Current Affairs
Mains issueGS-2News & Analysis24 August 2026

Digging for gold

Source: thehindu.comOriginal report

Understand the issue · 1/2

Why now

01

The article discusses the Mines and Minerals (Development and Regulation) Amendment Act, 2026, which has sparked controversy, particularly in Odisha. The amendment expands the Union government's control from 'regulation of mines' to 'regulation of mines and mineral-bearing land' and prohibits State governments from imposing taxes, cesses, or other levies on mineral rights or mineral-bearing lands. This move is seen by many stakeholders, including former Odisha CM Naveen Patnaik, as a significant erosion of states' authority over their mineral resources and a detrimental impact on their fiscal interests. The amendment also appears to offset a recent Supreme Court judgment that affirmed states' power to collect taxes on mines and minerals, potentially costing Odisha thousands of crores in retrospective dues and future revenues. The article highlights the economic dependence of mineral-rich states like Odisha on mining revenue and the social and environmental costs borne by local, often tribal, communities, raising concerns about accountability and welfare programs.

Core issue

02

The article discusses the Mines and Minerals (Development and Regulation) Amendment Act, 2026, which has sparked controversy, particularly in Odisha. The amendment expands the Union government's control from 'regulation of mines' to 'regulation of mines and mineral-bearing land' and prohibits State governments from imposing taxes, cesses, or other levies on mineral rights or mineral-bearing lands. This move is seen by many stakeholders, including former Odisha CM Naveen Patnaik, as a significant erosion of states' authority over their mineral resources and a detrimental impact on their fiscal interests. The amendment also appears to offset a recent Supreme Court judgment that affirmed states' power to collect taxes on mines and minerals, potentially costing Odisha thousands of crores in retrospective dues and future revenues. The article highlights the economic dependence of mineral-rich states like Odisha on mining revenue and the social and environmental costs borne by local, often tribal, communities, raising concerns about accountability and welfare programs.

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