The Lok Sabha on Wednesday passed the Mines and Minerals (development and regulation) Amendment Bill, 2026, which aims to restrict state governments from imposing taxes, cesses or levies on minerals rights and ‘mineral-bearing lands’, via voice vote sans debate amid opposition protests.
The bill, which amends the Mines and Minerals (development and regulation) Act, 1957, was introduced on Monday by minister of coal and mines G Kishan Reddy. It was passed in the second half of the Lok Sabha session on Wednesday, with Jagdambika Pal, who was in the chair, beginning proceedings by asking the Opposition to maintain decorum.
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The amendment bill introduces a new section that says that “no tax, cess or such other levy (by whatever name called) shall be imposed by the state Government on mineral rights; or mineral bearing lands, either based on mineral quantity or mineral value or royalty payable…except in accordance with such conditions or restrictions as may be prescribed by the Central Government..”
The bill also proposes to expand the central government’s powers to regulate mines to mineral bearing lands having ore content in accordance with the parameters prescribed under the MMDR Act.
{{/usCountry}}The bill also proposes to expand the central government’s powers to regulate mines to mineral bearing lands having ore content in accordance with the parameters prescribed under the MMDR Act.
{{/usCountry}}The proposed amendments are the fallout of a July 2024 ruling by the Supreme Court that upheld the power of states to levy taxes on mineral rights and and mineral-bearing lands.
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The bill clarifies any tax, cess or other levy which is not deposited with the state government or recovered by it before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2026, will be deemed to be invalid at all material times. However, those already deposited, will not be liable to be refunded.
PMK chief Anbumani Ramadoss urged the Centre to immediately withdraw the proposed amendment bill, warning that it usurps the taxation rights of state governments.