RS passes mining Bill, minister says won't affect states' revenue, Pg8

Key Highlights:

• The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 has been passed by both Lok Sabha and Rajya Sabha.
• The Bill prohibits states from imposing specific levies on mineral rights and mineral-bearing lands, except as prescribed by the Centre.
• Union Mines Minister G Kishan Reddy stated the legislation would not lead to revenue loss for states.
• The Supreme Court in 2024 had upheld states' power to levy tax on mineral rights and mineral-bearing land.
• The amendment will extinguish unpaid dues from such levies imposed before its commencement, estimated at around Rs 2 lakh crore.
• The Bill primarily targets major minerals like iron ore, coal, bauxite, manganese, and copper, affecting about 11 mineral-producing states.

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Detailed Insights:

• The amendment aims to bring greater uniformity in major mineral prices and prevent their contribution to inflation and infrastructure costs.
• The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) differentiates between major minerals, regulated by the Centre, and minor minerals, largely regulated by states.
• Rising prices of major minerals directly impact infrastructure activities, such as cement costs due to limestone or steel rates due to iron ore.
• The Minister clarified that all taxes and levies on major minerals are collected by state governments, not the Centre.
• State revenue from the mineral sector increased from Rs 13,258 crore in 2014-15 to Rs 71,035 crore in 2024-25.
• Existing levies in the mineral sector, including environmental cess and pollution cess, will continue to be in place.

Key Concepts Involved:

• Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act): Principal legislation governing mining and mineral development in India.
• Major Minerals: Minerals specified in the First Schedule of the MMDR Act, primarily regulated by the Central government.
• Minor Minerals: Building stones, ordinary clay, ordinary sand, etc., whose regulation is largely entrusted to state governments.
• Cess/Levies: Additional taxes or fees imposed by the government for specific purposes, often on top of existing taxes.