The Mining Engineers’ Association of India (MEAI) has welcomed the MMDR Amendment Act, 2026 describing it as an important step towards providing greater clarity, predictability and stability to the mining industry.
In particular, it welcomed the introduction of Section 9D, which provides no tax, cess or other levy, by whatever name called, can be imposed by a State government on mineral rights or mineral-bearing land based on mineral quantity, mineral value, royalty payable or otherwise, except subject to such conditions or restrictions prescribed by the Centre. For existing mining lease holders, this provision provides greater certainty in relation to the fiscal obligations associated with mining operations.
Mining projects are planned on the basis of long-term financial models and the imposition of additional mineral-related levies during the operating life of a mine can materially affect project economics and, in some cases, the viability of operations, MEAI secretary general M. Narsaiah said in a statement.
Stating that the changes also provide clarity on past levies, the association said mining States should review existing or proposed State-level taxes, cess and other levies, assess their fiscal implications and align the applicable State-level mechanisms with the amended statutory framework and the conditions or restrictions prescribed by the Central government.
Besides the mining sector, the amended act will benefit downstream units such as steel and cement plants, besides aluminium smelters, he said.
Published – August 25, 2026 08:35 pm IST
