Passage of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026
The Indian Parliament, during its Monsoon session on August 13, 2026, passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026. This Bill aims to restrict the powers of States regarding the taxation of mineral rights and mineral-rich lands. Despite opposition criticism, the Bill was cleared by both the Lok Sabha and the Rajya Sabha.
Criticism and Defense
- Opposition parties claimed the Bill contradicts the fiscal federalism guaranteed by the Constitution and sought to have it scrutinized by a Parliamentary Standing Committee.
- Union Mines Minister G. Kishan Reddy defended the Bill, asserting it does not infringe upon State autonomy but ensures uniform mineral rates across India.
Key Provisions and Impact
- The Bill aims to regulate major minerals such as coal, limestone, iron ore, copper, and manganese.
- States will retain control over 49 minor minerals, while the Centre focuses on those critical for national competitiveness.
- Mineral revenue shares for States have significantly increased: from 65% in 2014-15 to 85% currently, and coal revenue shares from 51% to 96%.
- The Centre's share remains at about 11%, with 88% of mineral revenue flowing to the States.
- Minister Reddy assured that States would not face any revenue loss due to the amendment.
Opposition Concerns
- Rashtriya Janata Dal’s Manoj K. Jha highlighted the Bill's detrimental impact on fiscal federalism and its neglect of tribal community concerns.
- CPI(M)’s V. Sivadasan noted how the Bill could undermine the federal character of revenue-sharing.
Conclusion
The Bill was passed despite opposition attempts to stall it, including a rejected notice by Congress member Praveen Chakravarty and an amendment by DMK's Tiruchi Siva. The government proceeded with the Bill, emphasizing transparency and uniformity in mineral regulation.
