Jharkhand Chief Minister Hemant Soren has urged Prime Minister Narendra Modi to reconsider the recently passed mining legislation, warning that it could severely impact the finances of mineral-rich states. In a letter to the Prime Minister, Soren said the proposed restrictions on state levies related to mining would substantially reduce Jharkhand's revenue.
According to Soren, the state's Mineral Bearing Land Cess is expected to generate around ₹7,110 crore annually, making it a crucial source of income. He noted that mining-related revenue accounted for nearly 84.9% of Jharkhand's non-tax revenue during the 2024-25 financial year, making it vital for funding development and welfare schemes.
The new law, passed by Parliament, limits the powers of state governments to impose new taxes, cesses, or levies on mineral rights and mineral-bearing land unless permitted by conditions laid down by the Centre. The Union government says the legislation aims to create a uniform taxation framework for the mining sector and reduce inconsistencies across states.
Soren also cautioned that reduced mining revenue could weaken social welfare programmes, infrastructure development, and environmental protection efforts in mining-affected regions. He appealed to the Centre to review the legislation in the interest of states that rely heavily on mining for their economy.
