Parliament passes Mines and Minerals Amendment Bill, 2026

By admin September 1, 2026 5:47 pm IST

Parliament has passed the Mines and Minerals Amendment Bill, 2026, aiming to bring greater uniformity and predictability to mineral taxation. The reform is expected to support mining investment, domestic mineral supply and downstream infrastructure and manufacturing sectors.

Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, clearing a key reform aimed at bringing greater certainty and uniformity to taxation and levies in India’s mining sector. The Rajya Sabha approved the Bill on August 13, a day after it was passed by the Lok Sabha. Introduced on August 10, the legislation amends the MMDR Act, 1957, and is expected to have significant implications for mineral extraction, infrastructure, construction and manufacturing industries.

The central provision of the amendment is the proposed insertion of Section 9D, under which States will not be able to impose taxes, cess or other levies on mineral rights or mineral-bearing land based on mineral quantity, mineral value, royalty or otherwise, except in accordance with conditions or restrictions prescribed by the Central Government. The Bill also brings mineral-bearing lands within the Union’s regulatory framework. The government said the reform addresses concerns over multiple and uneven levies, unpredictable taxation after mining operations begin, and retrospective imposition of taxes, which can increase extraction costs and discourage domestic mineral production.

The amendment also provides retrospective relief on certain unpaid or unrecovered State levies imposed before the new law takes effect. Such dues would be treated as invalid, while amounts already deposited or recovered would not be refundable. The move follows the Supreme Court’s 2024 ruling affirming States’ power to tax mineral rights, making the Bill particularly significant for Centre-State fiscal relations.

For mining and downstream sectors, the government expects a more predictable fiscal regime to support investment, domestic mineral supply and critical-mineral security. The Bill will come into force on a date notified by the Central Government after enactment.