Parl clears bill to curb states’ tax on minerals; Soren warns of stir

Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 on Thursday, aiming to limit state governments' taxation of minerals. This bill amends the Mines and Minerals (Development and Regulation) Act, 1957 and will take effect after the President's approval. Union Mines Minister G Kishan Reddy stated that the legislation standardizes national mineral rates while preserving state autonomy and revenues.

The bill regulates major minerals (coal, limestone, iron ore, copper, manganese) centrally, while 49 minor minerals remain under state control. The bill's objective is to prevent industries from bypassing local supply lines due to excessive taxes and levies, which could lead to suboptimal market development, higher transportation costs, and pollution.

The bill introduces a new section prohibiting states from imposing taxes, cesses, or levies on mineral rights or mineral-bearing lands, except as prescribed by the Central Government. This follows the Supreme Court's July 2024 ruling upholding states' right to levy taxes on mineral resources and mineral-bearing lands, which was seen as a significant victory for mineral-rich states but raised concerns among mining companies.

Jharkhand Chief Minister Hemant Soren warned of a massive public uprising, stating that the amendment bill undermines the state's rights over its mineral resources and could hinder social welfare programs. He has also written a letter to the President against the bill.