New Delhi, August 15, 2026: The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 has been passed by both Houses of Parliament, marking a significant policy step aimed at creating greater stability and predictability in India’s major minerals sector.
Passed on August 13, the legislation amends the Mines and Minerals (Development and Regulation) Act, 1957. The government has said the changes are intended to provide a more certain fiscal environment for mining companies and encourage fresh investment in the sector.
Importantly, the amendment does not take away the rights of states over land and minerals or their existing powers to collect taxes and statutory payments from mining. According to the government, around 90 per cent of total taxes and statutory payments from mining currently accrue to states, and this arrangement will continue under the amended framework.
The legislation also does not affect states’ powers relating to the regulation and taxation of minor minerals.
The government has linked the reform to India’s growing dependence on mineral imports. During FY 2025-26, India imported minerals worth ₹10.12 lakh crore, highlighting the need to strengthen domestic production and make Indian mineral resources more competitive.
At present, mining operations attract several state-level charges, including royalty, auction premium, dead rent, District Mineral Foundation (DMF) contributions, GST and transit fees. Between FY2015-16 and FY2025-26, major mining states collectively received more than ₹5 lakh crore, compared with around ₹82,000 crore accruing to the Centre.
The auction regime introduced in 2015 has also emerged as an important source of state revenue. Major mining states collected more than ₹96,000 crore in auction premiums between FY2020-21 and FY2025-26, in addition to royalty, DMF contributions and other revenues.
The government argues that greater uniformity and predictability in the fiscal regime will help prevent domestic minerals from becoming excessively expensive because of multiple and uneven levies. Such cost pressures, it says, could make imported minerals more attractive even when adequate resources are available within the country.
With minerals playing a crucial role in infrastructure, manufacturing, energy security and the clean-energy transition, the amendment is being positioned as part of a broader strategy to strengthen domestic mineral production, support Atmanirbhar Bharat and contribute to the long-term goal of Viksit Bharat 2047.