MMDR Amendment Bill, 2026 Passed by Parliament to Regulate State Levies on Mineral Rights

Key facts

• The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 (MMDR Amendment Bill, 2026) was passed by Parliament after the Rajya Sabha approved it on August 13, 2026, following the Lok Sabha's approval on August 12, 2026.
• The Bill empowers the Centre to prescribe conditions on states' taxes, cess and other levies on mining rights and mineral-bearing lands, and will become law after the President's assent.
• Under the new framework, states cannot impose additional taxes, cess or other levies on mineral rights and mineral-bearing land unless they comply with the conditions prescribed by the Centre.
• The legislation gives the Centre regulatory oversight of mineral-bearing land containing mineral resources, expanding its role beyond mine regulation and mineral development.
• It provides for invalidation of unpaid or uncollected levies that states may have sought to impose before the new law comes into force.
• Coal and Mines Minister G Kishan Reddy said the Bill affects only major minerals, does not impact states' powers over 49 minor minerals, and mainly impacts around 11 to 12 mineral-producing states.
• The Bill follows the 2024 Supreme Court nine-judge Bench ruling that states can levy taxes on mineral rights separately from royalty under the MMDR Act.