🔴 By| Gitanjali Thorat
New Delhi: Parliament has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, paving the way for major changes in the regulation and taxation of mineral resources across India.
The Bill was introduced in the Lok Sabha on August 10. It was passed by the Lok Sabha on August 12 and subsequently cleared by the Rajya Sabha on August 13, 2026.
🟡 Restrictions on States’ Power to Tax Mineral Rights
The key provision of the legislation is to place restrictions on the power of state governments to impose taxes, cess and other levies on mineral rights and mineral-bearing lands.
The government has argued that varying taxes and levies imposed by different states have increased the financial burden on the mining industry and created uncertainty for investors and operators. The Bill seeks to establish reasonable limitations and greater uniformity in mineral taxation.
🟡 Why Has the Government Brought the Bill?
According to the Bill’s stated objectives, the mining sector has faced several challenges, including unpredictable taxes introduced after mining operations began, multiple levies on mineral production and dispatch, differences in tax rates between states and retrospective taxation.
The proposed changes are aimed at reducing these uncertainties and creating a more predictable regulatory environment for the mining sector.
🟡 Centre-State Powers in Focus
The legislation could have significant implications for the financial relationship between the Centre and mineral-rich states. The issue is particularly significant because the Supreme Court had earlier recognised the states’ power to impose taxes on mineral rights.
The new legislation therefore places the balance between state revenue powers and the Centre’s role in regulating mineral taxation at the centre of the debate.
🟡 What Happens Next?
With both Houses of Parliament having passed the Bill, it will now require Presidential assent before becoming law.
The MMDR Act, 1957 is India’s principal central legislation governing the development and regulation of mines and minerals. The 2026 amendment seeks to modify this framework, particularly in relation to taxation of mineral rights and mineral-bearing lands.
