Jharkhand Chief Minister Hemant Soren on Thursday urged Prime Minister Narendra Modi to reconsider the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, saying restrictions on state levies could significantly reduce the state's fiscal space and affect its ability to address the social and environmental costs of mining. In a letter to Modi, Soren said mining revenue accounted for 84.9% of the state's own non-tax revenue in 2024-25, according to the State Economic Survey for 2025-26. The chief minister also sought intervention from President Droupadi Murmu, describing the Mineral Bearing Land Cess as expected to generate around ₹7,110 crore annually. Soren warned that any substantial restriction on this revenue would directly affect Jharkhand's ability to sustain development, welfare and social-security interventions. The CM also linked mineral-related fiscal capacity to welfare initiatives, including the Mukhyamantri Maiyaa Samman Yojana, which he described as a flagship programme for women's economic empowerment.
Union Mines Minister G Kishan Reddy has clarified that the MMDR Amendment Bill 2026 applies only to major minerals and does not affect states' powers over minor minerals, addressing concerns raised by Kerala and other non-BJP ruled states. According to Business Standard, Reddy stated that the Centre was not seeking to take away the rights of states through the MMDR Amendment Bill, 2026, but wanted to ensure that differences in levies did not create distortions in the cost of major minerals across the country. Major minerals include vital metallic and fuel ores like coal and iron ore, while minor minerals consist of local building and construction materials like sand, gravel, and ordinary clay. The minister emphasized that the Bill would have no impact on the 49 minor minerals, for which states would continue to retain their existing powers relating to exploration, mining, auctions, mineral rights and taxation.
Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to restrict states' powers to levy taxes on mineral rights and mineral-bearing lands. According to The Hindu BusinessLine, the Lok Sabha had passed the bill on Wednesday, while the Rajya Sabha cleared it on Thursday, completing the parliamentary approval process. The bill will become a law after receiving the President's assent. The proposed changes come against the backdrop of Supreme Court's July 2024 judgment in the Mineral Area Development Authority versus Steel Authority of India case, where a nine-judge Constitution Bench held that states have the power to tax mineral rights under Entry 50 of the State List. On August 14, 2024, a Supreme Court order stated that states could impose or renew taxes on mineral rights and land in line with its July judgment, but such tax demands would apply only to transactions from April 1, 2005, onwards. The Bill now seeks to alter this framework, providing that any tax, cess or other levy on mineral rights or mineral-bearing lands that has not been deposited with or recovered by the state government before the amended law comes into force would be deemed invalid at all material times.
States' share of mining revenue rose to 88% in 2024-25 from 65% a decade earlier, while the Centre's share fell to 12%, according to government data shared by Union Minister G Kishan Reddy. According to The Hindu BusinessLine, states' share in mineral revenue has increased from ₹13,258 crore in 2014-15 to ₹71,035 crore in 2024-25, while the central government's collection has risen marginally from ₹7,102 crore to ₹8,932 crore. In the coal sector specifically, states' revenue increased from ₹11,948 crore in 2014-15 to ₹58,592 crore in 2024-25, with their share rising from 55% to 96%, while the Centre's share declined from 45% to 4%. Reddy noted that 100% of the auction premium and royalty goes to states, while funds collected under the District Mineral Foundation are used for local-area development. The minister emphasized that the new legislation will not impact the fiscal position of any state, and the revenues of state governments would continue to increase in tandem with production growth.
Jharkhand accounts for about 40% of the country's minerals, making it one of India's most significant mining states. Soren argued that the state's mineral wealth must be assessed alongside the heavy costs borne by the state and its people. He cited decades of large-scale mining that have resulted in displacement, land alienation, environmental degradation, pollution, pressure on local infrastructure and disruption of traditional social and cultural systems. The CM emphasized that revenues from minerals, including royalty, District Mineral Foundation contributions and other statutory receipts, enable the state to invest in roads, drinking water, healthcare, education, livelihood support, rural infrastructure, rehabilitation and social security in mining-affected areas. Soren questioned provisions seeking to extend Union regulation to mineral-bearing lands, arguing they could intrude into a field constitutionally assigned to the states. He also called for consultations with mineral-producing states, including Odisha and Karnataka, before restrictions are prescribed under the proposed law, suggesting a structured mechanism along the lines of the GST Council.
Congress leaders announced that states ruled by the INDIA (Indian National Developmental Inclusive Alliance) bloc would challenge the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, as the disruption-hit Monsoon Session ended on Thursday. According to Business Standard, Congress general secretary Jairam Ramesh claimed that state governments will challenge the Mines and Minerals Bill in the Supreme Court, escalating the political opposition beyond individual state governments. The announcement comes after the Parliament passed the Bill on the concluding day of the Monsoon session without a significant debate, with this session recording one of the worst productivity levels for the Parliament in over two decades. Union Parliamentary Affairs Minister Kiran Rijiju accused the Opposition of "running away" from a debate, calling it "unfortunate" that elaborate discussions on key Bills could not take place. In a separate development, Soren also called for consultations with mineral-producing states, including Odisha and Karnataka, before restrictions are prescribed under the proposed law, suggesting a structured mechanism along the lines of the GST Council.
