How a new mining Bill threatens to reignite Centre vs state tensions
The passage of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, has reignited a long-running tussle over the taxation of mineral resources and the revenues they generate.
The passage of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, in both Houses of Parliament has reignited a long-running tussle between the Centre and states over the taxation of mineral resources and the revenues they generate.
The amendments seek to restrict states from imposing specified levies on mineral rights and mineral-bearing land, even as several mineral-rich states have begun exploring such levies following the Supreme Court’s landmark 2024 ruling upholding their power to tax mineral rights.
The move has drawn sharp opposition from states. Jharkhand Chief Minister Hemant Soren has threatened protests against the amendments, saying they could significantly dent the state’s prospective revenue, while Kerala Chief Minister V D Satheesan has raised concerns over their implications for India’s federal structure.
