+
Centre Introduces Bill To Bar State Levies On Mining
COAL & MINING

Centre Introduces Bill To Bar State Levies On Mining

The government introduced an amendment bill in the Lok Sabha that would bar states from imposing taxes or other levies on mining and mineral rights and seek to bring mineral-bearing lands within central regulation under the Mines and Minerals (Development and Regulation) Act of 1957. The measure was moved by the minister of coal and mines, G Kishan Reddy, amid protests from opposition members in the House. The bill was presented as an effort to clarify the scope of Union powers over minerals and to streamline the regulatory environment.

The proposed insertion of a new section 9D would provide that no tax, cess or other levy may be imposed by a state government on mineral rights or mineral-bearing land except in accordance with conditions or restrictions prescribed by the central government. The bill therefore seeks to limit state fiscal measures that are linked to mineral quantity, mineral value or royalty and to vest greater legislative control with the Union. The draft legislation contains definitions and parameters to be prescribed for identifying mineral-bearing land.

The proposal follows a Supreme Court ruling over two years ago that had affirmed states' rights to tax mines and mineral-bearing land, with the court distinguishing royalty paid to the central government from a tax. The government said the amendment aims to reduce the financial burden on mining operations and make them commercially attractive to investors. Officials also argued the change would improve predictability for licences, exploration and extraction activities that are central to mineral development.

Under the current framework, the centre's regulatory remit is largely limited to mining activities such as exploration, extraction, licensing and operations, while the underlying land has remained outside explicit Union control. That distinction, the bill contends, has allowed divergent state interpretations on taxes and levies linked to mineral-bearing land and complicated investor decision making. The measure would define mineral-bearing land in accordance with parameters set by the central government and attempt to harmonise the legal treatment across jurisdictions.

The government introduced an amendment bill in the Lok Sabha that would bar states from imposing taxes or other levies on mining and mineral rights and seek to bring mineral-bearing lands within central regulation under the Mines and Minerals (Development and Regulation) Act of 1957. The measure was moved by the minister of coal and mines, G Kishan Reddy, amid protests from opposition members in the House. The bill was presented as an effort to clarify the scope of Union powers over minerals and to streamline the regulatory environment. The proposed insertion of a new section 9D would provide that no tax, cess or other levy may be imposed by a state government on mineral rights or mineral-bearing land except in accordance with conditions or restrictions prescribed by the central government. The bill therefore seeks to limit state fiscal measures that are linked to mineral quantity, mineral value or royalty and to vest greater legislative control with the Union. The draft legislation contains definitions and parameters to be prescribed for identifying mineral-bearing land. The proposal follows a Supreme Court ruling over two years ago that had affirmed states' rights to tax mines and mineral-bearing land, with the court distinguishing royalty paid to the central government from a tax. The government said the amendment aims to reduce the financial burden on mining operations and make them commercially attractive to investors. Officials also argued the change would improve predictability for licences, exploration and extraction activities that are central to mineral development. Under the current framework, the centre's regulatory remit is largely limited to mining activities such as exploration, extraction, licensing and operations, while the underlying land has remained outside explicit Union control. That distinction, the bill contends, has allowed divergent state interpretations on taxes and levies linked to mineral-bearing land and complicated investor decision making. The measure would define mineral-bearing land in accordance with parameters set by the central government and attempt to harmonise the legal treatment across jurisdictions.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

MMRDA Targets Completion of Projects by December 2028

The Mumbai Metropolitan Region Development Authority (MMRDA) is targeting the completion of all its ongoing infrastructure projects by December 2028, a year ahead of its December 2029 deadline, Metropolitan Commissioner Dr Sanjay Mukherjee has said.Speaking at the sixth edition of the Real Estate & Infrastructure Investors' Summit (REIIS) 2026 in Mumbai, Mukherjee said the authority was developing an integrated network of roads, tunnels, sea links and Metro corridors under its broader vision of “Mumbai in 59 Minutes”.The objective is to improve east-west and north-south connectivity an..

Next Story
Building Material

High-Performance Façades Gain Ground in Indian Buildings

High-performance façades are gaining greater importance in Indian architecture as developers and architects increasingly focus on energy efficiency, thermal comfort and building performance, according to Shankar Fenestrations & Glasses.The company said modern façade systems are increasingly being considered as part of a building's overall performance strategy rather than being used primarily as aesthetic elements.High-performance glass, curtain wall systems and structural glazing can contribute to thermal regulation, solar control, daylight management and indoor comfort. Their growing ad..

Next Story
Technology

SPML Infra's 104.4 kWh BESS Battery Pack Clears Global Tests

SPML Infra has announced that its proprietary 104.4 kWh Battery Energy Storage System (BESS) battery pack has completed key international safety, performance and transportation testing and certification requirements, marking a step towards its commercial deployment.Developed under the company's own intellectual property, the battery pack has completed requirements under UL9540A, IEC 62619, IEC 63056, IEC 60730, IEC 61000-6-2, IEC 61000-6-4 and UN38.3 standards.The testing covers areas including thermal runaway safety, battery performance, system functional safety, electromagnetic compatibility..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code