Why are States divided over the mining amendment?
The Indian government's 2026 mining amendment has sparked a constitutional debate regarding the fiscal autonomy of states. By limiting state-level taxation on mineral-bearing lands, the Centre faces opposition from states that rely on these revenues.
Why it matters
Highlights the ongoing tension between federal authority and state rights in resource-rich regions.
In a federal country like India, differences between the Centre and the States over certain issues are not unusual. One such instance recently arose over the Mines and Minerals (Development and Regulation) Amendment Act , 2026, passed by Parliament.
Under the amended Act, the Centre’s regulatory powers over mining have been expanded to cover not only mines and mineral development but also mineral-bearing lands. It bars States from imposing fresh taxes on mineral rights and mineral-bearing lands, except under conditions prescribed by the Union government. It also cancels mineral taxes imposed by States but not fully collected before the Act came into force.
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