Parliament passes MMDR Amendment Bill curbing states’ mineral levies; Kishan Reddy assures no revenue loss

The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, passed by both houses of Parliament, aims to restrict states from imposing certain levies on mineral rights and mineral-bearing lands, barring such levies as prescribed by the central government. This legislation was passed despite the Supreme Court's previous rulings upholding states' authority to levy taxes on mineral rights and land, as well as allowing them to collect tax arrears without interest or penalties since April 1, 2005.

The bill is expected to eliminate any unpaid or unrecovered dues arising from state-imposed levies before its enactment. The reason behind this amendment is to bring uniformity in mineral prices and prevent inflation and infrastructure cost escalation. It applies exclusively to major minerals such as coal, iron ore, bauxite, manganese, and copper, affecting around 11 mineral-producing states.

Major minerals are primarily regulated by the central government, while minor minerals are regulated by state governments. The amendment intends to balance mineral prices across the country, as disparities in mineral prices could lead to industries relocating to cheaper states. However, the government assures that states' finances will not be adversely affected, as they already collect all taxes and levies on major minerals.