INDIA Trends and Developments Contributed by: Anuja Tiwari, Mallika Anand, Aditya Pandey and Aman Raj, AZB & Partners
be upgraded or developed to complement the growth of the mining industry. Government policies The government of India has made key reforms in the regulatory landscape in this decade, real - ising the issues in this sector, and its untapped potential. Since 2023, the government has accelerated the process of making reformatory changes to simplify the process of the alloca - tion of mines and to make the exploration and production of minerals financially attractive and bankable for private players. Mines and Minerals (Development and Regulation) Act, 1957 In 2023, the MMDR Act was amended to intro - duce an exploration licence for deep-seated and critical minerals. The exploration licence would facilitate, encourage and incentivise private sec - tor participation in all spheres of mineral explo - ration, bringing in advanced technology and expertise. The explored blocks will thereafter be auctioned for a mining lease, and the exploration agency will be entitled to a share in the premium payable by the mining lease holder. This has been introduced with the aim of ena - bling an ecosystem where the exploration agen - cies bring expertise in data acquisition and lev - erage the risk-taking ability for the discovery of deposits. Similar to the practice followed in the oil and gas sector, revenue sharing between the mining lease holder and the government is undertaken if minerals are discovered, which ensures that exploration agencies as well as the government derive benefits from the exploration and mining activity. The central government has been empowered to exclusively auction mining leases and composite leases for 24 critical minerals, as these minerals
are indispensable for the growth of the economy. The auction rules have also been amended to authorise the central government to conduct auctions for the grant of mining leases or com - posite licences in respect of these critical and strategic minerals. These regulatory changes have led to increased participation from private players in the sector, and around 281 blocks have been successfully auctioned since 2021. Mineral Conservation and Development (Amendment) Rules, 2024 These rules aim to implement provisions for exploration licences, to rationalise penalties for small miners with lease areas of up to 25 hectares and to relax the requirement to submit mining plans for certain categories. The rules seek to promote sustainable mining practices and enhance compliance standards within the sector. Atomic Minerals Concession (Amendment) Rules, 2024 These rules relate to atomic minerals and focus on the procedures for granting concessions, ensuring compliance with safety standards and promoting the sustainable development of atom - ic mineral resources. The rules aim to streamline the concession process and enhance regulatory oversight in the extraction of atomic minerals. There is a greater emphasis on sustainable prac - tices, as afforestation, water conservation and land reclamation are pre-conditions for lease renewals and operations. Special incentives are introduced for the exploration and mining of criti - cal minerals (eg, lithium and rare earths), which are vital for energy transition and the EV industry. Offshore mining – major reforms While the MMDR Act regulates exploration and mining activity on Indian land, the Offshore Areas
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