The Lok Sabha has approved a comprehensive overhaul of India’s mining regulations, preventing states from imposing extra taxes on mineral rights and centralising oversight to promote economic stability and attract investments.
The Lok Sabha on Wednesday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, by voice vote and without debate, as the government pressed ahead with a fresh overhaul of India’s mining rules. The Bill would stop states from imposing extra taxes, cesses or similar charges on mineral rights and would also bring mineral-bearing land under tighter central oversight. It was introduced by Coal and Mines Minister G Kishan Reddy amid protests from opposition MPs.
According to the text of the Bill, state governments would be barred from levying any additional tax, cess or other charge on mineral rights, while similar limits would apply to mineral-bearing land based on factors such as quantity, value or royalty. The proposal also says any such levy that has not been collected or deposited before the amendment takes effect would be treated as invalid, although sums already paid to state governments would not have to be refunded.
Reddy said the changes were intended to bring greater certainty and stability to the mining tax regime, which the government says is necessary for economic growth, lower transport costs and a more predictable investment climate. He argued that uneven state taxes can encourage companies to bypass local supply chains, raise the cost of minerals and even increase imports despite adequate domestic resources. The minister also warned that retrospective levies can create legal uncertainty and damage investor confidence.
The latest measure follows a series of federal interventions in the sector. In 2023, the Ministry of Mines said Parliament had cleared reforms that widened the scope for central auctions of critical minerals, altered the treatment of certain atomic minerals and created new exploration licences for deep-seated and strategic deposits. A separate amendment proposal introduced in 2025 sought to raise industry contributions to the National Mineral Exploration and Development Trust and relax limits on sales from captive mines, showing how the government has kept revisiting mining policy as it pushes for a more centralised framework.
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