India passes MMDR Amendment Bill to stabilize mineral sector

The Indian Parliament has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, aiming to stabilize the nation's mineral sector and reduce reliance on imports. The legislation seeks to create a more predictable fiscal regime by restricting states from imposing additional taxes, cesses, or levies on mineral rights and mineral-bearing lands. The government stated this move is intended to improve investment attractiveness and support strategic goals like 'Aatmanirbhar Bharat' and 'Viksit Bharat 2047'.

The Ministry of Mines clarified that the amendment does not strip states of their rights over land or minerals, noting that approximately 90 per cent of mining-related taxes and statutory payments currently accrue to states and will continue to do so. It also does not affect state powers regarding minor minerals.

However, the bill has faced significant opposition. Naveen Patnaik, leader of the opposition in the Odisha Assembly, warned that the law poses a 'serious threat to Odisha's fiscal autonomy' and could lead to massive revenue losses for mineral-rich states. Industry leaders, including Vedanta Ltd Chairman Anil Agarwal, have welcomed the bill, suggesting it will improve the ease of doing business and unlock India's mineral potential.