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.

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.