Bill restricts States' power to tax mineral rights, cites fiscal burden as reason
This document is the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, introduced in the Lok Sabha by the Minister of Coal and Mines. It seeks to restrict State Governments' power to impose taxes and levies on mineral rights and mineral-bearing lands, aiming to create a uniform fiscal framework for the mining sector.
State Governments, the Central Government, mining industry operators, and citizens affected by mineral costs.
- Inserts a new Section 9D into the Mines and Minerals (Development and Regulation) Act, 1957.
- Prohibits State Governments from imposing any tax, cess, or other levy on mineral rights or mineral-bearing lands (based on quantity, value, royalty, or otherwise) except in accordance with conditions prescribed by the Central Government.
- Declares any such tax or levy not deposited with or recovered by the State Government before the Bill's commencement as invalid at all material times.
- Specifies that taxes or levies already deposited or recovered before the Bill's commencement are not liable to be refunded.
- Amends Section 2 to include 'mineral bearing lands' under Union control for regulation.
- Amends Section 13 to empower the Central Government to make rules prescribing conditions for State taxes on minerals.
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Document details
| Official title | Section 9D and the limits of undoing MADA: Can Parliament fetter the States' Entry 49 power? |
| Source body | Government documents surfaced by the press |
| Reference number | 122dbeae4af0fd81 |
| Status | closed (parliament) |
| Year | — |
| Closing date | — |
| Documents | 1 |