India mining law amendment sparks constitutional challenge from states

The Indian government has introduced the Mines and Minerals (Development and Regulation) Amendment Act, 2026, aimed at establishing a uniform, Centre-directed tax framework for the mining sector. The reform seeks to address high fiscal costs caused by varying state-level levies, which can reach up to 20% on mineral-bearing lands. By streamlining the taxation of minerals such as iron ore, coal, and bauxite, the central government intends to reduce India's heavy reliance on mineral imports and lower input costs for downstream industries like steel and cement.

However, the amendment has sparked a constitutional dispute regarding federalism. Several state governments, including Kerala, are preparing to challenge the legislation in the Supreme Court of India. Critics, including Kerala Chief Minister Pinarayi Vijayan, argue that the changes infringe upon the constitutional authority of states to manage their own mineral resources and collect royalties. The legal battle is expected to focus on whether Parliament is overstepping its bounds by legislating on matters traditionally under state jurisdiction.