India’s Critical Minerals Bill 2025: NMEDT Expansion, Mineral Exchanges

A significant advancement in the country’s resource security strategy, India’s Critical Minerals Bill 2025 aims to secure supplies of strategic and critical minerals needed for advanced manufacturing, electric mobility, and clean energy technologies. The National Critical Mineral Mission to lessen reliance on imports, diversify global supply chains, and increase mineral self-reliance is in line with the bill, which also extends the National Mineral Exploration and Development Trust’s (NMEDT) mandate to include offshore and international exploration and encourages transparency through mineral exchanges.

Important Points of the Amendments

NMEDT, the National Mineral Exploration and Development Trust: With the goal of including both offshore and overseas exploration for vital minerals, the National Mineral Exploration Trust is renamed NMEDT.

• Mining leaseholder contributions to NMEDT will rise from 2% to 3% of royalties due.
• These are online marketplaces for the trading of minerals, concentrates, and metals and other processed forms. The goal of these exchanges is to provide a dynamic, transparent market for price discovery.
• Promoting Critical Mineral Extraction: The bill makes it easier to include new minerals in mining leases that are already in place. When included in an existing lease, key minerals identified in Part D of the First Schedule or the Seventh Schedule will not need extra royalty payments.
• Mining Lease Areas May Be Extended Once Only: 30% for composite licenses and up to 10% for deep-seated minerals (below 200 meters). 

Removal of Cap on Sale from Captive Mines: State governments are now allowed to approve the sale of former mining wastes, and the 50% cap on mineral sales from captive mines—mines owned and operated by a business for its own exclusive use—has been lifted.

Mains: 

Question: “Securing access to critical minerals is vital for India’s energy transition and strategic autonomy.” Discuss the significance of the Critical Minerals Bill 2025 in strengthening India’s mineral sector in the context of global supply chain disruptions.

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MCQs:

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Question: Consider the following statements regarding the National Mineral Exploration and Development Trust (NMEDT) as per the Critical Minerals Bill 2025:

1. It was earlier known as the National Mineral Exploration Trust (NMET).
2. Its mandate now includes offshore and international exploration for critical minerals.
3. Funding to NMEDT will come from a fixed budgetary allocation by the Union Government.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Answer: A

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