Mines and Minerals (Development and Regulation) Amendment Bill, 2026 Passed

Key Facts

• The Bill was introduced in Lok Sabha on 10 August 2026 by the Union Minister of Coal and Mines, G. Kishan Reddy, and was passed by Lok Sabha on 12 August and Rajya Sabha on 13 August 2026.
• The amendment centralises the regulation of mineral-bearing lands, putting them under the control of the Central Government.
• States are restricted from imposing independent taxes, cesses, or levies on mineral rights or mineral-bearing lands unless authorised under conditions or restrictions prescribed by the Central Government.
• The Bill invalidates any past, unrecovered, or undeposited taxes levied by State Governments before the enactment, but does not require refund of taxes already collected.
• Leaseholders can add multiple minerals to existing leases, including lithium, cobalt, graphite, gold, and silver, without additional payments or royalties.
• It removes the existing cap on the sale of minerals from captive mines, allowing sale beyond the previous 50% limit after meeting end-use requirements.
• The Bill faced opposition from several quarters on the ground that it restricts the fiscal powers of the States regarding taxation of mineral resources.

Background & Context

The Mines and Minerals (Development and Regulation) Act, 1957, has been the primary legislation governing mineral development and regulation in India. Initially, mineral rights and leases were largely regulated at the State level, with the Central Government managing certain parameters such as royalty rates and mining rules.

This amendment aims to create a more uniform mineral tax and regulatory regime under the Central Government to address issues such as multiple and retrospective taxes imposed by states, which led to unpredictable costs and discouraged mineral extraction and investment.

Constitutionally, the Bill raises questions about the division of powers between the Union and the States, particularly under Entries 54 (Union List), 49, and 50 (State List) related to regulation of mines and taxation of mineral-bearing lands and rights.

Why This Matters for Exams / Exam Relevance

The amendment is highly relevant in the context of Indian Polity and Governance, particularly regarding the interpretation of the distribution of legislative and fiscal powers between the Union and the States.

It also relates to economic development themes, mining sector reforms, and resource management, including India's agenda of mineral security and sustainable industrial progress.

Understanding this Bill helps in exam questions related to federalism, mineral resource governance, and economic policy reforms.

Points to Remember

• The Bill was passed on 12-13 August 2026.
• Introduced by Union Minister of Coal and Mines, G. Kishan Reddy.
• Amends the Mines and Minerals (Development and Regulation) Act, 1957.
• Transfers regulatory control of mineral-bearing lands to the Central Government.
• Limits states’ powers to impose taxes, cesses, or levies on mineral rights and mineral lands unless authorized by Central Government rules.
• Leaseholders can add critical and strategic minerals to existing leases without additional payments.
• Removes the cap on sale of minerals from captive mines (from 50% previously to now unrestricted sale after meeting end-use).
• Invalidates undeposited or unrecovered past taxes but does not allow refund of taxes already collected by states.
• Opposition exists due to perceived infringement on states’ fiscal autonomy and constitutional powers.