What happened: Mines and Minerals (Development and Regulation) Amendment Act, 2026 (PIB backgrounder FAQ)
The Government of India introduced the Mines and Minerals (Development and Regulation) Amendment Act, 2026 to adjust the mining-sector fiscal and regulatory approach, with a stated focus on stable tax rules and strengthened critical minerals capacity. The PIB backgrounder FAQ presents the Act as a legal framework meant to maintain revenue to mineral-rich States while improving economic viability of mining projects and reducing import dependence for critical minerals.
Background and earlier position (what existed before these amendments)
Before the 2026 amendment, States collected multiple types of taxes, charges, fees and other levies from mining operations. The PIB backgrounder describes the pre-amendment mining revenue landscape as including royalty, auction premium, dead rent, payments to District Mineral Foundations (DMFs), Goods and Services Tax (GST) and transit fees. The backgrounder also notes that some States introduced additional taxes on mineral-bearing lands, which can be as high as 20%.
On benefit-sharing with affected people, the PIB backgrounder links reforms since 2015 to the District Mineral Foundation (DMF) concept and local development spending under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). On mineral allocation and mining lease-related governance, the backgrounder highlights that the 2015 amendment ended discretionary allocation of mining concessions and moved towards competitive e-auctions.