Executive Summary
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, was passed by Parliament on August 13, 2026, to bring long-term stability and fiscal predictability to the major minerals sector. The Bill aims to reduce India’s heavy reliance on mineral imports—which totaled over Rs. 10 lakh crore in FY 2025-26—by creating a cohesive national strategy and a competitive domestic market. While providing a certain fiscal regime to attract investment, the amendment preserves the existing revenue structure where approximately 90% of mining taxes accrue to State Governments.
Key Points / Main Content
Legislative Purpose and State Rights
Amends the MMDR Act, 1957, to ensure certainty, stability, and predictability in the mineral sector’s fiscal regime.
Protects the rights of States regarding land, mineral ownership, and the power to regulate or tax minor minerals.
Guarantees that the current revenue distribution—where States receive roughly 90% of total taxes and statutory payments—remains unchanged.
Economic and Investment Goals
Supports the "Atmanirbhar Bharat" initiative and the "Viksit Bharat 2047" vision by encouraging increased mining investment.
Addresses the high cost of mineral imports (Rs. 10,12,529 Crores in FY 2025-26) by making domestic production more attractive.
Prevents domestic minerals from becoming uncompetitive due to "unbalanced imposition of steep taxes" at the State level.
Revenue and Market Uniformity
Maintains various State-level revenue streams, including royalties, auction premiums, dead rent, and contributions to the District Mineral Foundation (DMF).
Highlights the success of the auction regime, noting that States collected over Rs. 96,000 crores in auction premiums between 2020-21 and 2025-26.
Seeks to eliminate regional disparities in taxation that inflate domestic costs and fragment the national market.
Promotes a sustainable and uniform economic growth strategy for finite and geographically concentrated mineral resources.
Impact Analysis
State GovernmentsImpact
States retain their regulatory powers over minor minerals and continue to receive the vast majority (90%) of mining revenue. Leading mining States will continue to see high revenues from auction premiums and statutory levies.
Action Required
States must align their taxation policies with the national strategy to prevent regional disparities and ensure domestic minerals remains competitive.
Mining Industry and InvestorsImpact
The industry benefits from a more stable and predictable fiscal environment, reducing the risk of steep, unbalanced tax hikes. This encourages long-term capital investment in mining operations.
Action Required
Industry stakeholders are expected to increase domestic investment and reduce reliance on imported minerals.
Central GovernmentImpact
The Centre gains a cohesive framework to manage finite resources and reduce the national exchequer's burden caused by massive mineral imports.
Action Required
The Ministry of Mines must oversee the implementation of the 2026 Amendment to ensure sustainable and equitable economic growth across the sector.
Key Entities Referenced
Mines and Minerals (Development and Regulation) Amendment Bill, 2026: Legislation passed by Parliament to amend the existing mining framework and bring long-term fiscal stability to the major minerals sector.
Mines and Minerals (Development and Regulation) Act, 1957: The principal act governing the mining sector in India, which is being amended to provide predictability and increase investment.
Ministry of Mines: The primary central ministry responsible for the administration of the mineral sector and the introduction of the amendment bill.
Atmanirbhar Bharat: A national initiative for self-reliance that the amendment aims to facilitate by reducing reliance on imported minerals.
District Mineral Foundation (DMF): A statutory entity to which mining companies contribute, representing a significant source of revenue for major mining states.
Ministry of Mines
MMDR Amendment to bring long term Stability in
Major Minerals Sector
प्रव तथ: 14 AUG 2026 8:14PM by PIB Delhi
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was passed by both the
Houses of the Parliament on 13th August, 2026. The Bill amends the Mines and Minerals (Development
and Regulation) Act, 1957 (MMDR Act) with the aim to bring long term stability in the major minerals
sector.
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. At present, out of the total taxes and statutory payments in mining,
around 90% accrues to the States and this arrangement will continue even after the amendment. Further,
this amendment will not impact the power of the States to regulate and impose tax on minor minerals.
The above amendments strive to provide certainty, stability and predictability in the fiscal regime in the
mineral sector, thereby giving impetus to increased investment in mining. This is expected to facilitate the
aims of Atmanirbhar Bharat and ultimately aid in attaining the vision of Viksit Bharat 2047.
Minerals are critical to infrastructure, manufacturing, energy security and overall economic development.
In FY 2025-26, India imported minerals worth Rs. 10,12,529 Crores. Unbalanced imposition of steep
taxes will prompt the industry to rely on imported minerals, thereby putting heavy burden on the
exchequer.
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% of total mining revenue accrues to the
States. From FY 2015-16 till FY 2025-26, a total of over Rs. 5 lakh crores have accrued to major mining
States whereas during the same period, the revenue to Centre was only Rs. 82,000 crores. This scenario
will continue to be same even after the Mines and Minerals (Development and Regulation) Amendment
Bill, 2026 (MMDR Amendment Bill, 2026).
After introduction of auction regime in 2015, States have got another major source of revenue as auction
premium – the amount quoted by the successful bidder in the auction. During 2020-21 to 2025-26, major
mining states have collected auction premium of more than Rs. 96 thousand crores, which is in addition to
other revenue sources like, royalty, DMF, GST, etc. Thus, States which have taken lead in auction and
operationalisation of auctioned blocks have seen exponential rise in their revenues.
As mineral resources are finite and geographically concentrated only in few States, their management
requires a cohesive national strategy to ensure sustainable, equitable, and uniform economic growth.
Unchecked regional disparities in State-level taxation disrupt this framework by inflating domestic costs.
Unconstrained and uneven State levies weaken public interest by making domestic minerals
uncompetitive, incentivizing unnecessary foreign imports despite abundant local reserves, and
fragmenting the national market.****
Shuhaib T/Prajith Kumar
(रलीज़ आईडी: 2299596) आगंतुक पटल : 2006
इस वज्ञ को इन भाषाओ ंम पढ़: Urdu , ही , Telugu