Jharkhand Chief Minister Hemant Soren has made a formal plea to Prime Minister Narendra Modi to rethink the Mines and Minerals (Development and Regulation) Amendment Bill, 2026. In an August 13 letter,Soren warned the bill's limits on state levies could cripple Jharkhand's fiscal strength, risking its ability to handle mining's social and environmental fallout.
Mining revenue is expected to make up a massive 84.9% of Jharkhand's non-tax revenue in 2024-25. Soren stressed that cutting this revenue stream would hit the state's development and welfare efforts hard.
Soren noted the Mineral Bearing Land Cess should bring in about ₹7,110 crore each year. He called this income crucial for essential services like healthcare,education,and infrastructure in mining-hit areas . With Jharkhand producing roughly 40% of India's minerals,its resources are a national asset.
But Soren said this wealth comes with a price . Years of mining have caused major displacement, environmental damage,and social disruption . He argued Jharkhand's minerals shouldn't be seen just as economic gains, given ongoing challenges.
“Cutting this revenue would directly threaten Jharkhand's ability to sustain development and welfare,” Soren said. He linked the state's budget health to programs like Mukhyamantri Maiyaa Samman Yojana,which aims to empower economically disadvantaged women .
Soren also raised alarms over the bill extending Union control over mineral lands,saying it encroaches on state rights. He cited a Supreme Court ruling from July 25, 2024, affirming states' authority to tax lands with mines and quarries.
Soren urged Modi to rethink bill as it stands. He called for talks with other mineral-rich states like Odisha and Karnataka to ensure affected voices are heard before any restrictions take effect. He suggested a mechanism like the GST Council to guide these discussions.
“This is not just about revenue,” Soren remarked, pointing out the bill's limits could block the government's ability to meet development needs and fulfill welfare promises. He warned losing fiscal resources suddenly could spark public unrest in areas already dealing with mining's negative effects.
Separately, Soren reached out to Congress leader Rahul Gandhi,asking him to advocate for Jharkhand's people. He said the state is committed to cooperative federalism and sustainable mining but insists its people deserve benefits from their land's resources.
As debate over amendment bill continues,Soren has reserved Jharkhand's right to seek legal action, including possible Supreme Court challenges,if the bill moves forward without addressing state concerns.
