New Delhi: 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, 2026, describing it as a significant reform for creating a more predictable fiscal regime and long-term policy certainty in the mineral sector.
The reform is expected to provide greater clarity and uniformity in mineral taxation and levies while addressing pending retrospective levies. According to SAIL, these measures can improve confidence across the mining industry and support long-term investment and development.
Greater Fiscal Certainty for Mining Sector
The MMDR Amendment Act, 2026 is expected to bring greater predictability to the fiscal framework governing mineral resources.
Key benefits highlighted by SAIL include:
- Greater clarity and uniformity in mineral taxation and levies
- Addressing of pending retrospective levies
- Improved policy certainty for the mining industry
- Greater confidence for long-term investments
- Support for mineral production and mine development
SAIL said a more predictable fiscal regime will help mining companies make better long-term investment and operational decisions.
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SAIL to Benefit From Captive Iron Ore and Coal Mines
SAIL operates substantial captive iron ore and coal mining operations, which are critical for securing raw materials for its steel production.
The company expects the reform to improve the viability of its mining operations and facilitate further investment and mine development.
The expected benefits include:
- Improved viability of captive mining operations
- Greater investment in mine development
- More efficient utilisation of mineral resources
- Strengthened long-term raw material security
- Higher potential for iron ore production
The company said greater fiscal predictability will support the efficient development of its mineral resources and help boost iron ore mining.
More Iron Ore Could Become Available in Domestic Market
A key potential outcome of the reform is increased availability of iron ore in the domestic market.
With improved viability and development of its captive mines, SAIL expects to be able to make additional iron ore available for sale in the market, subject to the applicable regulatory framework.
This could help:
- Strengthen domestic iron ore supply chains
- Improve availability of indigenous iron ore
- Support India’s steel industry
- Reduce dependence on imported raw materials
The increased availability of domestic iron ore could provide additional support to India’s mineral and steel value chain.
Reform Expected to Support Investment and Production
SAIL said the reform is expected to encourage higher investment and production in the mineral sector.
The company believes the measures can contribute to broader economic and strategic objectives, including:
- Reducing import dependence
- Strengthening mineral and energy security
- Improving resource utilisation
- Enhancing the competitiveness of mineral-based industries
- Supporting domestic supply chains
The reform could therefore have implications beyond individual mining companies by strengthening India’s overall mineral resource ecosystem.
SAIL Reaffirms Focus on Responsible Mineral Development
SAIL said it remains committed to the responsible and sustainable development of its mineral resources.
The company will continue to focus on strengthening captive raw-material security while making greater quantities of iron ore available to the domestic market, in line with the vision of an Atmanirbhar and Viksit Bharat.
About SAIL
Steel Authority of India Limited (SAIL) is one of India’s largest steel producers and a Maharatna public sector enterprise under the Ministry of Steel, Government of India. The company operates integrated steel plants and captive mines and plays an important role in India’s steel production and raw-material security.
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