BusinessBreaking
Archived — This article has been archived. The information may be outdated.
Minister says mining law leaves minor minerals to states
The Hindu··14 Aug
Union Coal and Mines Minister G Kishan Reddy said the Mines and Minerals Amendment Bill 2026, passed by Parliament on August 13, does not take away states' rights over minor minerals. He said the law covers specified major minerals in eleven states. Reddy told reporters the aim was identical taxation rates so prices do not spike.
Prism
What It Means For You
- If your state depends on sand, gravel or clay revenue, Reddy said those 49 minor minerals stay under state exploration, auction and tax powers.
- Mining firms in the eleven listed states can expect Centre-set conditions on extra cesses on coal, iron ore and similar major minerals.
- Kerala residents can note the state has already flagged a court challenge once the Bill becomes an Act.
What's Happening
- Parliament passed the MMDR Amendment Bill 2026, with the Rajya Sabha clearing it on August 12 and the Lok Sabha on August 13 without a debate.
- Reddy said the Centre is not acquiring control over state resources and that minor-mineral revenue, auctions and cesses remain unchanged.
- Officials said India could see a coal and minerals exchange in eight to nine months, which Reddy linked to needing similar prices across states.
Why Parliament Reopened State Mineral Tax Powers
- The 2024 Mineral Area Development Authority judgment said states could tax mineral rights under the State List unless a Union mineral-development law set limits.
- Major minerals named in the government memo include coal, lignite, iron ore, graphite, cobalt, lithium and nickel.
- The eleven states cited are Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and Goa, with the minister's count given as eleven.
all-newseditors-picks
