Mining Amendment law does not impinge upon States’ rights: Minister
Coal and Mines Minister G. Kishan Reddy says the legislation extends to only major minerals across eleven States
Union Minister for Coal and Mines G. Kishan Reddy stated on August 13, 2026, that the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, does not seek to infringe upon the rights of States over their resources. The legislation primarily aims at ensuring growth and equitability in the overall ecosystem, Reddy told reporters.
The amendment applies to certain major minerals, and not to minor minerals, over which States retain absolute control. Reddy emphasized that the government's primary objective is to ensure identical tax rates to prevent effective prices from spiking. He further noted that the ratification of the legislation does not alter the revenue dynamics for minor minerals, including exploration, production, land acquisition, block auctions, and the imposition of State taxes and cess.
The list of major minerals under the proposed law includes coal, lignite, iron ore, graphite, cobalt, lithium, and nickel. Reddy argued that the Union government has ensured a higher flow of revenue to States, with their share increasing from 65% to 88% between 2014-15 and 2024-25, and reaching 96% from 55% during the same period.
The proposed legislation also seeks to establish a structure for a proposed coal and minerals exchange to spur major mineral production. Reddy stated that differing rates would hinder the market for entities with higher prices, making similar prices crucial. Officials reported that India is expected to have its first coal exchange within eight to nine months.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
