Ranchi: The Jharkhand government has decided to approach the Supreme Court against the Mines and Minerals (Development and Regulation) Amendment Act, 2026, with Chief Minister Hemant Soren approving the move, Finance Minister Radhakrishna Kishore said.
The state has raised concerns over the amendment’s provisions relating to mineral cess and its impact on Jharkhand’s claimed dues from coal companies and the Centre.
State Cites ₹14,000 Crore Potential Revenue Impact
Kishore said Jharkhand had expected to collect around ₹14,000 crore through mineral cess during 2026-27 and that the amended law would affect the state’s ability to collect the levy.
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The state government had introduced the Jharkhand Mineral Bearing Land Cess Act, 2024, under which it sought to levy cess on mineral-bearing land.
The state has raised concerns over:
- The impact of the amended law on mineral cess.
- The status of past dues and levies.
- Jharkhand’s claimed ₹1.36 lakh crore in coal royalty and land-rent dues.
- The financial implications of the changes for the state government.
Kishore said the state would continue pursuing recovery of the revenue it believes is due to it.
“We will recover this loss under all circumstances,” the minister said, referring to the estimated ₹14,000 crore impact.
Jharkhand Plans Supreme Court Challenge
The Finance Minister said the state would pursue the matter through legal channels and approach the Supreme Court for relief.
“The Jharkhand government intends to fight this on two fronts — before the people and in the Supreme Court,” Kishore said.
The government has also reviewed the amendments with officials from the Finance and Mines departments to assess their implications for the state’s revenue and mineral-related rights.
Amendment Changes Rules on State Mineral Levies
The MMDR Amendment Act, 2026 changes the legal framework governing levies imposed by states on mineral rights and mineral-bearing land.
Reports on the amended provisions indicate that the law restricts states from imposing certain taxes, cess, fees or other levies on mineral rights or mineral-bearing land when the charge is linked to mineral quantity or value. It also addresses the treatment of certain past levies.
Jharkhand’s challenge is centred on how these provisions affect the state’s mineral cess and its claims relating to past dues.
State Highlights Costs Linked to Mining
Kishore also said Jharkhand bears expenditure associated with the impact of mining and mineral transportation, including damage to roads and concerns related to health and the environment.
The state government has maintained that its mineral resources and the associated revenue are important to its finances and has decided to contest the amended law before the apex court.
The Supreme Court challenge is expected to determine the legal position on the issues raised by Jharkhand.
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