Lok Sabha passes bill restricting states’ power to tax minerals amid protests
Here's the latest protest news from across India:
The Lok Sabha on Wednesday passed the Mines and Minerals (development and regulation) Amendment Bill, 2026, which aims to restrict state governments from imposing taxes, cesses or levies on minerals rights and ‘mineral-bearing lands’, via voice vote sans debate amid opposition protests.
Adding to this, The bill was passed amid opposition protests. (Sansad TV/ANI Video Grab) The bill, which amends the Mines and Minerals (development and regulation) Act, 1957, was introduced on Monday by minister of coal and mines G Kishan Reddy. It was passed in the second half of the Lok Sabha session on Wednesday, with Jagdambika Pal, who was in the chair, beginning proceedings by asking the Opposition to maintain decorum.
Meanwhile, The amendment bill introduces a new section that says that “no tax, cess or such other levy (by whatever name called) shall be imposed by the state Government on mineral rights; or mineral bearing lands, either based on mineral quantity or mineral value or royalty payable…except in accordance with such conditions or restrictions as may be prescribed by the Central Government..”
Notably, The bill also proposes to expand the central government’s powers to regulate mines to mineral bearing lands having ore content in accordance with the parameters prescribed under the MMDR Act.
As per the latest buzz, The proposed amendments are the fallout of a July 2024 ruling by the Supreme Court that upheld the power of states to levy taxes on mineral rights and and mineral-bearing lands.
In further updates, The bill clarifies any tax, cess or other levy which is not deposited with the state government or recovered by it before the commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2026, will be deemed to be invalid at all material times. However, those already deposited, will not be liable to be refunded.
On top of that, PMK chief Anbumani Ramadoss urged the Centre to immediately withdraw the proposed amendment bill, warning that it usurps the taxation rights of state governments.
Jasjeev Gandhiok is an Assistant Editor with Hindustan Times, where he covers environment, climate change, the clean energy transition and wildlife at the National Bureau. Gandhiok has over a decade of experience in journalism and is based in Delhi. He has reported extensively on Delhi and the National Capital Region (NCR). This includes the region's air pollution woes, a polluted Yamuna and on urban wildlife still thriving in the region. He joined HT in October 2021. Prior to that, he had five-year stint at The Times of India in Delhi, where he also covered Delhi, with a focus on environment and wildlife. Gandhiok has covered some recent events around the Capital too, ranging from the farmers' protests, the northeast Delhi riots and the CAA-NRC protests, reporting from the ground on all of these. He also travels across the country to report on how environment and climate change impact everyday life, while also writing on endangered species. His reports in 2019 on toxic leachate from Delhi's landfills led to the National Green Tribunal (NGT) taking suo motu cognisance and ultimately asking the state government to start bio-mining to flatten and remove all three landfills in the capital. He also closely tracks the implementation of government policies on climate, renewable energy and environmental protection. His focus remains on impactful, public-interest journalism which explains how environmental decisions affect people's everyday lives. Read More
Source: Hindustan Times