By Our Correspondent
BHUBANESWAR:The MMDR Amendment Bill 2026 (passed by Parliament, awaiting assent) bars states from imposing taxes, cess or levies on mineral rights or mineral-bearing lands for major minerals, except under Centre-prescribed conditions. It also invalidates unrecovered past levies.
This limits additional revenues mineral-rich states like Odisha could raise post the 2024 SC ruling. Royalty, auction premiums, DMF and similar streams continue. Centre states states retain ~90% of mining payments with no overall revenue cut and aims for tax uniformity. Odisha leaders and others argue it curbs fiscal autonomy and potential gains while states still face mining costs. Final impact depends on the rules framed.
The additional gains from state taxes/cess/levies on mineral rights and mineral-bearing lands (unlocked by the 2024 SC ruling) were mainly:
– Retrospective arrears from April 2005: estimates of ₹1.5–2 lakh crore nationally (Odisha alone over ₹1 lakh crore).
– Ongoing annual collections: Jharkhand’s Mineral Bearing Land Cess projected at ~₹11,000 crore; Odisha ~₹12,000 crore under ORISED.
These were extra to royalty, auction premiums and DMF. The 2026 Bill largely curtails unrecovered arrears and future such levies (except under Centre rules).
