Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which restricts States’ powers to levy taxes on mineral rights and mineral-rich lands.
The Lok Sabha passed the Bill on August 12, while the Rajya Sabha cleared it on August 13, 2026; the government rejected demands to refer it to a Parliamentary Committee.
The Bill seeks to regulate major minerals such as coal, limestone, iron ore, copper and manganese, while States will continue to have powers over 49 minor minerals.
The Centre said the move aims to ensure uniform mineral rates across India and maintain central control over key minerals needed for industries.
According to the government, States’ share of overall mineral revenue has increased from 65% in 2014–15 to 85%, while their share of coal revenue rose from 51% to 96%.
The government stated that the Centre receives about 11% of mineral revenue, while around 88% goes to States, and claimed that no State would suffer revenue loss due to the amendment.