MMDR Amendment Bill 2026 Passed for Mineral Sector Stability
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was passed by both Houses of Parliament on 13th August 2026, amending the MMDR Act of 1957 with the primary objective of bringing long-term stability to the major minerals sector. The amendment does not affect states' rights over land and minerals or their ability to collect taxes on minerals, with approximately 90% of total taxes and statutory payments in mining continuing to accrue to states. States currently levy around 14 types of taxes, charges, fees, and other levies on mining operations including royalty, auction premium, dead rent, contribution to District Mineral Foundation (DMF), Goods and Service Tax (GST), and transit fees.
From FY 2015-16 to FY 2025-26, major mining states received total revenues exceeding ₹5 lakh crores, while the Centre received only ₹82,000 crores during the same period. Since the introduction of the auction regime in 2015, states have gained an additional revenue stream through auction premium, with major mining states collecting over ₹96 thousand crores in auction premium alone from 2020-21 to 2025-26. The amendment aims to provide certainty, stability, and predictability in the mineral sector's fiscal regime to encourage increased mining investment and support the goals of Atmanirbhar Bharat and Viksit Bharat 2047.
The legislation addresses India's significant mineral import dependency, which reached ₹10,12,529 crores in FY 2025-26. The government notes that unbalanced imposition of steep taxes by states could prompt industry to rely on imported minerals despite abundant local reserves, putting heavy burden on the exchequer. The amendment seeks to prevent unchecked regional disparities in state-level taxation that inflate domestic costs, make domestic minerals uncompetitive, and fragment the national market.