Parliament on 13 August 2026 passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to restrict the powers of States to levy taxes on mineral rights and mineral-rich lands. The legislation was carried amid criticism from the Opposition that it runs contrary to the fiscal federalism guaranteed by the Constitution. The move prompted sustained debate over the allocation of fiscal authority between the Union and States and over the governance of extractive industries across various jurisdictions.

The Lok Sabha had approved the Bill on 12 August and the Rajya Sabha cleared it on 13 August after brief deliberations. The government declined requests in both Houses to refer the measure to a Parliamentary Standing Committee for detailed scrutiny, a decision that drew sharp protest from Opposition benches. Congress member Praveen Chakravarty moved a notice to disallow the Bill in the Rajya Sabha, and that notice was rejected by Chairman C. P. Radhakrishnan during proceedings presided over by the Vice-President.

Mines Minister G. Kishan Reddy rejected the contention that the Bill interferes with fiscal federalism and framed the amendments as designed to ensure uniform mineral rates across the country. He characterised the changes as part of an effort to standardise the levy framework that governs mineral concessions and related charges, asserting that a coherent national approach would reduce legal fragmentation. The minister defended the government's decision to advance the Bill without committee referral on the basis of policy urgency.

The parliamentary exchanges underscored the political sensitivity of central regulation of natural resources and the broader contest over State revenue streams. Opposition members warned of diminished fiscal space for States and stressed the need to protect local oversight of mining activity. Supporters argued that national uniformity would simplify compliance and administration, while legislative leaders concluded debate and moved the Bill forward.