New Delhi: The Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to restrict states’ powers to levy taxes on mineral rights and mineral-bearing lands.
The Lok Sabha had passed the bill on Wednesday, while the Rajya Sabha cleared it on Thursday, completing the parliamentary approval process. The bill will become a law after receiving the President’s assent.
Replying to the debate in the Upper House, Mines Minister G Kishan Reddy said the legislation does not seek to interfere with the autonomy or revenue rights of states, but aims to ensure uniform mineral rates across the country.
Reddy said the Centre was seeking to regulate major minerals such as coal, limestone, iron ore, copper and manganese, while states would continue to have powers over 49 minor minerals.
Defending the government’s approach, Reddy said coal was crucial for power generation, with 73 per cent of India’s electricity generation coming from coal.
For Indian industry to remain competitive globally, availability of electricity is crucial.
He also alleged that coal blocks allocated were a “scam” during the previous Congress-led government, while claiming that mineral allocations over the past 12 years had been transparent and through auctions. Unlike past, no block has been allocated on nomination basis.
Reddy said states’ share of mineral revenue had risen from 65 per cent in 2014-15 to 85 per cent now, while their share of coal revenue had increased from 51 per cent to 96 per cent.
He said the Centre receives only about 11 per cent of mineral revenue, with 88 per cent going to states, and asserted that no state would suffer any revenue loss because of the amendment.
The minister cited Entry 54 of the Union List, which empowers Parliament to regulate mines and mineral development in public interest, and said taxation was an important tool for regulating and developing the sector.
The truncated debate on the bill was held amid slogan shouting by Opposition MPs, who since the start of the monsoon session sought the presence of Home Minister Amit Shah in the House to respond to concerns over police using brutal force against students protesting at Jantar Mantar in the national capital over leak of medical college entrance exam papers.
They also raised slogans against the alleged theft of donations made to Ram Temple at Ayodhya.
The Minister replied to the debate amid sloganeering by the Opposition MPs.
The bill was passed after the House negated by a voice vote an amendment moved by Trichi Siva of DMK seeking referal of the bill to a select committee of the Rajya Sabha.
Some opposition MPs wanted a division of votes on the amendment but Chairman C P Radhakrishnan said such exercise could not be taken up amid din in the House.
