Ranchi (Jharkhand) [India], August 14 (ANI): Jharkhand Chief Minister Hemant Soren has urged Prime Minister Narendra Modi to reconsider amendments to the country’s mining law, warning that restrictions on state-level mineral levies could significantly affect the state’s revenues and its ability to fund welfare and development programmes.
In a letter to the Prime Minister dated August 13, Soren said mining revenue constituted around 84.9 per cent of Jharkhand’s own non-tax revenue in 2024-25, citing the state’s Economic Survey for 2025-26.
The letter said the Mineral Bearing Land Cess was expected to generate around Rs 11,000 crore annually.
“These figures demonstrate that mineral-related revenues are not marginal receipts but a critical component of the State’s fiscal capacity,” Soren said.
“Any substantial restriction on this revenue would directly affect the State’s ability to sustain developmental, welfare and social-security interventions,” he added.
In a post on X accompanying the letter, Soren said the provisions could have “serious implications” for the constitutional rights, revenue, development and federal structure of mineral-rich states such as Jharkhand.
The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which has been passed by both Houses of Parliament, seeks to restrict states from imposing taxes, cesses or other levies on mineral rights or mineral-bearing lands except subject to conditions or restrictions prescribed by the Centre.
The Bill also provides for invalidating certain levies that had not been deposited with or recovered by states before the amendment comes into effect.
Soren also raised constitutional concerns, citing the Supreme Court’s July 2024 judgment in Mineral Area Development Authority & Anr. v. Steel Authority of India Ltd. & Ors., in which a nine-judge Constitution Bench recognised the legislative competence of states to tax mineral-bearing land under Entry 49 of the State List.
Jharkhand subsequently enacted the Jharkhand Mineral Bearing Land Cess Act, 2024.
Soren argued that making the exercise of this state taxation power subject to conditions prescribed by the Centre “would substantially alter the existing constitutional and federal balance.”
He also opposed the retrospective treatment of unrecovered dues. The Supreme Court had allowed eligible past demands while directing that payments be staggered over 12 annual instalments beginning April 1, 2026.
Soren said the issue was not limited to Jharkhand, noting that mineral-bearing states including Odisha and Karnataka could also be affected. He called for a structured consultation process involving mineral-producing states, similar to the Goods and Services Tax Council mechanism.
The Chief Minister urged the Centre not to proceed with the legislation and said Jharkhand reserved its right to pursue constitutional and legal remedies, including before the Supreme Court. (ANI)
Related reading
