Minister: Mining Bill Won't Affect State Resource Rights
A new amendment to India's mining law, passed on August 13, 2026, will not infringe on states' rights over their resources, according to Union Minister G. Kishan Reddy. The legislation focuses on major minerals and aims for uniform taxation to stabilize prices.
Key takeaways
- The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, passed on August 13, 2026, will not infringe upon states' rights over their resources, according to Union Minister G. Kishan R
- The amendment applies to major minerals and aims to ensure uniform taxation rates to stabilize prices, excluding minor minerals where states retain absolute control.
- The legislation will facilitate the establishment of a coal and minerals exchange, with India's first coal exchange expected in eight to nine months.
- States' share in overall mineral revenues has increased substantially between fiscal years 2014-15 and 2024-25.
Union Minister G. Kishan Reddy stated on August 13, 2026, that the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, does not impinge on states' rights concerning their natural resources. The legislation, passed by Parliament, primarily targets major minerals to foster growth and price stability.
Reddy clarified that the amendment excludes minor minerals, over which states retain full control regarding exploration, production, land acquisition, and taxation. The government's objective is to establish consistent taxation rates across major minerals to prevent price spikes, emphasizing that the Union government is not seeking to acquire control over states' resources.
The bill's scope includes specific major minerals such as coal, lithium, and nickel. It applies to 11 states: Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and Goa. The Minister highlighted that the states' share in overall mineral revenues has increased significantly from fiscal year 2014-15 to 2024-25.
Additionally, Reddy indicated that the proposed legislation would facilitate the establishment of a structure for a coal and minerals exchange, aiming to spur major mineral production. An Indian coal exchange is anticipated within eight to nine months.
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, passed by the Rajya Sabha on August 12, 2026, includes provisions that states do not levy taxes or cess on mineral-bearing lands and their operations. The legislation had faced opposition from some states, notably Kerala, over concerns about federal structure and state powers.
Sources reviewed
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