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Informist, Thursday, Aug. 13, 2026

 

--Mines Minister: No impact on revenue of states due to new mines bill 

--CONTEXT:Comments by Minister of Coal and Mines G Kishan Reddy in press meet 

--Mines Minister: Aiming to reduce steel, coal imports through new mines bill 

--Mines Minister: New mines bill to aid coal output, meet 100% domestic need 

 

NEW DELHI – There will be no impact on state revenues because of the Mines and Minerals (Development and Regulation) Amendament Bill, 2026, Minister of Coal and Mines G. Kishan Reddy told reporters at a press conference. The Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Bill, 2026.  

 

The minister said that only major minerals are included under the provisions of mines bill. "We have not taken any rights from the state government. This is why we want to increase the production of major minerals in the coming days," the minister said, adding that the bill would only impact 11-12 states that produce major minerals. 

 

The minister said there would be no impact on 49 minor minerals. "The state government has the right to impose taxes on the mining sector. They are putting it in the minor minerals. We are not involved in anything," the minister said. 

 

He said the revenue of states would increase once mineral production increases. "The taxes that should be reduced should not be increased. We have taken it (Mines Bill) from that perspective...Now whenever the rate (of minerals) will increase, the entire country's rate (for minerals) will increase. If the entire country's rate increases, then automatically the state's revenue increases...If any rate has to increase, the rate will increase in 11 states equally. 11 states generate revenue on the basis of their production," the minister said. 

 

The bill aims to reduce steel and coal imports and support coal output in order to meet 100% domestic demand, as per the minister. "There is a demand for coal. 100% domestic coal production should be done...We are also trying to increase the production of iron ore, limestone and bauxite," the minister said. 

 

On a question related to coal costs, the minister said the government has not increased coal prices since 2018. "The production cost has increased. Equipment (cost) has increased. Input costs have increase.... we supply coal to coal power companies at a low rate. There should be no burden on the consumer," the minister said.  

 

The bill is likely to boost investment in the mining sector, as per the minister. "We keep coming up with new auction blocks for copper, iron ore and coal blocks. We are auctioning more commercial blocks. Because of this, the future investment will increase," the minister said. Elaborating on this further, Ministry of Coal Additional Secretary Sanoj Kumar Jha said if taxation is not implemented in states, mining will shift from one state to another, which could increase overall stress on the system. 

 

 

The government also plans to set up a mineral exchange and coal exchange. It will take eight to nine months to set up the coal exchange, a senior coal ministry official said. 

 

On critical minerals, the government has signed memoranda of understanding with 20 countries, including France, Japan, Australia and Latin American countries such as Argentina, Brazil, and Bolivia, a senior mining ministry official said. "We are engaging with a wide spectrum of countries for critical minerals. Mainly, they include rare earths, lithium, nickel etc," the official said. 

 

The government's public sector vehicle for acquiring assets abroad, KABIL, has also acquired exclusive rights for exploration and mining in five blocks in Argentina, the mining ministry official said. The government also plans to set up critical mineral processing parks in Gujarat, Maharashtra, Andhra Pradesh, and Odisha for lithium and nickel, as per the official.  End

 

Reported by Astha Oriel

Edited by Avishek Dutta

 

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