Why in news
- Several state governments have raised legal objections to amendments in mineral mining legislation, citing curtailment of state revenue authority.
- Industry stakeholders highlighted that the amendments aim to standardise mineral taxation and unlock private exploration investment.
Key terms
Major Minerals
Minerals categorized under central jurisdiction for regulatory, licensing, and royalty terms, distinct from minor minerals managed by state rules.
Mineral Royalty
A statutory fee paid by a mining leaseholder to the state government based on the quantity or value of extracted minerals.
Key points
- Amendments to the Mines and Minerals (Development and Regulation) Act alter the allocation and taxation framework for major and critical minerals.
- The legislation establishes mineral tax uniformity to streamline capital investment and increase global competitiveness in mineral extraction.
- State governments contend that restrictions on imposing local cesses and levies infringe upon state fiscal autonomy over natural resources.
- Under the Constitution of India, mineral rights regulation is divided between Union supervision for overall development and State revenues from royalties.
- The reform framework seeks to accelerate competitive auctioning and private sector participation in deep-seated and critical mineral exploration.
Prelims facts
- Minor minerals are regulated entirely by state governments under section 15 of the Mines and Minerals (Development and Regulation) Act.
- State legislative powers over minerals are subject to central legislation under Union List Entry 54.
Mains discussion
- Critically evaluate the friction between central regulatory uniformity and state fiscal autonomy in mineral administration.
- Discuss how recent statutory changes in mining laws affect private capital investment in strategic and critical mineral extraction.
Source: The Hindu
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
-
2025 · Q6 · General Studies · 2 marks
Consider the following statements: I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 critical minerals that it has identified. III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals. Which of the statements given above are correct? -
2020 · Q92 · General Studies · 2 marks
Consider the following minerals: 1. Bentonite 2. Chromite 3. Kyanite 4. Sillimanite In India, which of the above is/are officially designated as major minerals? -
2025 · Q52 · General Studies · 2 marks
Consider the following pairs : State Description I. Arunachal Pradesh : The capital is named after a fort, and the State has two National Parks II. Nagaland : The State came into existence on the basis of a Constitutional Amendment Act III. Tripura : Initially a Part 'C' State, it became a centrally administered territory with the reorganization of States in 1956 and later attained the status of a full-fledged State How many of the above pairs are correctly matched? -
2024 · Q72 · General Studies · 2 marks
The Constitution (71st Amendment) Act, 1992 amends the Eighth Schedule to the Constitution to include which of the following languages? 1. Konkani 2. Manipuri 3. Nepali 4. Maithili Select the correction answer using the code given below : -
2023 · Q15 · GS II · 15 marks
Explain the significance of the 101st Constitutional Amendment Act. To what extent does it reflect the accommodative spirit of federalism?