The Mines and Minerals (Development and Regulation) Amendment Bill, 2026:
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was introduced in Parliament to establish a uniform, Centre-directed fiscal framework for mining and restrict state-level taxes on mineral rights and mineral-bearing lands.
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026:
- The MMDR Amendment Bill, 2026 amends the principal Mines and Minerals (Development and Regulation) Act, 1957 to curb multiple, cascading state levies and establish central conditions on mineral taxation.
- It responds to the Supreme Court’s 2024 nine-judge Constitution bench ruling in Mineral Area Development Authority (MADA) v. SAIL, which recognized the constitutional power of states to tax mineral rights and mineral-bearing lands, while holding that royalty is not a tax.
Key Features of the Bill:
- Union Regulation of Mineral-Bearing Lands: Amends Section 2 of the MMDR Act to explicitly extend the Central Government’s regulatory control over “mineral-bearing lands” as per prescribed parameters.
- Capping State Levies (New Section 9D): Prohibits state governments from imposing any tax, cess, or levy on mineral rights or mineral-bearing lands (whether based on quantity, value, or royalty) except in accordance with conditions or restrictions prescribed by the Centre.
- Retrospective Invalidation of Unpaid Levies: Declares that all unpaid or unrecovered dues of state levies on mineral rights and lands from before the commencement of the amendment are deemed invalid.
- No Refund on Deposited Amounts: Specifies that state taxes or cesses already collected or deposited by mining companies prior to the amendment will not be refunded.
- Delegated Rule-Making Power (Section 13): Empowers the Central Government to frame executive rules specifying the exact parameters, conditions, and ceilings under which states can levy mineral taxes.
