Kerala CM Satheesan Writes to PM Modi, Seeks Mining Law Amendment Review

Thiruvananthapuram: Keralam Chief Minister VD Satheesan has written to Prime Minister Narendra Modi urging a reconsideration of provisions in the Mines and Minerals (Development and Regulation) Amendment Bill passed by Parliament.

According to the Chief Minister's Office, CM Satheesan stated that it could undermine the constitutional and fiscal powers of the states.

He said the proposed Section 9D, which makes the power of states to levy taxes, cess and other levies on land containing mineral deposits subject to criteria prescribed by the Central Government, would affect the states' constitutional powers.

The Chief Minister also pointed out that the Bill contains provisions to bring land with mineral resources under greater central control and to extinguish pending state tax liabilities.

He said the amendments could have serious implications for Keralam, which has significant mineral deposits. Restricting the state's fiscal powers over mineral-bearing land could adversely affect state revenues as well as the tax revenues of local self-government institutions, he said.

Satheesan urged the Prime Minister to intervene urgently and address Keralam's concerns regarding the proposed amendments.

Referring to the Supreme Court's 2024 judgment, the Chief Minister noted that royalty on mining rights is not a tax. Under Entry 50 of List II of the Seventh Schedule of the Constitution, states have the power to levy taxes on mineral rights.

He further pointed out that the Supreme Court has recognised the states' power under Entry 49 to levy taxes on land containing mineral resources based on the quantity or value of mineral production.

The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was passed by both the Houses of Parliament on August 13, 2026. The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) with the aim of bringing long-term stability in the major minerals sector.