Industry hails MMDR Bill over greater clarity on levies
Industry leaders on Friday welcomed the passage of the MMDR Amendment Bill, saying it will create a more uniform and investment-friendly regulatory framework for the mineral sector.
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, would improve ease of doing business, provide greater clarity on state-level taxes, cess and other levies on mineral rights and mineral-bearing lands, and help unlock the country’s mineral potential.
Vedanta Ltd Chairman Anil Agarwal welcomed the passage of the bill, saying the changes would improve ease of doing business and help the country unlock its mineral potential.
In a social media post, Agarwal congratulated the Centre on the passage of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 and highlighted its potential to strengthen the mining sector and contribute to India’s economic ambitions.
“The changes to the law will greatly improve ease of doing business. This will help raise production, create massive jobs and promote self-sufficiency,” the Chairman said.
Sumit Jhunjhunwala, Vice President, Sector Head, Corporate Sector Ratings, ICRA Ltd, said the bill will enhance clarity and predictability around uneven state-level taxes, cess and other levies on mineral rights and mineral-bearing land, including retrospective tax claims and potential contingent liabilities for mining companies.
He further said greater visibility on the overall fiscal burden on the mining sector could support investment decisions and improve the viability of projects, particularly those that are capital-intensive and have long gestation periods.
Mining industry expert and former Director General, Federation of Indian Mineral Industries (FIMI) B K Bhatia said the bill, which has since been passed by both the Houses, will facilitate the creation of a more uniform, predictable, stable and investment-friendly fiscal and regulatory framework for the mineral sector.
“It’s a game-changing reform which, once it comes into effect, will pave the way for a sustained and stable fiscal regime for the mining sector across the states,” Bhatia said.
Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to restrict states’ powers to levy taxes on mineral rights and mineral-bearing lands.
The Lok Sabha had passed the bill on Wednesday, while the Rajya Sabha cleared it on Thursday, completing the parliamentary approval process. The bill will become a law after receiving the President’s assent.
