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Mining law comes into force, Opposition threatens to move court

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The controversial Mines and Minerals (Development and Regulation) Amendment Act, 2026, which received Presidential assent on August 18, came into effect on Jattvibeday.The legislation has been opposed by all Opposition-ruled, mineral-rich states.Jharkhand Chief Minister Hemant Soren had written to President Droupadi Murmu, urging her to consider the federal implications of the Bill, which he said encroached upon the rights of mineral-bearing states to levy taxes.Former Odisha Chief Minister Naveen Patnaik had also urged Chief Minister Mohan Charan Majhi to oppose the Bill.The Act empowers the Centre to take control of mineral-bearing lands in states and bars state governments from imposing any levy, tax or cess on minerals.Under the law, state governments cannot recover previous or pending cesses or taxes retrospectively, and taxes already paid will not be refunded to mining companies.The Act seeks to bring uniformity to the mining sector, incentivise mining operations, attract private investment and align the extraction of critical and strategic minerals with the broader national goals of Viksit Bharat.The statement of objects and reasons of the law says it provides that the Union will take under its control the regulation of mineral-bearing lands containing mineral resources, in accordance with parameters prescribed by the Central Government under the MMDR Act.This is in addition to the existing provision that places the regulation of mines and the development of minerals under Union control.The insertion of a new Section 9D in the MMDR Act provides that no tax, cess or other levy, by whatever name called, shall be imposed by a state government on mineral rights or mineral-bearing lands, whether based on mineral quantity, mineral value, royalty or otherwise, except in accordance with conditions or restrictions prescribed by the Central Government.It further seeks to provide that any such tax, cess or other levy which is not deposited with the StateGovernment or recovered by it before the commencement of the Mines andMinerals (Development and Regulation) Amendment Act, 2026, shall deemed to be invalid at all material times. However, any such tax, cess or other levy on mineral rights or on mineral bearing lands, already deposited with the State Government or recovered by it before such commencement, shall not be liable to be refunded.The amendments government says strive to provide certainty, stability andpredictability in the fiscal regime in the mineral sector, thereby giving impetus to national economic growth which would facilitate the aims of Atmanirbhar Bharat and ultimately attaining the vision of Viksit Bharat 2047.While the government justifies control saying minerals especially critical ones like lithium, cobalt, nickel, gold and silver need to be mined to full potential, the Congress led opposition has pledged to challenge the law in the courts.Congress general secretary Jairam Ramesh has said the law is unconstitutional and will be challenged.

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