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The mineral sector is regulated through the Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act) enacted by Parliament, and the rules thereunder and the changes in the law (and rules) and the policy have generally been going in step. The MMDR Act was amended in 2015, primarily to make auction the sole mode of granting mineral concessions (i.e. prospecting licences and mining leases). Some consequential changes were also made in the rules: the National Mineral Policy (NMP) of 2019 is thus primarily a revision of NMP of 2008. One of the important consequences of the change in the law (and now in the policy as well) is that, despite some phrases in the policy to the contrary, the private sector no longer has an incentive to do exploration to locate minerals at their own risk and cost, since that will not enable them to claim mining rights, as these rights will be auctioned to the highest qualifying bidder (Kumar 2019).

On National Mineral Policy 2019 — balancing stakeholder interests and concerns: National Mineral Policy 2019: a Remedy as Bad as the Disease?