Now Reading: Rajya Sabha passes mining amendment barring State mineral levies
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Rajya Sabha passes mining amendment barring State mineral levies
The Rajya Sabha passed an amendment to the Mines and Minerals (Development and Regulation) Act on August 12, 2026. It bars States from imposing taxes, cesses or similar levies on mineral rights,…
The Story in Brief
The Rajya Sabha passed an amendment to the Mines and Minerals (Development and Regulation) Act on August 12, 2026. It bars States from imposing taxes, cesses or similar levies on mineral rights, mineral-bearing land and related operations. The law applies retrospectively, invalidating eligible levies that were due but not collected before enforcement. The Hindu reports that Tamil Nadu and Jharkhand had imposed mineral-bearing land taxes of Rs 160 and Rs 100 per metric tonne respectively.
Mineral-rich States, including Odisha and Jharkhand, oppose the measure, saying it weakens their fiscal autonomy. The Centre says it seeks uniform prices for major minerals and does not affect State control over minor minerals. Union Minister G. Kishan Reddy said the measure covers 11 States and minerals including coal, iron ore, lithium and nickel. The Federation of Indian Mineral Industries expects greater certainty for mining investment.
The Indian Opinion
The loudest claims on both sides need testing. Calling the law a complete takeover of State resources ignores the Centre’s position that minor minerals remain with States. Calling it a painless price reform ignores the revenue dependence of mineral-rich States and the retrospective effect. The practical test is whether mineral prices and mining investment improve without widening the fiscal gap in States such as Odisha and Jharkhand.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
