The Mines and Minerals (Development and Regulation) (MMDR) Amendment Bill, 2026 has been passed by both Houses of Parliament. The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957 by addressing concerns around multiple, inconsistent and retrospective levies imposed by states.
Notably, the Bill brings mineral-bearing lands under the Union’s control, in addition to the existing provisions covering the regulation of mines and development of minerals. It also introduces Section 9D, which restricts state governments from imposing taxes, cesses or other levies on mineral rights and mineral-bearing lands based on mineral quantity, mineral value, royalty or other parameters, except subject to conditions or restrictions prescribed by the Central Government. Further, such levies that have not been deposited with or recovered by the state before the Amendment Act comes into force would be deemed invalid, while amounts already deposited or recovered would not be refundable. Importantly, the amendment does not take away the rights of states over land and minerals or their existing mineral-related tax revenues. The amendment also does not affect the powers of states to regulate or impose taxes on minor minerals.