Key Highlights of Mines and Minerals (Development and Regulation) Amendment Act, 2026

About Key Highlights of Mines and Minerals (Development and Regulation) Amendment Act, 2026

• The MMDR Amendment Act, 2026 amends the existing law to establish a uniform and balanced fiscal framework for the mining sector.
  • Under the amended framework, State Governments cannot impose fresh taxes on mineral rights or mineral-bearing lands, except under conditions or restrictions prescribed by the Central Government.
  • Note: Mining activities in India are governed by the Mines and Minerals (Development and Regulation) Act, 1957.
• Major Provisions of the Act
  • Section 9D of the act places restrictions on State levies: State Governments cannot impose any tax, cess or other levy on mineral rights or mineral-bearing lands, regardless of the name or form of the levy.
    • The restriction applies to levies based on the quantity of minerals, the value of minerals, royalty or any other basis.
    • States may impose such levies only when they comply with the conditions or restrictions prescribed by the Central Government.
  • Past unpaid levies are treated as invalid: Any levy that was not paid or collected by a State before the amendment came into effect will be considered invalid.
    • However, amounts that had already been deposited or recovered before the commencement of the amendment will not be refunded.
  • Section 13 of the act gives rule-making authority to the Centre: The amendment empowers the Central Government to frame rules specifying the conditions and restrictions under which State Governments may impose such levies.
• It seek to create a more consistent and predictable fiscal framework for mineral rights and mineral-bearing lands while defining the respective roles of the Central and State Governments.