Mining Engineers Applaud MMDR Amendment for Fiscal Clarity

The Mining Engineers' Association of India (MEAI) has welcomed the Mines and Minerals (Development and Regulation) Amendment Act, 2026, describing it as an important step towards providing greater clarity, predictability, and stability to the mining industry. The association, which represents professionals in the mining sector, said the changes address long-standing concerns about unpredictable fiscal demands on mining operations.

In particular, the association highlighted the introduction of Section 9D in the Act, which stipulates that 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. However, such levies may be allowed subject to conditions or restrictions prescribed by the Central government. 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. The association's endorsement reflects the industry's view that stable and predictable tax regimes are essential for attracting investment and ensuring sustainable mining activities.

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. This, it said, would help avoid disputes and create a more harmonious relationship between the Centre and States.

Besides the mining sector, the amended Act will benefit downstream units such as steel and cement plants, besides aluminium smelters, he said. These industries depend on consistent and affordable mineral supplies, and any uncertainty in mining operations can have ripple effects on manufacturing and infrastructure sectors. The MEAI's statement thus underscores the broader economic significance of the amendment.

The MMDR Act, originally enacted in 1957, is the primary legislation governing the development and regulation of mines and minerals in India. The 2026 amendment is seen as part of ongoing reforms to modernise the sector and make it more competitive. While the industry body has welcomed the move, the actual impact will depend on how the Central government frames the conditions and restrictions, and how States implement the new framework.

As the mining sector is a key contributor to India's economy, the amendment's success will be measured by its ability to balance the interests of industry, States, and the environment. The association's positive reception indicates a step in the right direction, but continued dialogue and clear implementation will be necessary to achieve the intended outcomes.