The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was passed by Parliament in August 2026 to establish a predictable, uniform, and rationalized mineral taxation framework across India.
Here are 10 key points about the legislation: MMDR Amendment Bill, 2026
- It amends the core Mines and Minerals (Development and Regulation) Act, 1957 to regulate mineral-bearing lands and rights centrally.
- The Ministry of Mines states it prevents uneven, heavy, and non-uniform state taxes that hurt mining viability.
- It introduces New Section 9D to restrict state governments from imposing arbitrary taxes, cess, or levies on mineral rights and lands.
- State levies on mineral quantity, value, or royalty now require conditions or restrictions prescribed by the Central Government.
- All unpaid or unrecovered past/retrospective state dues from before the amendment are declared invalid.
- Taxes, cess, or statutory amounts already deposited or recovered prior to the act will not be refunded.
- Existing state rights over land ownership, general mineral revenues, and taxation of minor minerals remain unaffected.
- It aims to protect small and medium-scale operators from unpredictable cost spikes and operational closures.
- Lower and more stable raw material costs are expected to benefit power generation, manufacturing, and infrastructure.
- The reform aligns with the broader national vision of a self-reliant and competitive Viksit Bharat.