Once Mines and Minerals (Development and Regulation) Amendment Bill 2026, introduced on Monday in Lok Sabha, becomes legislation, states will lose the right to impose any levy or tax of their own on minerals. That may actually be good for state revenues. Additionally, higher levies deter investment and production. It is a steady increase in production, not a rise in levies, which leads to sustained fiscal gains. In fact, encouraging mining is the most promising pathway to alleviate fiscal stress in states.
Here are two test cases as proof:
