Indian states oppose mining law amendment
Analysis based on 22 articles · First reported Aug 13, 2026 · Last updated Aug 17, 2026
The amendment could reduce state-level mining revenues, potentially impacting state budgets and welfare spending in mineral-rich states like India — Jharkhand and India — Kerala. Conversely, it may improve fiscal predictability for mining companies, potentially boosting investment in the sector.
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, passed by both Houses of Parliament on August 13, restricts states' powers to levy taxes, cesses, and other imposts on mineral rights and mineral-bearing lands, subject to conditions prescribed by the central government. The Bill also invalidates certain past state levies that remain uncollected. Chief Ministers of India — Kerala and India — Jharkhand, V.D. Satheesan and Hemant Sood, have written to Prime Minister Narendra Modi urging reconsideration, citing constitutional and fiscal concerns. They argue the amendments undermine states' taxation powers recognized by the Supreme Court's 2024 judgment and threaten state revenues and welfare programs. The India — Ministry of Mines defends the Bill, stating it brings stability and predictability to the mining sector, does not reduce states' revenue share, and aims to boost domestic investment. India — Jharkhand CM Soren also wrote to President Droupadi Murmu and Congress leader Rahul Gandhi, and reserved the right to pursue legal remedies.
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