Introduction
Parliament passed the landmark Mines and Minerals (Development and Regulation) Amendment Bill, 2026, on 13 August 2026, with the Lok Sabha clearing it on August 12 and the Rajya Sabha passing it on August 13. The legislation establishes a uniform national regulatory architecture for major minerals, restricting states' unbridled powers to levy state-level cesses and taxes on mineral rights.
Key Legislative Provisions and Federal Balance
The amendments introduce significant structural changes to the parent MMDR Act, 1957:
- Regulation of Major Minerals: Restricts state tax powers exclusively over major industrial minerals such as coal, iron ore, limestone, bauxite, copper, and manganese to ensure national price uniformity and prevent supply chain distortion.
- Minor Minerals Retained with States: States retain complete administrative and royalty jurisdiction over 49 minor minerals (such as sand, gravel, and building stone).
- Revenue Growth for States: Government data highlighted that states' overall mineral revenue share increased from 65% in 2014–15 to 85% in 2025–26, with coal revenue share rising from 51% to 96%, ensuring zero revenue loss for mineral-producing states.
Key Facts
- Legislation: Mines and Minerals (Development and Regulation) Amendment Bill, 2026
- Passed By: Lok Sabha (12 August) & Rajya Sabha (13 August 2026)
- Parent Act: MMDR Act, 1957
- Scope: Regulates major minerals (coal, iron ore, copper) while preserving state rights over 49 minor minerals
- State Revenue Share: States receive 85% to 88% of total mineral revenues
Exam Perspective
For UPSC and TNPSC examinations, this topic falls under Indian Polity, MMDR Act 1957, Centre-State Legislative & Financial Relations (Seventh Schedule Entry 54 Union List vs Entry 23 State List), and Mining Sector Reforms in GS Paper II and GS Paper III.
Conclusion
The passage of the MMDR Amendment Bill 2026 ensures uniform pricing for critical industrial minerals while maintaining robust non-tax revenue flows to state treasuries.