New Delhi/Ranchi/Thiruvananthapuram: Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, that seeks to curb taxation of minerals by state governments, prompting a warning of a “massive agitation” by the chief minister of mineral-rich Jharkhand.
A week after the Supreme Court ruling, the Jharkhand assembly passed a bill which provided for varying degrees of tax on different minerals mined in the state on a per-metric-tonne basis. Kerala chief minister V.D. Instead, the Bill was rushed through Parliament with barely any meaningful debate.
The Act was further amended in the 2025 budget session to increase the cess on mined minerals in the state by up to four times. Officials said the state government projected revenue of ₹ 14,656 crore from the Mineral Bearing Land Cess in the 2026-27 budget and had earmarked these funds for welfare schemes. Satheesan said the amendment bill effectively transfers states’ rights and authority over land under Schedule 18 of the State List of the Constitution to the jurisdiction of the Union government, which was against federal principles.The legislation, by defining land as mineral-bearing, does not even exclude forests and coastal areas, he said. In the debate in the Rajya Sabha, the mines minister cited Entry 54 of the Union List, which empowers Parliament to regulate mines and mineral development in public interest, and said taxation was an important tool for regulating and developing the sector. “I had written to the Hon’ble Speaker at the time of introduction of the Mines & Minerals Amendment Bill, 2026, urging its referral to the DRSC for detailed scrutiny.
Because of the amendments, he said the Centre receives only about 11 per cent of mineral revenue, with 88 per cent going to states, and asserted that no state would suffer any revenue loss.
If Standing Committees, parliamentary scrutiny and debate can simply be bypassed, what exactly is Parliament being reduced to a rubber stamp?,” Senthil said on X.
It will become law after receiving the President’s assent. “The Centre passed it in haste, tying Jharkhand’s hands and feet. The bill, which amends the Mines and Minerals (Development and Regulation) Act, 1957, cleared Rajya Sabha after a truncated debate on the last day of the Monsoon session on Thursday, with Opposition MPs saying it infringes on states’ rights and curbs their fiscal autonomy. Under the bill, the Centre will regulate major minerals (coal, limestone, iron ore, copper, manganese), while states will retain control over 49 minor minerals, he said. Hemant Soren, the chief minister of Jharkhand, which holds nearly 40% of India’s mineral reserves, said the amendment bill undermines the state’s rights over its mineral resources and entitlements.
Responding to the debate in the Rajya Sabha, Union Mines Minister G Kishan Reddy said that the legislation standardizes national mineral rates without infringing on state autonomy or revenues. Jharkhand will launch such a massive agitation to oppose it that the entire nation would see,” Soren said in a post on X. Soren pointed out that the amendment bill will curb fiscal space for social welfare schemes, saying Jharkhand will have to stop all its programmes providing social security to millions.Soren said he has written to the President against the bill.
It was passed by the Lok Sabha, where it saw little debate , a day earlier.
