Centre Proposes Increased NMET Funding for Overseas Critical Mineral Acquisitions

The Union government has introduced significant amendments to the Mines and Minerals (Development and Regulation) Act, 1957, aimed at strengthening India’s critical mineral supply chains, as per news reports. 

The proposal, tabled in the Lok Sabha by Union Coal and Mines Minister G Kishan Reddy, seeks to channel greater mining proceeds into the National Mineral Exploration Trust, with expanded powers to fund overseas acquisitions in support of the National Critical Mineral Mission.

Higher Levy and Expanded Trust Mandate

Under the proposed legislation, lessees will contribute 3% of the royalty payable, up from the current 2% to the National Mineral Exploration Trust (NMET), soon to be renamed the National Mineral Exploration and Development Trust (NMEDT). This increase is expected to boost the Trust’s annual corpus from ₹1,000 crore to ₹2,500 crore. 

“This amount would be required to meet the enhanced scope and territorial domain of the Trust. An expenditure of ₹8,700 crore in the next 5 years is envisaged from the Trust under the National Critical Mineral Mission,” Reddy stated. The trust’s role will now also include financing overseas acquisitions of strategic mineral assets.

Mineral Exchange and Market Regulation

The amendments also aim to modernise the mineral trade by empowering the Centre to promote the development of markets, including trading in minerals, concentrates, and metals through a mineral exchange. “Setting up mineral exchanges will help miners and end-users of minerals in determining fair and transparent market prices based on supply and demand dynamics,” Reddy said. 

The bill provides for the registration and possible revocation of mineral exchanges, alongside strict regulations to curb cartelisation, insider trading, circular trading, market manipulation, and other harmful practices to protect market participants.

Also Read: GAIL and HCL Sign MoU to Develop Critical Mineral Resources for Clean Energy!

Conclusion

By raising the NMET contribution rate and broadening its mandate, the government seeks to secure critical mineral supply lines and strengthen India’s strategic position. With a focus on overseas acquisitions, domestic market reforms, and transparent pricing, the proposed changes blend resource security with market efficiency, supporting the nation’s long-term mineral and economic goals.

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