The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 is a legislative provision that amends the principal Mines and Minerals (Development and Regulation) Act, 1957. The Bill was introduced in the Lok Sabha on August 10, 2026, and passed by Parliament on August 13, 2026, with the stated aim of providing certainty and stability in the mineral sector's fiscal regime to boost national economic growth and the vision of Viksit Bharat 2047.
The key mechanism of the amendment is the insertion of a new Section 9D into the MMDR Act, 1957, which restricts the taxing power of State Governments. This new section prohibits states from imposing any tax, cess, or other levy on mineral rights or mineral bearing lands, except in accordance with conditions or restrictions prescribed by the Central Government. This provision effectively overrides a 2024 Supreme Court ruling that had allowed states to tax mineral rights. Furthermore, the Bill deems any such unrecovered state levy from before the commencement of the Amendment Act to be invalid, though amounts already deposited will not be refunded.
The amendment also connects to operational flexibility by removing the existing 50% ceiling on the sale of minerals produced from captive mines after meeting end-use requirements. This change liberalizes the sale of output from captive mines. Additionally, it expands the mandate of the National Mineral Exploration Trust (NMET), which will be renamed the National Mineral Exploration and Development Trust, and allows mining lease holders to add other minerals, including critical and strategic minerals like lithium and gold, to existing leases without paying an additional amount. The Bill also proposes the establishment of an authority to regulate mineral exchanges.