Jharkhand CM Urges PM to Reconsider Mining Bill Due to Financial Impact

Why It Matters

Chief Minister Soren stated that restrictions on state levies related to mining could lead to a substantial reduction in Jharkhand's revenue. This financial impact, he warned, would directly affect the state's capacity to fund essential development projects, welfare initiatives, and social security programs. He expressed concern that an abrupt loss of fiscal resources without alternative revenue sources could undermine the state's ability to continue its programs, potentially leading to public dissatisfaction and social tension in mining-affected regions. He also noted that Public Sector Undertakings operating in Jharkhand have derived significant economic value from the state's mineral resources and a fair share of this value should benefit the local population and regions of extraction.

Background

Jharkhand is a significant contributor to India's mineral wealth, accounting for approximately 40% of the country's minerals. The state argues that decades of large-scale mining have resulted in considerable social and environmental costs, including displacement, land alienation, environmental degradation, and pollution. Revenue generated from minerals, including royalties and other statutory contributions, currently enables the state to invest in infrastructure such as roads and drinking water, as well as healthcare, education, livelihood support, and rehabilitation efforts in affected areas. The Mineral Bearing Land Cess was introduced as an additional fiscal tool to bolster these interventions. The Chief Minister also linked mineral revenue to welfare schemes like the Mukhyamantri Maiyaa Samman Yojana, aimed at empowering women.

Key Facts

• Jharkhand Chief Minister Hemant Soren wrote to Prime Minister Narendra Modi urging reconsideration of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026.
• The bill restricts states' powers to levy taxes on mineral rights and mineral-bearing lands.
• Mining revenue accounted for 84.9% of Jharkhand's own non-tax revenue in 2024-25.
• The Mineral Bearing Land Cess was expected to generate around ₹7,110 crore annually.
• Jharkhand holds about 40% of India's mineral resources.
• Large-scale mining in Jharkhand has led to displacement, land alienation, environmental degradation, and pollution.
• Revenues from minerals fund development and welfare programs in the state.
• Public Sector Undertakings derive significant economic value from Jharkhand's mineral resources.