Parliament passes Mines Bill 2026

On Thursday, the Indian Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026. Both houses approved the bill through a voice vote. This amendment grants the central government the authority to regulate state governments' authority to levy taxes, cesses, or other charges on mineral rights or mineral-bearing land.

Following the Rajya Sabha's approval, Mines Minister G Kishan Reddy spoke to journalists. He explained that heavy fiscal burdens render mining operations commercially unviable, discourage mineral extraction, reduce mineral production, and occasionally result in mine closures. Addressing concerns from opposing MPs about the bill potentially violating constitutional provisions, Reddy clarified that the central government would not receive any share of the mining tax proceeds. He emphasized that the states would remain the primary beneficiaries.

Earlier, The Economic Times reported on January 1, 2025, that the central government was contemplating limiting excessive mining taxes imposed by states. This move comes in the wake of a 2024 Supreme Court ruling that permitted states to impose additional taxes on mining activities within their jurisdictions. In response, Karnataka, Jharkhand, and Tamil Nadu introduced new mining taxes.

Reddy stated that any fiscal burden placed on mining operations should be regulated by a unified and equitable fiscal framework nationwide. He stated that the framework for implementing these limitations on states will be established. While introducing the bill in the Lok Sabha, Reddy highlighted the need to prevent the cumulative impact of various levies from becoming disproportionate to the economic value and profitability of mining operations.