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Parliament Passes Mines and Minerals Amendment Act 2026 Overriding SC Ruling, Extinguishes Rs 2 Lakh Cr Dues

PolityEconomyCORE
Target:UPSC GS-IIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
25 Sept 2026
~2 min
Source: Indian Express
Key Data:Rs 2 lakh crore arrears extinguishedRs 12,000 crore Odisha annual loss estimateRs 11,000 crore Jharkhand MBL cess annual projection84.9% Jharkhand mining revenue share41% states' mineral receipts as % of own non-tax revenueJuly 25, 2024 SC ruling date
Bodies:ParliamentSupreme CourtMinistry of Mines
Practice MCQs from today's news ▸
What This Article Covers

1.Parliament passed the Mines and Minerals (Amendment) Act, 2026 in August, limiting state powers to levy taxes on mineral-bearing land.

2.The law extinguishes pending state-level mining tax dues estimated at Rs 2 lakh crore and overrules a 2024 SC judgment that had upheld states' taxing rights.

3.Odisha may lose Rs 12,000 crore annually and Jharkhand Rs 11,000 crore from Mineral Bearing Land cess; states call it an assault on federalism.

The Big Picture
Prelims · HighMains · High

The Mines and Minerals (Development and Regulation) Amendment Act, 2026 restricts states from imposing specified levies on mineral rights and extinguishes ~Rs 2 lakh crore in unpaid dues. Mineral-rich states like Odisha and Jharkhand oppose it as a blow to federal fiscal autonomy, potentially losing thousands of crores annually. This reverses the financial impact of a landmark 2024 Supreme Court ruling that had empowered states to tax mineral-bearing lands.

Exam Lens

Quick Exam Facts From News

Law PassedAugust 2026
SC Ruling OverruledJuly 25, 2024
Est. Arrears Extinguished~Rs 2 lakh crore
Odisha Annual Loss EstimateRs 12,000 crore
Jharkhand Mining Revenue Share84.9% of own non-tax revenue
States' Mineral Receipts (2024-25)41% of own non-tax revenue (Rs 1.36 lakh cr)

1-Minute Revision

  • ›Law Passed: August 2026
  • ›SC Ruling Overruled: July 25, 2024
  • ›Target this Data: Rs 2 lakh crore — estimated arrears extinguished by the new law.
  • ›Target this Nodal Body: Ministry of Mines (central ministry responsible for the Act).
  • ›Target this Legal Point: Mines and Minerals (Development and Regulation) Amendment Act, 2026 overrides the July 25, 2024 Supreme Court ruling on states' taxing powers.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry is primarily responsible for the Mines and Minerals (Development and Regulation) Act?

Q2Statement-basedHard

Consider the following statements regarding the Mines and Minerals (Amendment) Act, 2026:

1. The Act overrides a 2024 Supreme Court ruling that upheld states' power to tax mineral rights.

2. The Act increases the existing state-level levies on mining companies.

3. The Act extinguishes unpaid dues from specified state levies imposed before its commencement.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what was the projected annual revenue for Jharkhand from the Mineral Bearing Land Cess?

Q4Application/ImpactMedium

What is the primary objective of the new mining law according to the central government?

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