SF Prep Notes

MMDR Amendment Act, 2026 notified to cap State levies on mining

The Centre on 17 August 2026 notified the Mines and Minerals (Development and Regulation) Amendment Act, 2026, which bars States from levying fresh taxes on mineral rights and mineral-bearing lands except within conditions set by the Centre.

Summary

The Mines and Minerals (Development and Regulation) Amendment Act, 2026 was notified by the Central Government on 17 August 2026. The Act amends the MMDR Act, 1957 to create a uniform fiscal framework for mining: State Governments cannot levy fresh taxes on mineral rights and mineral-bearing lands except within conditions prescribed by the Centre. A PIB backgrounder said States currently impose around 14 taxes, charges and fees on mining, and some tax mineral-bearing lands at rates as high as 20 percent. The Act also addresses pending retrospective levies, according to Steel Authority of India Limited (SAIL), which said the reform will improve domestic iron ore availability. India imported minerals worth ₹10,12,529 crore in FY 2025-26, the backgrounder noted.

Key facts

Notified
17 August 2026
Amends
MMDR Act, 1957
Core change
No fresh State taxes on mineral rights and mineral-bearing lands, except within Centre's conditions
Existing levies
Around 14 taxes, charges and fees
Land tax rates
Up to 20% in some States
Mineral imports FY26
₹10,12,529 crore

Practice MCQs 3 questions

Q1

The Mines and Minerals (Development and Regulation) Amendment Act, 2026, notified on 17 August 2026, amends which principal Act?

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Correct answer: C — MMDR Act, 1957

The 2026 Amendment Act amends the Mines and Minerals (Development and Regulation) Act, 1957, under which mining in India is regulated.

Q2 Advanced

According to the PIB backgrounder on the MMDR Amendment Act, 2026, roughly how many taxes, charges and fees do States currently impose on mining?

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Correct answer: A — Around 14

The backgrounder said States impose around 14 taxes, charges and fees, including royalty, auction premium, dead rent, DMF payments, GST and transit fee.

Q3 Advanced

Consider the following statements about the MMDR Amendment Act, 2026: 1. It completely abolishes royalty payable on major minerals. 2. It allows States to levy fresh taxes on mineral-bearing lands without any conditions. Which of the above is/are correct?

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Correct answer: D — Neither 1 nor 2

Neither is correct. The Act does not abolish royalty; it bars States from levying fresh taxes on mineral rights and mineral-bearing lands except within conditions prescribed by the Central Government.

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