Question of the Day – THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) AMENDMENT BILL, 2025

QOTD April 13,2026

With reference to the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, consider the following statements:

1. It aims to promote private sector participation in mineral exploration.
2. It removes all powers of state governments in granting mining leases.
3. It focuses on sustainable and scientific mining practices.

Which of the statements given above is/are correct?
(a) 1 and 3 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2 and 3

Answer: (a) 1 and 3 only

Explanation:
Statement 1 is correct
It encourages private sector participation to boost mineral exploration and investment.

Statement 2 is incorrect
State governments continue to play a key role in granting mining leases under the framework.

Statement 3 is correct
The bill emphasizes sustainable and scientific mining aligned with environmental concerns.

Why in news–

The Mines and Minerals (Development and Regulation) Amendment Bill, 2025 has been introduced to reform the mining sector by improving transparency, boosting private participation, and ensuring better utilization of mineral resources. It focuses on easing regulatory processes, promoting exploration, and aligning India’s mining framework with sustainable development goals while addressing issues related to illegal mining and revenue sharing with states.

News-https://www.thehindu.com/news/national/parliament-passes-mines-and-minerals-amendment-bill/article69951567.ece

There are more questions from this topic that you should practice to make your concepts stronger.

Practice Questions (PQ)

PQ1.Consider the following statements:

1. The MMDR Amendment Bill, 2025 seeks to simplify the process of obtaining mining licenses.
2. It introduces measures to curb illegal mining activities.
3. It completely abolishes auction as a method for allocation of mineral blocks.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2 and 3

Answer : (a) 1 and 2 only

Explanation:

Statement 1 is correct
The bill proposes procedural simplification to make licensing more efficient.

Statement 2 is correct
It includes stricter provisions and monitoring to tackle illegal mining.

Statement 3 is incorrect
Auction remains a key method for transparent allocation of mineral resources.

PQ2. Consider the following statements:

1. The MMDR Act is related to regulation of coal and non-coal minerals in India.
2. The Amendment Bill, 2025 aims to increase revenue sharing with states.
3. The Act is administered by the Ministry of Agriculture.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2 and 3

 Answer: (a) 1 and 2 only

Explanation:

Statement 1 is correct
The MMDR Act governs the regulation of both coal and non-coal minerals.

Statement 2 is correct
The reforms aim to ensure better revenue mechanisms for states.

Statement 3 is incorrect
The Act is administered by the Ministry of Mines, not Agriculture.

PQ3. Consider the following statements:

1. District Mineral Foundation (DMF) is associated with welfare of mining-affected areas.
2. National Mineral Exploration Trust (NMET) is used to fund mineral exploration.
3. Both DMF and NMET were introduced through amendments to the MMDR Act.

Which of the statements given above is/are correct?
(a) 1, 2 and 3
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1 only

Answer: (a) 1, 2 and 3

 Explanation:

Sstatement 1 is correct
DMF works for the benefit of people affected by mining activities.

Statement 2 is correct
NMET funds exploration to identify new mineral resources.

Statement 3 is correct
Both were introduced through amendments to strengthen the mining sector.

 Previous Year Question (UPSC Prelims)

With reference to the District Mineral Foundation (DMF), consider the following statements:

1. It is a non-profit trust established under the MMDR Act.
2. It works for the interest and benefit of persons affected by mining.
3. The composition and functioning of DMF are prescribed by the Central Government.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a) 1 and 2 only

Explanation:

Statement 1 is correct
DMF is a statutory non-profit trust set up under the MMDR Act.

Statement 2 is correct
Its main objective is to benefit mining-affected communities.

Statement 3 is incorrect
The composition and functioning are largely decided by the State Governments.