Minerals Concession Rules (Second Amendment), 2026

Context

The Ministry of Mines recently notified the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026. The amendment aims to improve operational efficiency, optimise mineral allocation, and boost domestic production

of critical and deep-seated minerals.

The reforms complement the MMDR (Amendment) Act, 2025, which focuses on reducing procedural delays and strengthening India’s mineral self-reliance.

Why is the Amendment Important?

India is heavily dependent on imports for several critical minerals such as lithium, cobalt, copper, and nickel, which are essential for:

• Electric vehicles (EVs),
• Renewable energy systems,
• Electronics and semiconductors,
• Defence and strategic industries.

The amendment seeks to accelerate mineral exploration and ensure efficient utilisation of domestic resources.

Key Provisions of the Amendment

1. Areal Cap for Contiguous Areas
   • Contiguous area inclusion is capped at:
     • 10% for Mining Lease (ML),
     • 30% for Composite Licence (CL).
   • The provision ensures economically viable extraction of deep-seated minerals like gold, copper, and lithium.
2. Faster Approval for Critical Minerals
   • State Governments are mandated to approve the inclusion of critical minerals within 30 days of application.
   • This reduces delays and encourages investment in exploration.

3. Reclassification of Mineral Blocks
   • If a major mineral is discovered in a minor mineral block, the area must be re-auctioned as a major mineral block.
   • This ensures transparency and maximises revenue generation.

4. Exploration Mandate
   • Mining leases for minor minerals (except sand) require G3 level preliminary exploration

to establish commercial viability before approval.

• This improves scientific mining and reduces speculative allocation.

5. Liberalisation of Captive Mines
   • The amendment removes earlier restrictions on surplus mineral sales.
   • Captive mine operators can now sell excess minerals in the market after fulfilling end-use plant requirements.
   • This promotes efficient utilisation of mineral resources.

Significance

The amendment is expected to:

• Boost domestic production of critical minerals,
• Reduce import dependence,
• Encourage private investment in mining,
• Strengthen supply chains for clean energy technologies,
• Improve transparency and scientific exploration.

The reforms support India’s long-term goal of achieving mineral security and becoming self-reliant in strategic resources.