India Introduces Bill to Limit State Taxes on Mining

The Indian government introduced a significant amendment to the Mines and Minerals Development and Regulation Act in the Lok Sabha on Monday, August 10, 2026, seeking to limit states' power to impose taxes on mining and mineral-bearing lands. The Mines and Minerals Development and Regulation Amendment Bill, 2026, was tabled by Union Minister G Kishan Reddy and is part of a broader legislative agenda that includes several other key bills.

The proposed legislation aims to bar states from levying taxes, cesses, or other charges on mineral rights or mineral-bearing lands, except under conditions prescribed by the central government. The bill introduces a new section 9D in the MMDR Act, stating that no such levy shall be imposed by a state government unless it aligns with central government rules. This move is intended to reduce the financial burden on mining operations and improve their commercial viability, particularly for small and medium-scale operators who may be disproportionately affected by multiple and inconsistent taxes.

The bill follows a landmark Supreme Court ruling delivered on July 25, 2024, in the Mineral Area Development Authority vs. Steel Authority of India Ltd...