Industry Odisha Bureau, Aug 14: The Parliament passed the Mines and Minerals Development and Regulation Amendment Bill (MMDR), 2026 on Thursday. Union Minister G. Kishan Reddy said the legislation does not impinge upon States’ constitutional mining rights. The amendment targets only major minerals while preserving State authority over minor mineral resources.
The government characterised MMDR Bill as primarily aimed at ensuring equitable growth across India’s mining ecosystem. The amendment covers only specified major minerals including coal, lignite, iron ore, graphite, cobalt, lithium and nickel. The states retain absolute control over minor minerals, which include exploration, production, land acquisition and taxation provisions.
The Rajya Sabha passed the MMDR Amendment bill on August 12, 2026, one day prior to full Parliamentary approval. This amendment applies to eleven States: Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan and Uttar Pradesh. The government said the measure does not alter revenue dynamics for minor mineral extraction.
Minister Reddy emphasised the government’s commitment to standardised taxation rates across States’ major mineral operations. Identical tax rates prevent effective mineral prices from spiking across different geographic regions excessively. The government neither seeks State resource control nor violates their constitutional mining authority, Reddy stated.
The Mines and Minerals Development and Regulation shows significant increases in revenue flowing to States over the past decade. States’ share in overall mineral revenues increased from 65% to 88% between FY2014-15 and FY2024-25. Another revenue metric increased from 55% to 96% during the same ten-year period.
The legislation also provides structural foundation for India’s proposed coal and minerals exchange mechanism. The government wants reforms encouraging greater production of major minerals across the country’s core regions. Officials expect India to establish its first functional coal exchange within eight to nine months.
The amendment has nevertheless drawn opposition from several States, particularly Kerala, citing federal structure concerns. Critics argue the legislation could encroach upon State constitutional powers over natural resource management arrangements. The government disputes these interpretations and maintains States’ control remains intact and protected.
For India’s mining sector, the reform could enhance market transparency and pricing standardisation. Structured mineral trading could improve domestic mining sector efficiency and critical mineral availability. The legislation represents the government’s effort to balance Union reform objectives with State resource autonomy.
