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 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.
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.
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.
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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 · Q89 · General Studies · 2 marks
Consider the following statements: Statement I: In India, State Governments have no power for making rules for grant of concessions in respect of extraction of minor minerals even though such minerals are located in their territories. Statement II: In India, the Central Government has the power to notify minor minerals under the relevant law. Which one of the following is correct in respect of the above statements? -
2021 · Q56 · General Studies · 2 marks
Consider the following statements: 1. The Global Ocean Commission grants licences for seabed exploration and mining in international waters. 2. India has received licences for seabed mineral exploration in international waters. 3. 'Rare earth minerals' are present on seafloor in international waters. Which of the statements given above are correct? -
2019 · Q62 · General Studies · 2 marks
With reference to the management of minor minerals in India, consider the following statements: 1. Sand is a 'minor mineral' according to the prevailing law in the country. 2. State Governments have the power to grant mining leases of minor minerals, but the powers regarding the