What happened: MMDR Amendment Act, 2026 creates a uniform fiscal framework for mineral taxation
On 19 August 2026, the Government announced the Mines and Minerals (Development and Regulation) Amendment Act, 2026, which amends the Mines and Minerals (Development and Regulation) Act, 1957. The amendment’s central aim is to bring uniform and predictable taxation for mineral rights and mineral-bearing lands, reducing the impact of varying State levies on mining activity.
The key change is a new restriction on State Governments: States cannot impose fresh taxes on mineral rights or mineral-bearing lands unless the Central Government prescribes the conditions or restrictions.
Background and earlier position: why mineral taxation became contested
Mining in India is governed by the MMDR Act, 1957. Mineral governance matters for both economic and security needs because minerals feed steel, cement, power, electronics, transport, and defence.
The Government’s stated problem is that mineral taxation and related levies have become fragmented across States. According to the provided government backgrounder, States impose around 14 taxes, charges, and fees on mining, which can include royalty, auction premium, dead rent, District Mineral Foundation (DMF) payments, Goods and Services Tax (GST), and transit fees. Some States also levy taxes on mineral-bearing lands, with rates “in certain cases” reaching up to 20 percent.