New Delhi, India – Union Coal and Mines Minister G. Kishan Reddy on Thursday assured that the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, passed by Parliament, does not impinge upon the rights of States over their resources. The Minister emphasized that the legislation is primarily aimed at ensuring growth and equitability in the overall mining ecosystem. He clarified that the amendment applies only to certain major minerals and does not extend to minor minerals, over which States retain absolute control.
“The government’s primary objective is to ensure identical [taxation] rates across the board to ensure [effective prices] do not spike. We are neither seeking to impinge upon any State’s rights nor acquire any control [over States’ resources],” Reddy stated. He reiterated that the ratified legislation does not change the revenue dynamics for minor minerals, including exploration, production, land acquisition, block auctions, and the levying of State taxes and cess. The list of major minerals includes coal, lignite, iron ore, graphite, cobalt, lithium, and nickel, among others.
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The provision of the law encompasses 11 States: Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh, and Goa. Reddy highlighted that the Union government has ensured a flow of revenue to States, with their share in overall mineral revenues accelerating from 65% to 88% between FY 2014-15 and 2024-25. He also mentioned that the proposed legislation would establish a structure for a coal and minerals exchange, with India expected to have its first coal exchange in the next eight to nine months. The Bill, which had drawn opposition from States like Kerala for allegedly overriding the federal structure, is now law.
