UPSC Prelims Practice Questions — Mines and Minerals (Development and Regulation) Amendment Act, 2026

Q1. With reference to the Mines and Minerals (Development and Regulation) Amendment Act, 2026, consider the following statements: 1. It bars a State Government from imposing any tax, cess or other levy on mineral rights or mineral-bearing lands except in accordance with conditions or restrictions prescribed by the Central Government. 2. It brings under Union control the regulation of mineral-bearing lands having mineral contents identified as per parameters prescribed by the Central Government. 3. It renames the National Mineral Exploration Trust as the National Mineral Exploration and Development Trust and raises its contribution from two per cent to three per cent of royalty. 4. It provides that such State levies as remain unpaid before its enactment shall be void, while amounts already collected shall not be refundable. Which of the above is/are NOT correct?

  1. It bars a State Government from imposing any tax, cess or other levy on mineral rights or mineral-bearing lands except in accordance with conditions or restrictions prescribed by the Central Government.
  2. It brings under Union control the regulation of mineral-bearing lands having mineral contents identified as per parameters prescribed by the Central Government.
  3. It renames the National Mineral Exploration Trust as the National Mineral Exploration and Development Trust and raises its contribution from two per cent to three per cent of royalty.
  4. It provides that such State levies as remain unpaid before its enactment shall be void, while amounts already collected shall not be refundable.
  • A. 1 and 3
  • B. 3 only
  • C. 2 and 4
  • D. 1, 2 and 4

Q2. Under the Mines and Minerals (Development and Regulation) Amendment Act, 2026, land is treated as 'mineral bearing land' for the purpose of Union regulation on which one of the following bases?

  • A. It has been notified as a mineral concession area by the State Government under its minor mineral concession rules
  • B. A mining lease or a composite licence over it has already been granted through auction to a concessionaire
  • C. It has mineral contents in accordance with the parameters prescribed by the Central Government under the Act
  • D. It has been classified as mineral-bearing in the district survey report prepared by the district administration

Q3. With reference to the judicial background against which the Mines and Minerals (Development and Regulation) Amendment Act, 2026 was enacted, consider the following statements: 1. A nine-judge Bench in Mineral Area Development Authority v. Steel Authority of India (2024) held by majority that royalty under the MMDR Act, 1957 is not a tax. 2. The Bench upheld the competence of State legislatures to levy taxes on mineral rights under Entry 50 of the State List. 3. The Bench held that the MMDR Act, 1957, as it then stood, had itself already imposed limitations on the States' power to tax mineral rights. 4. The judgment displaced the position flowing from the India Cement case (1989), under which royalty had been treated as a tax. Which of the statements given above is/are correct?

  1. A nine-judge Bench in Mineral Area Development Authority v. Steel Authority of India (2024) held by majority that royalty under the MMDR Act, 1957 is not a tax.
  2. The Bench upheld the competence of State legislatures to levy taxes on mineral rights under Entry 50 of the State List.
  3. The Bench held that the MMDR Act, 1957, as it then stood, had itself already imposed limitations on the States' power to tax mineral rights.
  4. The judgment displaced the position flowing from the India Cement case (1989), under which royalty had been treated as a tax.
  • A. 1, 2 and 4
  • B. 1 and 3
  • C. 2, 3 and 4
  • D. 3 and 4 only

Q4. Parliament's competence to declare, by the MMDR Act, 1957, that the regulation of mines and mineral development should be under the control of the Union is traceable to which one of the following?

  • A. Entry 23 of the State List (List II)
  • B. Entry 54 of the Union List (List I)
  • C. Entry 50 of the State List (List II)
  • D. Entry 49 of the State List (List II)

Q5. The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was introduced in the Lok Sabha on 10 August 2026. How many days after its introduction was it passed by the Rajya Sabha?

  • A. 2 days
  • B. 3 days
  • C. 5 days
  • D. 8 days

Q6. The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was piloted in Parliament by the Union Ministry that is the administrative Ministry for the parent Act of 1957. Which one of the following is that Ministry?

  • A. Ministry of Coal
  • B. Ministry of Steel
  • C. Ministry of Earth Sciences
  • D. Ministry of Mines

Q7. Consider the following pairs of amendments to the Mines and Minerals (Development and Regulation) Act, 1957 and their principal features: 1. MMDR Amendment Act, 2021 — omission of six minerals, including lithium-bearing and zirconium-bearing minerals, from the list of atomic minerals in the First Schedule 2. MMDR Amendment Act, 2015 — mandatory grant of mineral concessions through auction and creation of the District Mineral Foundation 3. MMDR Amendment Act, 2023 — introduction of the exploration licence for critical and deep-seated minerals 4. MMDR Amendment Act, 2025 — removal of the cap on sale of minerals from captive mines and provision for registered electronic trading platforms Which of the above is/are correctly identified?

