Mines and Minerals Amendment Bill 2026: Stability, investment, and what states keep
Synopsis
India imported minerals worth ₹10,12,529 crore in FY26 — and the government says steep, uneven state levies are part of the problem. The Mines and Minerals Amendment Bill 2026 attempts to fix that without touching states' 90% share of mining revenue, a balancing act that will define whether the law attracts long-cycle investment or triggers a Centre-state standoff.
Key Takeaways
The Mines and Minerals Amendment Bill, 2026 has been passed to bring fiscal stability and attract investment to India's major minerals sector.
States currently levy around 14 types of taxes and charges on mining operations; the amendment targets uneven and steep levies.
Around 90 per cent of total mining revenue accrues to states — over ₹5 lakh crore between FY16 and FY26 ; the Centre confirmed this share will not change.
India imported minerals worth ₹10,12,529 crore in FY26 , underlining the strategic case for boosting domestic mining.
States retain full powers to regulate and tax minor minerals ; the amendment does not alter those rights.
The bill is framed as a step toward Atmanirbhar Bharat and the Viksit Bharat 2047 vision.
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, passed by Parliament, is designed to bring long-term fiscal stability to India's major minerals sector and draw fresh investment into mining, the Centre said on 15 August 2026. The government clarified that the amendment targets uneven and steep state-level levies that, it argues, undermine the competitiveness of domestic minerals and drive unnecessary reliance on imports.
What the Amendment Addresses
The government's core concern, as stated in an official clarification note, is that unconstrained and uneven state levies are weakening public interest by making domestic minerals uncompetitive against imports — even when India holds abundant local reserves. The amendment to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) seeks to introduce certainty, stability, and predictability in the fiscal regime governing the sector.
Presently, states levy around 14 types of taxes, charges, fees, and other levies on mining operations. These include royalty, auction premium, dead rent, contributions to the District Mineral Foundation (DMF), Goods and Services Tax (GST), transit fee, and others. The amendment aims to check the fragmentation of the national minerals market that such a patchwork of levies creates.
States Retain 90 Per Cent of Mining Revenue
The Centre has been emphatic that the amendment does not strip states of their rights over land and minerals. 'The amendment Bill will not take away any of the rights of the States on land and minerals or any tax on minerals collected by the States,' the official statement said. Currently, around 90 per cent of total taxes and statutory payments in mining accrue to the states — and the government confirmed this arrangement will continue after the amendment.
Data cited in the clarification note underscores the scale of state earnings from mining: over ₹5 lakh crore has accrued to major mining states between FY16 and FY26, while revenue to the Centre over the same period was only ₹82,000 crore. The amendment also leaves untouched the power of states to regulate and tax minor minerals.
The Import Bill and Atmanirbhar Bharat
The economic case for the amendment is anchored in a striking figure: India imported minerals worth ₹10,12,529 crore in FY26. Minerals are critical inputs for infrastructure, manufacturing, and energy security — making the import dependence a strategic vulnerability. The government argues that domestically uncompetitive pricing, driven in part by steep state levies, is incentivising imports despite local availability.
The amendment is positioned as a building block for Atmanirbhar Bharat and the broader Viksit Bharat 2047 vision, with increased domestic mining investment intended to reduce that import exposure over time.
What Happens Next
With the bill now passed, the focus shifts to implementation — specifically, how the Centre will define the boundaries of permissible state levies without triggering political friction with mineral-rich states. Industry bodies and state governments will be watching the subordinate legislation closely. The government's stated intent is to attract long-cycle mining investment, which requires the kind of fiscal predictability that year-on-year levy changes currently prevent.
Point of View
And by how much? Mineral-rich states like Odisha, Jharkhand, and Chhattisgarh have historically treated mining as a fiscal lever — and any central ceiling on that lever will face resistance regardless of aggregate revenue guarantees. The ₹10,12,529 crore import bill is a compelling headline, but import substitution in minerals requires more than fiscal predictability; it requires faster environmental clearances and dispute resolution — neither of which this amendment addresses. The real test of the bill's ambition will come in the subordinate legislation, not the Parliament vote.
NationPress
15 Aug 2026
Frequently Asked Questions
What is the Mines and Minerals Amendment Bill 2026?
It is an amendment to the Mines and Minerals (Development and Regulation) Act, 1957, passed in 2026 to bring fiscal stability to India's major minerals sector by checking uneven and steep state-level levies. The bill aims to make domestic minerals more competitive, reduce import dependence, and attract long-term mining investment.
Will states lose revenue or rights under this amendment?
No. The Centre has clarified that states will retain approximately 90 per cent of total mining revenue, as they do currently. The amendment does not affect states' rights over land and minerals or their power to tax minor minerals.
Why does India need this amendment now?
India imported minerals worth ₹10,12,529 crore in FY26, reflecting heavy dependence on foreign supplies despite domestic reserves. The government argues that fragmented and steep state levies make domestic minerals uncompetitive, incentivising imports — a strategic and economic vulnerability the amendment seeks to address.
How much have states earned from mining in the past decade?
Major mining states collectively received over ₹5 lakh crore in mining revenue between FY16 and FY26, compared to only ₹82,000 crore for the Centre over the same period.
How does this bill connect to Viksit Bharat 2047?
The government has positioned the amendment as a step toward Atmanirbhar Bharat and Viksit Bharat 2047 by aiming to reduce mineral import dependence, increase domestic mining investment, and support India's infrastructure, manufacturing, and energy security goals.
