Ranchi, August 14: Jharkhand Chief Minister Hemant Soren has expressed serious concerns regarding the recently passed Mines and Minerals (Development and Regulation) Amendment Bill, 2026. In a five-page letter to President Droupadi Murmu, he urged for intervention, stating that the bill poses a significant challenge to the balance of center-state relations and the financial autonomy of Jharkhand. Soren shared this letter on social media as well.
In his correspondence, Soren highlighted that the implementation of this new central law could severely impact the revenue generated from minerals in Jharkhand. He warned that this could adversely affect the state’s social security, education, health, rural development, and other welfare schemes. For a mineral-rich state like Jharkhand, he emphasized that this issue transcends mere finances. It raises questions about the state’s rights over its mineral wealth and how the balance of power between the center and states will be maintained.
The Chief Minister specifically objected to the proposed new Section 9D of the MMDR Act. According to him, this provision would impose central conditions and limits on state governments when levying taxes, cesses, or other levies on mineral rights or land containing minerals.
Soren also expressed concerns that this could affect outstanding amounts from previously imposed cesses. He referenced a ruling from the Supreme Court’s nine-judge constitutional bench, which recognized the states’ rights to impose taxes or cesses on mineral lands. Following this ruling, the Jharkhand Assembly enacted the Mineral Bearing Land Cess Act in 2024.
In his letter, Soren provided statistics regarding the income generated from mining in Jharkhand’s economy. He cited the Jharkhand Economic Survey, stating that in the fiscal year 2024-25, approximately 84.9% of the state’s non-tax revenue would come from the mining sector. The Mineral Bearing Land Cess is expected to yield ₹1,379 crores in 2024-25 and ₹7,488 crores in 2025-26, with an estimated ₹13,215 crores in 2026-27. He warned that the new law could lead to a loss of thousands of crores in potential revenue annually, impacting programs that require substantial state funding.
Soren used the Mukhyamantri Mahila Samman Yojana as an example, which provides financial assistance to over 5 million women. Additionally, he noted that education, health, drinking water, rural development, and social security schemes depend on the state’s financial capacity. Although he clarified that cess revenue is not directly allocated to a single scheme, this additional income helps the state manage its initiatives.
The Chief Minister also raised longstanding issues related to Jharkhand’s mineral wealth. He pointed out that while the state has significantly contributed to the country’s industrial development, the costs of mining have been borne by local communities, particularly tribal populations, through displacement, land loss, pollution, and the loss of traditional livelihoods. Therefore, a fair share of mining revenues should be invested in the development of affected areas.
Soren reminded the President of her previous connection to Jharkhand, noting her tenure as Governor from 2015 to 2021, during which she closely observed the challenges faced by tribal and mining-affected regions. He urged her to seriously consider the implications of the bill and make a decision based on the constitutional options available.
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