  1. MMDR Amendment Act, 2021 — omission of six minerals, including lithium-bearing and zirconium-bearing minerals, from the list of atomic minerals in the First Schedule
  2. MMDR Amendment Act, 2015 — mandatory grant of mineral concessions through auction and creation of the District Mineral Foundation
  3. MMDR Amendment Act, 2023 — introduction of the exploration licence for critical and deep-seated minerals
  4. MMDR Amendment Act, 2025 — removal of the cap on sale of minerals from captive mines and provision for registered electronic trading platforms
  • A. 1 and 2 only
  • B. 1, 3 and 4
  • C. 2 and 3 only
  • D. 2, 3 and 4

Q8. The District Mineral Foundation, provided for by the MMDR Amendment Act, 2015 and through whose funds the Pradhan Mantri Khanij Kshetra Kalyan Yojana is implemented, is established by which authority?

  • A. The Central Government, in each district affected by mining-related operations
  • B. The State Government, in each district affected by mining-related operations
  • C. The Indian Bureau of Mines, in each mineral-bearing district of the country
  • D. The National Mineral Exploration Trust, in each district where mines operate

Q9. The Union Cabinet approved royalty rates for a set of twelve critical and strategic minerals by amending the relevant Schedule of the MMDR Act, 1957. Consider the following minerals: 1. Cobalt 2. Lithium 3. Tungsten 4. Rhenium Which of the above is/are correctly identified as belonging to that set of twelve?

  1. Cobalt
  2. Lithium
  3. Tungsten
  4. Rhenium
  • A. 1, 3 and 4
  • B. 1 and 2 only
  • C. 2, 3 and 4
  • D. 1, 2 and 3

Q10. Consider the following statements regarding the rationalisation of royalty rates for critical and strategic minerals under the MMDR Act, 1957: 1. Royalty rates for Lithium, Niobium and Rare Earth Elements were approved before those for the tranche that included Beryllium and Vanadium. 2. With the approval of rates for the tranche that included Beryllium and Vanadium, the rationalisation exercise stood completed for all twenty-four critical and strategic minerals. 3. Royalty rates for these minerals are specified by amending the First Schedule to the MMDR Act, 1957. Which of the statements given above is/are correct?

  1. Royalty rates for Lithium, Niobium and Rare Earth Elements were approved before those for the tranche that included Beryllium and Vanadium.
  2. With the approval of rates for the tranche that included Beryllium and Vanadium, the rationalisation exercise stood completed for all twenty-four critical and strategic minerals.
  3. Royalty rates for these minerals are specified by amending the First Schedule to the MMDR Act, 1957.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q11. Under the Mines and Minerals (Development and Regulation) Act, 1957, the power to make rules for regulating the grant of quarry leases, mining leases and other mineral concessions in respect of minor minerals vests in which authority, and under which provision?

  • A. The Central Government, under Section 13 of the Act
  • B. The Central Government, under Section 15 of the Act
  • C. The State Governments, under Section 15 of the Act
  • D. The State Governments, under Section 13 of the Act

Q12. Consider the following statements comparing the fiscal regime for major minerals before and after the Mines and Minerals (Development and Regulation) Amendment Act, 2026: 1. The 2026 Amendment replaces the auction-based method of granting mineral concessions with allotment of critical mineral blocks on a first-come-first-served basis. 2. Before the 2026 Amendment, the MMDR Act, 1957 carried no express bar on State levies relating to mineral rights, and such levies could be introduced even after mining operations had commenced. 3. After the 2026 Amendment, a State levy on mineral rights can be imposed only in accordance with conditions or restrictions prescribed by the Central Government. Which of the statements given above is/are correct?

  1. The 2026 Amendment replaces the auction-based method of granting mineral concessions with allotment of critical mineral blocks on a first-come-first-served basis.
  2. Before the 2026 Amendment, the MMDR Act, 1957 carried no express bar on State levies relating to mineral rights, and such levies could be introduced even after mining operations had commenced.
  3. After the 2026 Amendment, a State levy on mineral rights can be imposed only in accordance with conditions or restrictions prescribed by the Central Government.
  • A. 1 and 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1, 2 and 3