PolityEconomy
News 3 of 22

Rajya Sabha Passes Mining Amendment Act 2026: States Barred from Taxing Mineral Rights; Odisha, Jharkhand Oppose

PolityEconomyCORE
Target:MPSCUPSC GS-IISSC GATeachingPrelims HighMains HighStatic GK Link
15 Aug 2026
~2 min
Source: The Hindu
Key Data:August 12, 202641.4%₹160 per metric tonne₹100 per metric tonne11 states
Bodies:Rajya SabhaComptroller and Auditor General (CAG)Federation of Indian Mineral Industries (FIMI)
Practice MCQs from today's news ▸
What This Article Covers

1.Rajya Sabha passes amendment to Mines and Minerals (Development and Regulation) Act, barring states from taxing mineral rights, mineral-bearing lands, and operations.

2.Mineral-rich states (Odisha, Jharkhand, Kerala) oppose the Act as an infringement on federal fiscal autonomy; CAG report states 41.4% of states' non-tax revenue comes from minerals.

3.Union Govt argues the amendment ensures price equitability and investor confidence; it applies retrospectively and covers only major minerals (coal, iron ore, lithium, etc.) across 11 states.

The Big Picture
Prelims · HighMains · High

The Rajya Sabha has passed a key amendment to the Mines and Minerals (Development and Regulation) Act, 1957, which prohibits states from levying any tax or cess on mineral-bearing lands and operations. This move, aimed at ensuring uniform pricing, has sparked a major federal clash with mineral-rich states like Odisha and Jharkhand, who see it as an infringement on their fiscal autonomy and a threat to their revenue-dependent welfare schemes.

Exam Lens

Quick Exam Facts From News

Date of Passage (Rajya Sabha)August 12, 2026
Key AmendmentStates cannot levy tax/cess on mineral rights, mineral-bearing lands, and operations
CAG Data Point41.4% of states' non-tax revenue from mineral & petroleum receipts
Tamil Nadu MBL Tax Rate₹160 per metric tonne
Jharkhand MBL Tax Rate (initial)₹100 per metric tonne
Key Opposing StatesOdisha, Jharkhand, Kerala
Major Minerals Included (examples)Coal, lignite, iron ore, graphite, cobalt, lithium, nickel
Number of States Covered11 (including Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, MP, Odisha, Rajasthan, UP, Goa)

1-Minute Revision

  • ›Date of Passage (Rajya Sabha): August 12, 2026
  • ›Key Amendment: States cannot levy tax/cess on mineral rights, mineral-bearing lands, and operations
  • ›Target this Data: Rajya Sabha passed the Mining Amendment Act on August 12, 2026.
  • ›Target this Data: 41.4% of states' non-tax revenue comes from mineral and petroleum receipts (CAG report).
  • ›Target this Legal Point: The amendment prohibits states from levying tax or cess on mineral rights, mineral-bearing lands, and operations under the MMDR Act, 1957.
  • ›Target this Data: List of major minerals includes coal, lignite, iron ore, graphite, cobalt, lithium, and nickel.

Mastered this topic? Test your knowledge with a full MCQ quiz.

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

Q1Static LinkageMedium

Under which constitutional entry do states derive the power to tax mineral rights, which has been curtailed by the recent amendment to the MMDR Act?

Q2Statement-basedHard

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

1. The Act prohibits state governments from levying any tax or cess on mineral rights, mineral-bearing lands, and related operations.

2. The amendment applies to both major and minor minerals, bringing all mining under central regulation.

3. The Act takes retrospective effect, invalidating any such levy that was liable but not collected before its enforcement.

Which of the statements given above is/are correct?

Q3Data-centricEasy

According to the CAG report cited in the article, what percentage of a state's non-tax revenue comes from mineral and petroleum-related receipts combined?

Q4Application/ImpactMedium

What is the primary objective behind the Union Government's decision to amend the MMDR Act to bar states from levying taxes on mineral-bearing lands?

