India’s Parliament has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to restrict states’ ability to levy taxes on mineral rights and mineral-bearing land while establishing greater uniformity in mineral rates across the country.
The Rajya Sabha approved the legislation on Thursday, a day after it cleared the Lok Sabha. The bill will become law once it receives presidential assent.
Defending the legislation in the Upper House, Mines Minister G. Kishan Reddy said the measure would not interfere with states’ autonomy or undermine their revenue rights. He said the Centre’s objective is to regulate major minerals, including coal, limestone, iron ore, copper and manganese, while states will retain authority over 49 minor minerals.
Reddy argued that uniformity in mineral taxation is important for maintaining the competitiveness of Indian industry, particularly because of the country’s dependence on coal for electricity generation. He said coal accounts for approximately 73 per cent of India’s electricity generation.
Centre Says States Will Not Lose Revenue
Addressing concerns about the financial impact of the legislation, Reddy said states’ share of mineral revenue had increased from 65 per cent in 2014-15 to 85 per cent currently. Their share of coal revenue, he said, had risen from 51 per cent to 96 per cent over the same period.
According to the minister, approximately 88 per cent of overall mineral revenue currently goes to states, while the Centre receives about 11 per cent. He maintained that no state would suffer a revenue loss because of the amendment.
Reddy also cited Entry 54 of the Union List, which gives Parliament authority to regulate mines and mineral development in the public interest. He argued that taxation can be used as a regulatory tool in developing the mineral sector.
The minister also criticized the previous Congress-led government’s handling of coal-block allocations, alleging irregularities, while saying mineral allocations over the past 12 years have been conducted transparently through auctions rather than nominations.
Bill Passed Amid Opposition Protests
The Rajya Sabha debate took place amid protests and slogan-shouting by Opposition MPs over several unrelated issues.
Opposition members have been demanding that Home Minister Amit Shah address concerns over alleged police action against students protesting at Jantar Mantar over reported leaks of medical college entrance examination papers. MPs also raised allegations concerning donations made to the Ram Temple in Ayodhya.
DMK MP Trichi Siva moved an amendment seeking to send the minerals bill to a Rajya Sabha select committee. The amendment was defeated by a voice vote.
Some Opposition MPs subsequently sought a formal division of votes, but Rajya Sabha Chairman C. P. Radhakrishnan said a division could not be conducted amid the disruption in the House.
With approval from both chambers of Parliament secured, the legislation now awaits the President’s assent.
