Mines and Minerals (Development and Regulation) Amendment Bill 2026

Why in News?

Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill 2026 on 13 August 2026. The Lok Sabha passed the Bill on 12 August, followed by the Rajya Sabha on 13 August. The Bill seeks to amend the Mines and Minerals (Development and Regulation) Act, 1957, India’s principal law governing mineral development and regulation.

The legislation will become law after receiving Presidential assent under Article 111 of the Constitution.

About Mines and Minerals (Development and Regulation) Amendment Bill 2026

What are the Major Provisions?

The Bill proposes greater central oversight over mineral-bearing lands and mineral taxation. It restricts States from imposing independent taxes, cesses, or levies on mineral rights unless authorised under the central framework.

The measure has important federalism implications because mineral taxation involves the constitutional division of powers between the Union and States.

The Bill also addresses past mineral-related taxes imposed by State governments. It seeks to invalidate certain past, unrecovered, or undeposited levies while protecting amounts that have already been collected.

Changes in Mineral Leasing

The amendment provides greater flexibility to existing mining leaseholders. Leaseholders can add multiple minerals to existing leases without making additional payments under specified conditions.

The minerals covered include lithium, cobalt, graphite, gold, and silver. This provision can support exploration and production of minerals that are important for India’s strategic and clean-energy requirements.

The Bill also removes the earlier cap on the sale of minerals produced from captive mines. Captive mines primarily supply minerals to the leaseholder’s own industrial units.

Earlier reforms had already proposed removing the 50% sale limit applicable to captive mines.

Mines and Minerals (Development and Regulation) Amendment Bill 2026: Related Information

The legislation has emerged against the background of the Supreme Court’s Mineral Area Development Authority v. SAIL judgment. In 2024, the Court held that States possess constitutional powers to tax mineral rights and mineral-bearing lands, subject to constitutional limitations.

The new legislation has therefore generated debate over fiscal federalism. Critics argue that restricting State-level mineral taxation could affect State revenues. Supporters view greater uniformity as a way to improve investment and mineral production.

The MMDR Act, 1957 remains the central legislative framework for mineral development, mining leases, and regulation of major minerals in India.

Mines and Minerals Amendment Bill 2026: Exam-Oriented Facts

• Bill: Mines and Minerals (Development and Regulation) Amendment Bill, 2026.
• Lok Sabha: Passed on 12 August 2026.
• Rajya Sabha: Passed on 13 August 2026.
• Act Amended: MMDR Act, 1957.
• Introduced By: G. Kishan Reddy, Union Minister of Coal and Mines.
• Presidential Assent: Governed by Article 111.
• Key Issue: Mineral taxation and Centre-State relations.
• Minerals Mentioned: Lithium, cobalt, graphite, gold and silver.
• Captive Mines: Mines primarily supplying minerals for the owner’s industrial use.
• Constitutional Context: Seventh Schedule and distribution of legislative powers.
• Important Case: Mineral Area Development Authority v. SAIL (2024).
• Major Significance: Greater central control over mineral taxation and greater flexibility in mineral leasing.