What is the latest mining amendment Act about? |Explained
The opposition to the proposed act primarily centres on a potential subversion to the federal structure of how revenue from mining resources is taxed, especially in resource-rich and States which particularly depend on taxing the resources for revenue.
The latest Mines and Minerals (Development and Regulation) Act amendment, passed by the Rajya Sabha on August 12, 2026, aims to eliminate tax and cess levies imposed by States on mineral and mineral bearing lands. The legislation seeks to establish stability, certainty, and predictability in the fiscal regime of the mineral sector.
States like Tamil Nadu and Jharkhand had imposed mineral-bearing land taxes, leading to concerns over price arbitrage and elevated consumer prices for raw materials such as limestone and coal. The amendment, set to take effect retrospectively, will invalidate any levies imposed before its enforcement. Critics, including Odisha and Jharkhand, argue the bill infringes upon their constitutional powers and fiscal autonomy.
The government refutes these claims, emphasizing the aim is to ensure equitable pricing and growth across the mining sector.
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