India parliament passes bill curbing states' power to tax mining

The Indian Parliament has passed the Mines and Minerals Amendment Bill, 2026, restricting states from levying taxes or cess on mineral-bearing lands to ensure uniform national pricing. While Union Minister G. Kishan Reddy asserts the law protects state rights and only targets major minerals like coal and lithium across 11 states, regional governments like Kerala have strongly opposed the bill, calling it an encroachment on federal structure and state constitutional powers.

Amendment Bill parliamentary passage

• ▪The Indian Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, on August 13, 2026, after approval from both the Lok Sabha and the Rajya Sabha.
• ▪The Rajya Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, through a voice vote on August 13, 2026.

Federal taxation authority expansion

• ▪The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, allows the Indian federal government to set conditions and limits on taxes and other levies imposed on mining.
• ▪The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, seeks to prevent Indian states from levying any tax or cess on mineral-bearing lands and their operations.

State mineral revenue rights

• ▪Union Minister for Coal and Mines G. Kishan Reddy stated that the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, does not impinge upon the rights of Indian states over their resources.
• ▪The state of Kerala and other Indian states opposed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, arguing that it overrides the federal structure and encroaches upon constitutional powers.

Major minerals coverage scope

• ▪The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, encompasses only major minerals, leaving absolute control and revenue dynamics of minor minerals to the states.
• ▪The list of major minerals covered under the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, includes coal, lignite, iron ore, graphite, cobalt, lithium, and nickel.
• ▪The provisions of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, encompass 11 Indian states, including Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and Goa.

Coal exchange market reforms

• ▪The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, seeks to establish a suitable structure for a proposed coal and minerals exchange to spur production.
• ▪Indian government officials stated that India is expected to establish its first coal exchange within eight to nine months from August 2026.

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