Chennai, Aug 15 (IANS) Lok Sabha MP and MDMK leader Durai Vaiko has warned that the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, could severely affect Tamil Nadu’s revenue and undermine the fiscal autonomy of States.
In a statement, Durai Vaiko said he met Tamil Nadu Finance Minister Maria Wilson on Saturday morning and explained in detail the provisions of the Bill that could curtail the powers and financial resources of State governments. The Bill was passed by the Lok Sabha on August 12 and by the Rajya Sabha on August 13.
Durai Vaiko said Opposition MPs, including himself, had personally met Union Coal and Mines Minister G. Kishan Reddy and urged the Centre to refer the legislation to the Parliamentary Standing Committee for detailed examination. They had also demanded consultations with State governments before the Bill was taken up for passage.
He said he had submitted an amendment to Lok Sabha Speaker Om Birla seeking the deletion of Section 9D to protect the taxation powers of States. However, the Union government ignored the Opposition’s demands and passed the Bill in both Houses without a comprehensive debate.
According to Durai Vaiko, the newly inserted Section 9D restricts State governments from levying taxes on mineral rights and lands containing minerals. The provision could prevent States from collecting revenue and outstanding dues amounting to lakhs of crores of rupees. “This will affect crucial revenue sources of the States and pose a serious challenge to their financial autonomy,” he said.
Durai Vaiko pointed out that a nine‑judge Bench of the Supreme Court had ruled in 2024 that States possessed the authority to impose taxes on mineral‑bearing lands. Based on the judgment, the Tamil Nadu government enacted the Tamil Nadu Mineral Bearing Land Tax Act, 2024, and framed the relevant rules in 2025. The State began collecting the tax from April 4, 2025.
Of the Rs 4,395.68 crore in revenue generated by the Department of Geology and Mining during 2025‑26, Rs 2,265 crore came from mineral‑bearing land tax, he said. If the amendment comes into force, this important revenue stream could be disrupted.
Durai Vaiko stressed that the issue went beyond revenue loss, as it concerned the constitutional powers of States, fiscal autonomy and India’s federal structure. He urged the Finance Minister to press the Centre to protect Tamil Nadu’s financial rights and initiate appropriate legal action. Maria Wilson assured him that the government led by Chief Minister C. Joseph Vijay would take suitable steps.
–IANS
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