The amendments seek predictable mining rules but curb states’ power to impose levies on mineral rights and mineral-bearing land
The move follows a 2024 Supreme Court ruling affirming states’ power to tax mineral rights, while allowing Parliament to limit that power
India needs more domestic supplies of lithium, cobalt and graphite for batteries, semiconductors, electric vehicles and defence production
Multiple minerals can now be covered under one lease. Captive miners gain greater flexibility, while an electronic exchange could improve price discovery
Mineral-rich states rely heavily on these revenues. In Jharkhand and Odisha, mining receipts form a large share of own non-tax revenue
A stronger mining sector matters, but reforms must also ensure mineral-rich states share in the benefits. Investment certainty cannot come at the cost of fiscal federalism