Amid Opposition protests, Lok Sabha clears Mines and Minerals Amendment Bill, Pg11

Key Highlights:

• The Lok Sabha has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, amidst protests from Opposition members.
• The Bill aims to prevent State governments from imposing additional taxes, cesses, or levies on mineral rights and mineral-bearing lands.
• It seeks to grant the Centre greater control over regulating mineral-laden lands, in addition to its existing powers over mines and mineral development.
• Coal and Mines Minister G. Kishan Reddy stated the amendments will bring certainty and predictability to the mineral sector, reducing costs and encouraging domestic supply chains.
• The Opposition criticized the Bill, arguing it undermines federalism and the fiscal autonomy of states, especially after a 2024 Supreme Court ruling affirming state powers to tax mineral rights.

Detailed Insights:

• The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, amends the Mines and Minerals (Development and Regulation) Act, 1957.
• A key provision is the insertion of a new Section 9D, which explicitly prohibits states from levying taxes or cesses on mineral rights or mineral-bearing lands, except as prescribed by the Central Government.
• The Bill also defines "mineral bearing land" and brings its regulation under Union control, expanding the Centre's jurisdiction.
• It retrospectively invalidates any state taxes or levies on mineral rights or mineral-bearing lands that were not collected before the commencement of the Amendment Act.
• The government's rationale is to create a uniform and predictable fiscal framework to attract investment and boost the exploration and development of critical minerals.
• Opposition parties, including the Revolutionary Socialist Party, argued that the Bill infringes upon the financial powers of states and goes against the spirit of federalism.
• The move follows a July 2024 Supreme Court judgment that had upheld the constitutional validity of state taxes on mineral rights, making the Bill a legislative override.

Key Concepts Involved:

• Mines and Minerals (Development and Regulation) Act, 1957: The principal central legislation governing the development and regulation of mines and minerals in India.
• Federalism: A system of government where power is divided between a central authority and constituent political units, such as states.
• Cess/Levies: Additional taxes imposed by the government for specific purposes, often not shared with state governments, unlike general taxes.