The Mines and Minerals (Development and Regulation) Amendment Act, 2026 has revived concerns about the fiscal autonomy of mineral-rich States. Analyse the constitutional distribution of legislative and taxing powers over mines and minerals and suggest principles for cooperative federalism in this field. (150 words)

Mineral governance sits at the intersection of Union regulatory authority and State fiscal capacity. Its constitutional design requires coordination rather than unilateral centralisation.

• Entry 23 of the State List gives States power over regulation of mines and mineral development, subject to the Union’s field under Entry 54 of the Union List. • Parliament may declare the extent of Union control in the public interest through legislation. • Entry 50 of the State List concerns taxes on mineral rights subject to limitations imposed by Parliament; Entry 49 covers taxes on lands and buildings. • Articles 246, 268–281 and the Finance Commission framework structure legislative competence, revenue sharing and fiscal transfers.

• Expanding Union control over mineral-bearing land and invalidating uncollected State dues can narrow States’ predictable revenue base. • Mineral dependence is unequal: revenue loss can directly affect welfare, local infrastructure and just-transition obligations in States such as Jharkhand and Odisha. • Uniform national standards may reduce cascading levies and improve investment, but consultation deficits can produce litigation and weaken trust. • Cooperative federalism requires respecting the Supreme Court’s constitutional interpretation while allowing Parliament’s public-interest role within limits.

Create a permanent Centre-State mineral council; mandate prior consultation with affected States; use transparent, formula-based compensation for stranded legitimate dues; earmark a fair share for producing districts; publish impact assessments; and subject restrictions to necessity, proportionality and judicial review. GST Council-style consensus mechanisms can reduce zero-sum bargaining.

Entry 23 State List; Entry 54 Union List; Entry 50 State List; Entry 49 State List; fiscal federalism; mineral rights; MMDR Act; Finance Commission; cooperative federalism; proportionality; producing districts