The Rajya Sabha approved changes to the Mines and Minerals Act on August 12, 2026. The measure clarifies that states cannot impose taxes or cesses on minerals, mineral-bearing lands, or related activities. Several mineral-rich states, such as Odisha and Jharkhand, opposed the bill, claiming it infringes on their constitutional authority. The law aims to create stability and uniformity in mineral sector taxation, preventing price differences across states. Earlier, Tamil Nadu and Jharkhand had introduced taxes on mineral-bearing lands. Industry groups welcomed the change, expecting increased investment and production. The legislation applies retroactively, nullifying uncollected levies. Critics argue it undermines federal revenue structures, as many states rely heavily on mineral receipts. Leaders from affected states warned of revenue losses and impacts on public programs. The Union government stated the goal is equal taxation rates to avoid price spikes, while preserving state control over minor minerals. The rules cover major minerals like coal and iron ore in eleven states.
