Rajya Sabha Passes Mines Bill: ₹34,000 Crore Critical Minerals Push Reshapes India’s Resource Strategy

India has taken a decisive step toward securing the critical minerals essential for its renewable energy, electronics, defence, and economic ambitions. On August 20, the Rajya Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025—a legislative move that greenlights an estimated ₹34,000 crore push to unlock domestic reserves of lithium, rare earths, cobalt, graphite, nickel, and other strategic materials.

A New Era for Indian Mining

The Bill marks a departure from decades of restrictive policy, opening the doors for private and foreign investment in mining 24 “critical and strategic” minerals previously controlled by state agencies or not permitted for exploitation at all. The Centre will now auction these mineral blocks—which include lithium (key for electric vehicle batteries and grid storage), titanium, vanadium, graphite, and rare earth elements—under streamlined rules designed to accelerate exploration and extraction.

The reforms aim to insulate India's high-tech sectors and green transition from global supply risks, especially China’s dominance in rare earths and battery metals. By establishing a clear, competitive pathway for companies to participate in critical mineral mining, the government hopes to drive down import dependence, boost local manufacturing, and establish stable, future-proofed supply chains.

The ₹34,000 Crore Investment Roadmap

At the heart of the Bill is an ambitious ₹34,000 crore investment package, dedicated to mapping, surveying, and commercialising domestic reserves, as well as supporting downstream processing, research, and skills development. The outlay includes incentives for exploration technology, auction facilitation, environmental assessments, and the creation of a National Mineral Resource Repository.

The government has identified that over a quarter of India’s planned capital spending under this Bill will be channelled towards specific state projects in mineral-rich regions including Jharkhand, Odisha, Rajasthan, and Karnataka. Funds are also tapped for strategic stockpiling, mineral corridor infrastructure, and fostering public-private R&D partnerships essential for processing and refining technologies.

Regulatory Overhaul—From Restriction to Opportunity

One of the Bill’s centrepieces is the overhaul of the previous licensing and approval framework. Bureaucratic delays and complex clearance pathways have long stifled India’s mining sector. The 2025 amendments establish faster single-window approvals, a centralised online application system, and time-bound targets for granting clearances, with explicit mandates for environmental and social safeguards.

The Bill also carves a special status for “critical minerals,” allowing the Centre to transfer blocks directly from state to central auction if strategic interests require fast-tracking. Transparent auction criteria and tight oversight are designed to attract serious long-term investors while curtailing speculative land banking.

Strategic Autonomy and Self-Reliance at the Core

As India seeks to become a global leader in battery manufacturing, renewables, semiconductors, and next-generation tech, reducing import vulnerability has become a national security priority. The mines Bill explicitly identifies the need for “critical mineral security,” recognising that volatile geopolitics, particularly with China, could easily disrupt supply chains.

Industry commentators and geopolitical analysts have welcomed the bipartisan passage of this legislation, noting that private and foreign players can now legally participate in India’s critical mineral extraction for the first time—provided they meet robust environmental, safety, and value-addition criteria. This is expected to attract capital from global technology, energy, and mining majors seeking stable supply in India’s fast-growing market.

Environment and Local Communities

While the new Bill fast-tracks mining, environmental oversight remains a legal requirement. All new projects must meet India’s Forest Conservation Act and Environment Impact Assessment mandates, with a focus on minimising ecological disruption, supporting rehabilitation, and ensuring fair compensation and consent procedures for affected communities, especially indigenous and tribal populations in mining areas.

The Bill encourages mineral beneficiation and processing domestically, aiming to capture more value within India and reduce the export of unprocessed ore.

Challenges and Prospects

Despite the optimism, realising the full benefits of the Mines Bill will rely on rapid state and central execution, proper stakeholder engagement, data transparency, and even-handed implementation across diverse geographies. The government must also invest in skilled workforce training, advanced geological mapping, and supply chain digitisation.

If implemented effectively, the Bill stands to transform India from a net importer to a pivotal producer and exporter of critical minerals, directly supporting “Atmanirbhar Bharat” (self-reliance) and global leadership across clean technologies.