Jharkhand Mineral Cess Dispute: The government of Jharkhand will soon organise a special session of the Assembly. It is scheduled to be in the first week of November to voice opposition to the Centre’s changes in mineral cess laws. It will move a resolution disapproving the changes and send it to the Union government.
A final decision will be taken by the Cabinet of the state and permission will be provided to summon the session.
The special session comes after disagreements emerged between the Central government and the Jharkhand government regarding the right of the state to levy mineral cess.
The state is a major mineral producing state. However, given the fact that Jharkhand has large amounts of coal, iron ore and bauxite deposits, the state depends highly on mining revenues. The Hemant Soren government has voiced its disapproval towards the recent changes in the Mines and Minerals (Development and Regulation) Act, 1957 by the Centre. The changes may impact the state’s freedom to collect mineral cess.
The government will discuss the topic during the special session and try to get the Assembly’s support to move a resolution against the amended Act. They will send it to the Centre to inform them.
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The Mines and Minerals (Development and Regulation) Amendment Act, 2026 makes various changes. This includes banning states from imposing taxes, cesses or other charges on mineral rights/mineral bearing lands unless under certain circumstances laid out by the Central government.
This act has also made some changes with regards to dues or charges that were not paid. The Centre has said these changes will provide clarity on mining taxes, prevent high taxes and reduce expenses for mineral dependent industries.
According to an analysis by PRS Legislative Research of the Jharkhand 2026-27 Budget, the state expects to earn Rs. 14,656 crore in 2026-27 under the Mineral Bearing Land Cess. Whereas, they expected to earn Rs. 13,442 crore in 2025-26.
There are concerns that these changes will affect the state’s revenues in the future. However, the Centre have said that they will make the taxation system clearer for mining companies to be competitive whilst ensuring states still get their fair share of mining revenues.
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