The concept of "Mine" in the context of Indian law and economy is primarily governed by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). This Act of the Parliament of India is the principal Central law that regulates the development, exploration, and extraction of minerals across the country.
The MMDR Act was enacted on December 28, 1957, to secure tight state control over critical strategic reserves and provide a statutory framework for the regulation of mines and the development of minerals under the control of the Union. It was created to ensure systematic mineral development and conservation, replacing haphazard mining operations.
The Act works by establishing a framework for granting mineral concessions, such as prospecting licenses and mining leases. A key mechanism introduced by the Mines and Minerals (Development and Regulation) Amendment Act, 2015, was the mandate for competitive e-auctions for the allocation of all notified and non-notified mineral concessions, ending the previous discretionary system. This amendment also set a standard 50-year lease duration for non-coal and non-atomic minerals. The Act distinguishes between major minerals, which are regulated by the Central Government, and minor minerals, which fall under the purview of State Governments.
The MMDR Act connects to the constitutional division of powers, where Parliament regulates mineral development (Union List, Entry 54), and States regulate minor minerals and have powers to tax mineral rights (State List, Entry 23 and 50). Related institutions established under the Act include the District Mineral Foundation (DMF), which receives a fixed percentage of revenue for the development of mining-affected areas, and the National Mineral Exploration Trust (NMET).
The Act has changed significantly, with the MMDR Amendment Act, 2021, eliminating restrictive captive mining conditions and allowing captive mines to sell up to 50% of their annual mineral production in the open market. Most recently, the Mines and Minerals (Development and Regulation) Amendment Act, 2026, was introduced to establish a uniform fiscal framework by restricting State Governments from levying fresh taxes on mineral rights and mineral-bearing lands, except as prescribed by the Central Government.