Mines and Minerals Amendment Bill 2026: Govt Says Changes Will Boost Mining Investment

The recently passed Mines and Minerals Amendment Bill, 2026, brings long-term stability to the major minerals sector and attracts investment in the sector, the government said on Saturday. The amendment will check unbalanced imposition of steep taxes by states and reliance on imported minerals, an official statement said. “Unconstrained and uneven state levies weaken public interest by making domestic minerals uncompetitive, incentivising unnecessary foreign imports despite abundant local reserves,” the statement said. Further, such practices fragment the national market, the government said in a clarification note, on the bill that amended the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).

“The amendment Bill will not take away any of the rights of the States on land and minerals or any tax on minerals collected by the States. Currently, out of the total taxes and statutory payments in mining, around 90 per cent accrues to the states and this arrangement will continue even after the amendment,” it clarified. The amendment also does not impact the power of the states to regulate and impose tax on minor minerals. It aims to provide certainty, stability and predictability in the fiscal regime in the mineral sector, thereby giving impetus to increased investment in mining, facilitating the aims of Atmanirbhar Bharat to achieve the vision of Viksit Bharat 2047.

Minerals are critical to infrastructure, manufacturing, energy security and overall economic development. India imported minerals worth Rs 10,12,529 crores in FY26. The States are currently levying around 14 types of taxes, charges, fees and other levies on mining operations such as royalty, auction premium, dead rent, contribution to District Mineral Foundation (DMF), Goods and Service Tax (GST), transit fee, etc. Around 90 per cent of total mining revenue accrues to the states. A total of over Rs. 5 lakh crores have accrued to major mining states from FY16 till FY26, while the revenue to Centre was only Rs 82,000 crores. This scenario will continue to be the same even after the amendment, the statement said.

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