The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to limit the authority of states to levy taxes on mineral rights and mineral-bearing lands, has been passed in Parliament.
After the bill was passed in the Lok Sabha last Wednesday, the Rajya Sabha approved it on Thursday (Aug. 13), the last day of the monsoon session. The bill will become law after receiving the President’s assent.
When the Rajya Sabha convened on Thursday morning, routine business was set aside and the above bill was taken up for discussion. At the same time, opposition MPs shouted slogans demanding that Home Minister Amit Shah come to the House and explain the police action against students in Delhi; and that there be a discussion on the alleged donation irregularities at the Ayodhya Ram temple.
Union Minister's response: Amid the uproar, Union Minister for Mines G. Kishan Reddy responded to the brief discussion. He said:
The above bill has not been introduced with the intention of interfering in the autonomy or revenue rights of state governments. Rather, its aim is to ensure uniform mineral royalties across the country.
The central government has been trying to regulate key minerals such as coal, limestone, iron ore, copper, and manganese. At the same time, the powers over more than 49 minor minerals will continue to remain with the state governments.
Coal is extremely important for power generation. Seventy-three percent of the country’s electricity generation comes from coal. During the previous Congress government, there were irregularities in the allocation of coal mines. However, for the past 12 years, mine allocations have been carried out transparently through auctions. Unlike in the past, no mine allocations have been made on the basis of recommendations.
No revenue loss will occur: The states’ share in mineral revenue, which was 65 percent in 2014-15, has now increased to 85 percent; in terms of coal revenue, the states’ share has risen from 51 percent to 96 percent.
Only 11 percent of the total mineral revenue goes to the central government. Since 88 percent goes to the states, he said that the amendment would not cause any revenue loss to any state.
Following this, DMK’s Tiruchi Siva’s request that the bill be sent to a select committee of the Rajya Sabha was rejected, and the bill was passed by voice vote.
Some opposition MPs insisted that a recorded vote be held on the bill. However, amid the uproar, House Chairman C.P. Radhakrishnan refused, saying that a vote could not be conducted in that manner.
