Archive · 14 Aug 2026

India's mining tax overhaul reignites Centre-state tussle over revenue

India's mining tax overhaul reignites Centre-state tussle over revenue

India's central government has made a new law about mining taxes.

Mining means digging useful things out of the ground, like coal, iron and limestone.

The new law says states, which are parts of India, cannot make new mining taxes unless the central government agrees.

It can also cancel some old mining taxes that states had planned but had not collected yet.

States with lots of mines, like Odisha and Jharkhand, are upset because they say they will lose money and lose their own power to make rules.

Jharkhand's leader called the law a "black law" and said people may protest.

He said mining money pays for about 85% of the state's own income that is not from central taxes.

The central government says the law makes the same rules for everyone, keeps mining costs down and helps companies feel sure about investing.

Mining companies mostly like the new law, but worried states may challenge it in court.

Sources