words)

The MMDR (Amendment) Act, 2023 inserted 24 critical and strategic minerals into Part D, Schedule I, reserving their auction exclusively for the Central Government [1]. Grounded in Entry 54, Union List, this recalibrates India's cooperative-federal mineral framework to secure supply chains for the clean-energy transition.

Implications for Centre-State relations - Centralisation of auctions: the Centre now exclusively auctions Part D minerals (lithium, cobalt, REEs), displacing States' erstwhile authority over concessions within their territory [1]. - Fiscal safeguard: sale proceeds and royalty continue to accrue to the State Governments, so States retain the revenue stake while ceding administrative control [1]. - Federal friction vs. rationale: States perceive erosion of autonomy over territorial resources; the Centre invokes national-security and strategic-value justification. - Widening footprint: for the first time, critical-mineral blocks in Gujarat, Uttarakhand and Telangana were auctioned by the Centre [2].

Implications for mineral security - Auction momentum: 56 critical/strategic blocks and 11 Exploration Licence blocks auctioned across seven tranches, building a domestic pipeline [2]. - Mission backing: the ₹34,300 crore National Critical Mineral Mission spans exploration to recycling, cutting import dependence on China [3]. - Strategic coverage: 30 minerals vital to EVs, defence and renewables are now systematically targeted [4]. - Private participation: the EL regime de-risks and crowds in private explorers.

The Act trades a measure of State discretion for national mineral security — a justified but delicate bargain. Institutionalising transparent revenue-sharing and consultative federalism, in the spirit of cooperative federalism, will ensure the framework advances both Atmanirbhar Bharat and India's green-energy commitments.

(~250 words)

Sources: 1. Parliament Passes Mines and Minerals (Development & Regulation) Amendment Bill, 2023 (PIB) — 24 minerals in Part D, Schedule I; Centre's exclusive auction power; revenue accrues to States 2. India's Critical Mineral Mission Gains Momentum: 56 Blocks Auctioned (PIB, June 2026) — 56 blocks + 11 EL blocks; first Centre auctions in Gujarat, Uttarakhand, Telangana 3. Cabinet Approves National Critical Mineral Mission (PIB) — ₹34,300 crore, 7-year mission, exploration-to-recycling, import-dependence reduction 4. Thirty Critical Minerals List Released (PIB) — 30 minerals critical for clean energy, defence, EVs