🗞️ Why in News President Droupadi Murmu gave assent to the Mines and Minerals (Development and Regulation) Amendment Act, 2026 on August 18, 2026, inserting Section 9D, which bars states from imposing fresh taxes, cess or levies on mineral rights or mineral-bearing land except within Centre-prescribed conditions.
What Happened
The Bill passed the Lok Sabha on August 12 and the Rajya Sabha on August 13, 2026, before receiving presidential assent on August 18. It is widely read as a legislative response to the Supreme Court’s July 2024 ruling in Mineral Area Development Authority v. Steel Authority of India (nine-judge bench, 8:1), which had upheld states’ power to tax mineral rights under Entry 50, List II of the Seventh Schedule. Jharkhand CM Hemant Soren and former Odisha CM Naveen Patnaik have objected, and opposition parties have signalled a Supreme Court challenge.
Why This Matters
States earned Rs 1,14,549 crore in mineral revenue in FY2025-26, making this a substantial fiscal-federalism dispute. The episode illustrates Parliament using its legislative power to narrow the practical effect of a Supreme Court interpretation of a taxing entry, without directly overturning the judgment itself, a dynamic with significant implications for centre-state fiscal relations.
UPSC Relevance
This is a high-value GS2 topic on centre-state fiscal federalism, testing the distinction between Entry 50 (List II, states’ power to tax mineral rights) and Entry 54 (List I, Union’s regulation of mines and minerals). A useful Mains angle examines whether Parliament’s power to legislate around a Supreme Court taxing-entry interpretation represents a legitimate exercise of legislative authority or an erosion of cooperative federalism.
📌 Facts Corner, Knowledgepedia
MMDR Amendment Act, 2026:
- Passed: Lok Sabha August 12, Rajya Sabha August 13; assent August 18, 2026
- Key provision: new Section 9D, restricts state taxation of mineral rights/mineral-bearing land
- Responds to: SC ruling, MADA v. SAIL (July 2024), 9-judge bench, 8:1, upheld state taxing power under Entry 50, List II
- States’ mineral revenue, FY2025-26: Rs 1,14,549 crore
- 656 District Mineral Foundations operational nationally
Other Relevant Facts:
- India: world’s 2nd-largest coal producer (over 1 billion tonnes), 4th in iron ore (313 MT)
Sources: PIB, The Tribune, ANI
Source: President Assents to MMDR Amendment Act, 2026, Sparking Federal Balance Debate — Ujiyari.com | Free UPSC & State PCS Current Affairs
