Current Affairs
Mains issueGS-2Editorials17 September 2026

Mining amendment is unfair to States

Source: thehindu.comOriginal report

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Why now

01

The article critically analyzes the Mines and Minerals (Development and Regulation) Amendment Act (MMDR), 2026, specifically Section 9D, which restricts State Governments' power to impose taxes or levies on mineral rights and mineral-bearing land. It highlights the conflict between the Centre's objective of creating a predictable tax environment for investment and the States' concerns regarding fiscal autonomy, revenue generation, and the constitutional division of taxation powers. The piece discusses the federal implications, referencing the Supreme Court's 2024 judgment in Mineral Area Development Authority vs. Steel Authority of India, which recognized States' legislative power to tax mineral rights and land, arguing that the amendment risks undermining this ruling and narrowing States' fiscal choices.

Core issue

02

The article critically analyzes the Mines and Minerals (Development and Regulation) Amendment Act (MMDR), 2026, specifically Section 9D, which restricts State Governments' power to impose taxes or levies on mineral rights and mineral-bearing land. It highlights the conflict between the Centre's objective of creating a predictable tax environment for investment and the States' concerns regarding fiscal autonomy, revenue generation, and the constitutional division of taxation powers. The piece discusses the federal implications, referencing the Supreme Court's 2024 judgment in Mineral Area Development Authority vs. Steel Authority of India, which recognized States' legislative power to tax mineral rights and land, arguing that the amendment risks undermining this ruling and narrowing States' fiscal choices.

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