All 15 MCQs ▸
Read original article from The Hindu
You finished this topic
Practice 3 MCQs from this newsNext Article
Explore Related Topics
PolityView Topic MCQs →EconomyView Topic MCQs →
PreviousSC Landmark Judgments: From Basic Structure to Privacy - 80 Years of Rights & FreedomsNext India Targets 100 GW Nuclear Capacity by 2047, 5 New Reactors This Decade for AI & Chip Demand
Related Current Affairs
Polity Current Affairs

Lok Sabha Passes MMDR Amendment Bill 2026: States Barred from Levying Additional Tax on Mineral Rights

The Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 without debate, centralizing control over mineral taxation. States are now barred from levying additional taxes, cess, or levies on mineral rights, aiming to create a uniform fiscal regime and boost investor confidence under the Atmanirbhar Bharat and Viksit Bharat 2047 vision.

Polity Current Affairs

Rajya Sabha Passes Appropriation Bill 2026 for ₹54,067 Cr Excess Expenditure (FY2022-23)

Rajya Sabha has cleared the Appropriation Bill, 2026, authorising ₹54,067.44 crore in excess expenditure from the Consolidated Fund of India for FY 2022-23. Two demands covered: ₹53,871 crore for debt repayment and ₹196.44 crore per a Railway Ministry court order. This is a key procedural event in parliamentary financial control every student of Indian polity must understand.

Polity Current Affairs

Parliament Passes Mines and Minerals (Development and Regulation) Amendment Bill 2026 Restricting States' Tax on Mineral Rights

Parliament has passed a crucial amendment to the Mines and Minerals Act, 1957, which restricts states' power to levy taxes on mineral rights and mineral-bearing lands. This is a major federalism-linked economic reform that will impact state revenues and the mining sector, making it a high-priority topic for UPSC, State PSCs, and Banking exams.

Polity Current Affairs

Mines and Minerals Amendment Bill 2026: Centre Restricts States' Mineral Levies After SC 2024 Verdict

The Mines and Minerals (Development and Regulation) Amendment Bill 2026, passed by Parliament, restricts states from imposing additional levies on mineral rights and mineral-bearing land, effectively overriding the Supreme Court's 2024 judgment that upheld states' power to tax mineral rights. This reignites Centre-state tensions, especially with mineral-rich states like Jharkhand, Tamil Nadu, and Karnataka, potentially impacting their fiscal autonomy and federal balance.

Polity Current Affairs

Parliament Passes MMDR Amendment 2026 Restricting States' Levy Powers on Mineral Rights

Parliament has passed the Mines and Minerals (Amendment) Bill, 2026, limiting states' power to impose taxes on mineral rights, overriding a Supreme Court judgment that upheld such state powers. This move aims to boost investment certainty but has sparked concerns over fiscal federalism and state revenues, especially for mineral-rich states like Odisha, Jharkhand, and Chhattisgarh.

Polity Current Affairs

Rajya Sabha Passes NCDC (Amendment) Bill 2026 Expanding Direct Loans to Cooperatives

Rajya Sabha passed the NCDC (Amendment) Bill 2026, empowering the National Cooperative Development Corporation to give loans and grants directly to cooperative societies. The bill also expands the definition of foodstuffs to include processed food, marking a structural shift in cooperative sector financing. For exam aspirants, this is significant for both Polity (bill passage process, federalism debate) and Economy (cooperative credit, role of NCDC).

Economy Current Affairs

MSME Development Amendment Bill 2026 Passed: 50% Interim Payment, Faster Dispute Resolution

Lok Sabha passed the MSME Development Amendment Bill, 2026 without debate, tackling delayed payments with faster dispute resolution and empowering courts to order 50% interim payment to suppliers. MSMEs contribute 31% to GDP, 36% to manufacturing, and 41% to exports. The Bill is now cleared by Parliament.

Polity Current Affairs

Lok Sabha Passes Tribunals Reforms Bill 2026; India's Russian Oil Imports Hit All-Time High of 48%

Today's top news covers the Lok Sabha's passage of the Tribunals Reforms Bill 2026 without debate, India's all-time high Russian oil imports at 48% in June 2026, multiple Supreme Court orders on Cauvery, Manipur, and Abhishek Banerjee, and a police lathi-charge on student protesters in Jharkhand. Key for Prelims: data points, bill names, SC orders.

Start Today's Quiz(15 Qs)