Published Aug 17, 2026 | 9:17 PM ⚊ Updated Aug 17, 2026 | 9:23 PM
The mineral sand rich shores of Alapad in Kollam. (KA Shaji/South First)
Synopsis: Chief Minister VD Satheesan pointed out that the amendment contains provisions that could bring mineral-bearing land under greater central control and provide for the elimination of outstanding state taxes.
Chief Minister VD Satheesan has written to Prime Minister Narendra Modi seeking an immediate review of provisions in the Mines and Minerals (Development and Regulation) Amendment Bill passed by Parliament, arguing that they could curtail constitutional and financial powers of states.
Satheesan has particularly flagged the proposed Section 9D, under which the states’ power to impose taxes, cess and other levies on mineral-bearing land would be subject to norms prescribed by the central government.
He said such a provision would undermine the states’ constitutional authority over mineral-rich land and adversely affect their revenue-raising powers.
The Chief Minister also pointed out that the amendment contains provisions that could bring mineral-bearing land under greater central control and provide for the elimination of outstanding state taxes.
He warned that the changes could have significant financial implications for Keralam, which has deposits of several minerals, and could also affect the tax revenue of local self-government institutions.
In his letter, Satheesan cited the Supreme Court’s 2024 judgment, which held that royalty payable on mining rights is not a tax.
He noted that the judgment recognised the states’ power to impose taxes on mineral rights under Entry 50 of List II of the Seventh Schedule to the Constitution.
The Chief Minister further highlighted the Supreme Court’s recognition of the states’ authority to levy taxes on mineral-bearing land based on the quantity or value of mineral production under Entry 49 of List II.
Satheesan urged the Prime Minister to intervene immediately and review the provisions that, according to him, could restrict the constitutional powers of the states and undermine their financial position.
