MMDR Amendment Act set to encourage fresh capital investment, bring tax uniformity
The MMDR Amendment Act, 2026, aims to standardize mining taxes and levies to reduce operational uncertainty for the industry. Industry leaders believe these reforms will encourage capital investment and improve the global competitiveness of domestic mineral production.
Why it matters
Regulatory changes in the mining sector are critical for economic growth and attracting foreign and domestic investment in natural resources.
The MMDR Amendment Act, 2026 is expected to address long-standing operational challenges in the mining sector by bringing greater uniformity and predictability to the levy regime, FICCI Mining Committee Chair and NMDC CMD Amitava Mukherjee said on Thursday.
The amendment to the Mines and Minerals (Development and Regulation) Act, 1957, is aimed at curbing non-uniform state taxes and unexpected cesses that have increased the cost of mineral extraction and created uncertainty for the industry. A more certain taxation and levy framework could encourage fresh capital investment while accelerating the exploration and development of mineral resources, he said in a statement.
Mukherjee said empowering the Centre to streamline levies on mineral-bearing lands under the newly introduced Section 9D would help create a transparent and predictable framework for mining companies operating across different States.
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