Senior Congress leader and former Rajasthan Chief Minister Ashok Gehlot on Tuesday, 11 August urged the Bhajan Lal Sharma-led state government to formally oppose the proposed Mines and Minerals (Development and Regulation) Amendment Bill (MMDR Amendment Bill) in Parliament, warning that the legislation could strip Rajasthan of significant control over its mineral wealth and associated revenues.

Gehlot's Core Warning

In a post on social media platform X, Gehlot alleged that the Central government is seeking to consolidate greater authority over mineral-rich land and the taxes, royalties, and cesses linked to mineral resources. He cautioned that the Bhajan Lal Sharma government's silence on the matter could amount to a 'betrayal' of Rajasthan's mineral revenue and the employment it sustains.

Gehlot pointed out that Rajasthan operates 34,445 mines, generates approximately ₹10,394 crore in annual revenue from the mining sector, and provides livelihoods to around 30 lakh people.

The Disputed Provision: Section 9D

Gehlot specifically criticised the proposed Section 9D of the amendment, which, according to him, would prevent states from recovering certain outstanding tax, cess, or levy dues imposed on mineral rights or mineral-bearing land before the amended provisions come into force. He alleged this could result in revenue that would otherwise accrue to states being effectively written off.

Notably, the proposed framework also specifies that amounts already deposited or collected would not need to be refunded — leaving states in a position where past dues may be extinguished without compensation.

What the Bill Proposes

Union Mines Minister G. Kishan Reddy recently introduced the MMDR Amendment Bill in the Lok Sabha. The legislation seeks to regulate the imposition of taxes, royalties, cesses, and other levies on mineral rights and mineral-bearing land. Under the proposed framework, the Central government would have broader authority to prescribe conditions and restrictions relating to such levies.

The bill also expands the regulatory ambit beyond mines and minerals to include mineral-bearing land — a significant structural shift from the existing framework, which primarily focuses on mine development.

Gehlot's GST Comparison

Gehlot drew a parallel with the introduction of the Goods and Services Tax (GST), arguing that the promise of a uniform tax structure had previously resulted in financial losses for states. 'This is not an administrative reform,' he said, alleging that the proposed changes could make states increasingly dependent on the Centre.

What Rajasthan's Government Must Do, Says Gehlot

Gehlot has called on the Rajasthan government to take a clear and immediate public position against the bill, stressing the importance of protecting the state's mineral revenue, economic interests, and the approximately 30 lakh jobs linked to the mining sector. As the bill moves through Parliament, the Bhajan Lal Sharma government's response — or continued silence — will be closely watched by both industry and Opposition.