Overview
- The Union government introduced the Mines and Minerals (Development and Regulation) Amendment Bill in the Lok Sabha on Monday, August 10, 2026, to limit state powers to levy taxes, cesses or other charges on mineral rights and defined mineral-bearing land.
- The bill would add a new Section 9D that bars states from imposing levies on mineral rights or mineral-bearing lands except under conditions the Centre prescribes and would treat levies that were not deposited or recovered before the law takes effect as invalid while protecting amounts already collected.
- The proposal also expands central regulatory reach by defining and bringing ‘mineral-bearing land’ under the MMDR Act using parameters the Centre will set, which shifts oversight from a focus on mining activity to the land that contains minerals.
- State leaders and Opposition MPs have urged the bill be sent to the Parliamentary Standing Committee and warned it undermines federal fiscal powers, while government ministers and some industry advisers say the change will cut legal uncertainty, shrink legacy liabilities and boost investment in critical minerals like lithium and nickel.
- Analysts and critics say the law could reduce states’ revenue streams used for local remediation and services and expect legal and political fights that may include court challenges and demands for rulemaking that preserves funds for environmental and local impacts.