SAIL Welcomes MMDR Amendment Act 2026, Says Reform Will Strengthen Mineral Security and Iron Ore Supply
The Steel Authority of India Limited (SAIL) has welcomed the Mines and Minerals (Development and Regulation) Amendment Act, 2026, notified by the Central Government on August 17, describing it as a significant reform aimed at providing greater predictability in the mineral sector and strengthening India’s long-term mineral security.
The amendment is expected to bring greater clarity and uniformity to mineral taxation and related levies while addressing pending retrospective liabilities. According to SAIL, these measures will provide increased certainty and confidence to the mining industry and create a more predictable fiscal environment for mineral producers.
For SAIL, which operates substantial captive iron ore and coal mines, the reform is expected to have a direct bearing on the viability and development of its mining operations. Greater certainty in the fiscal regime could facilitate investment, mine development and more efficient utilisation of the company’s mineral resources.
SAIL said the changes are expected to provide further impetus to iron ore mining by improving the economic viability of captive mining operations. The company’s captive mines play an important role in ensuring the availability of raw materials required for its steel production, making the reform significant for its long-term supply chain security.
More Iron Ore for Domestic Market
One of the important expected outcomes of the reform is increased availability of iron ore in the domestic market.
With improved viability and further development of its captive mines, SAIL will be able to make additional quantities of iron ore available for sale in the market, subject to the applicable regulatory framework. The move could strengthen domestic supply chains and improve access to indigenous iron ore for the Indian steel industry.
The availability of additional domestic iron ore is also expected to support steel producers by strengthening raw-material security and reducing vulnerabilities associated with external supply sources. For a country seeking to expand domestic steel production and reduce dependence on imports, increased availability of locally produced iron ore could provide an important advantage.
Boost to Investment and Production
The reform is expected to encourage higher levels of investment and production in the mining sector by creating greater policy and fiscal certainty. SAIL said improved viability of mining operations could support the development of mineral resources while contributing to India’s broader objectives of strengthening mineral and energy security.
Higher domestic production of iron ore could also help reduce import dependence and improve the competitiveness of mineral-based industries. A stronger domestic raw-material ecosystem would benefit the steel sector as well as industries linked to mining, transportation, manufacturing and infrastructure.
The amendment comes at a time when India is seeking to strengthen domestic capabilities across critical sectors and build resilient supply chains. Ensuring reliable access to key minerals is considered essential for supporting industrial growth, infrastructure development and the country’s long-term manufacturing ambitions.
Focus on Sustainable Mineral Development
SAIL said it remains committed to the responsible and sustainable development of its mineral resources. The company emphasised that strengthening captive raw-material security and making greater quantities of iron ore available to the domestic market would remain important components of its strategy.
The company said the reforms would support efforts to improve the utilisation and development of its mineral assets while contributing to the wider objectives of self-reliance.
The MMDR Amendment Act, 2026, is therefore expected to have implications beyond fiscal certainty for mining companies. By supporting investment, mine development and higher mineral production, the reform could contribute to strengthening India’s domestic raw-material base.
SAIL said its efforts would remain aligned with the national vision of an Atmanirbhar Bharat and Viksit Bharat, with a focus on strengthening mineral security, supporting the domestic steel industry and ensuring sustainable development of the country’s natural resources.
