New Delhi, Aug 20: India’s mining sector is set for a fresh investment push following the notification of the Mines and Minerals (Development and Regulation) Amendment Act, 2026, with the reform expected to bring greater certainty to the industry and improve the viability of mining operations.
The Steel Authority of India Limited (SAIL) has welcomed the legislation, saying the new framework could support investment, mine development and more efficient use of domestic mineral resources.
The reform seeks to provide greater predictability in the fiscal framework governing mineral resources. For an industry that requires significant upfront capital and long project timelines, greater clarity can help companies make investment decisions with more confidence.
For SAIL, which operates captive iron ore and coal mines, the changes could improve the viability of mining operations and support further development of its mineral resources. Stronger captive supplies could also provide greater raw-material security for the company’s steel production.
A more efficient domestic mining sector could benefit the wider economy as well. Increased mineral production can generate demand for heavy machinery, transportation, logistics, engineering and construction services, while creating additional employment opportunities in mining regions.
Greater availability of domestically produced minerals could also reduce the exposure of Indian industries to international price fluctuations and supply disruptions. This is particularly important for steel, infrastructure, manufacturing and other mineral-intensive sectors.
The reform comes at a time when India is strengthening domestic manufacturing and seeking more resilient supply chains. Improved mining viability could encourage fresh investment in exploration, extraction and related infrastructure, helping the country make better use of its natural resources.
The overall impact will depend on effective implementation and coordination between the Centre, states and industry. However, greater policy certainty could provide a stronger foundation for long-term investment in the mining sector.
The latest reform is therefore expected to support not only mining companies but also the broader industrial economy by improving domestic raw-material availability, encouraging investment and strengthening India’s manufacturing capabilities.