From Lease to Land: Untangling MMDR, MCDR & Mining Rules in India

From Lease to Land: Untangling MMDR, MCDR & Mining Rules in India

• Blogs
• Sep 06, 2025

Picture Arjun, a young entrepreneur from Odisha. He dreams of starting a bauxite mine because aluminium smelters are expanding rapidly. But mining isn’t like opening a roadside shop—you can’t just grab a shovel and dig. There’s a well-defined legal and procedural journey, and each stop is guided by different laws and rules.

First up is the MMDR Act of 1957, India’s mining constitution. It outlines who can mine, where mines can happen, and for how long. For example, the MMDR Amendment Act, 2023, ushered in a transparent auction process for critical and strategic minerals, empowering the central government to auction mining leases and composite licences directly. Arjun must win such an auction to legally access bauxite.

But how does Arjun apply? That’s where the Mineral Concession Rules (MCR), also called the “Action Rules,” come in. These rules provide the precise checklist—forms, documents, and fees—needed to apply for exploration or mining leases. 

After Arjun’s application gets approved, the real work begins. Here’s where MCDR (Mineral Conservation & Development Rules) step in. These rules ensure he mines responsibly—mandating submission of mining plans, drone surveys, and restoration of mined land. If he skips these, his operations could face penalties or suspension.

And this isn’t just theory. In 2025, India launched its first exploration licence auctions across states like Assam, Kerala, and J\&K for deep-seated minerals. Over 195 exploration projects are underway, supported by the National Mineral Exploration Trust (NMET), which funded projects worth ₹712 crore in just one year.

So here’s Arjun’s journey—told simply:

* The MMDR Act lays the legal tracks.

* The MCR gives him the train ticket.

* The Composite Licence fast-tracks his ride.

* The MCDR ensures he drives safely.

* The NMET and auctions fuel the whole system.