The Modi government has introduced a bill in parliament to restrict states'
powers to regulate or tax mineral rights and mineral-bearing land and to impose
Nationwide, uniform mining rules. Under the draft legislation New Delhi would be
able to set conditions and caps on taxes and other charges levied by regional
authorities, saying cumulative levies should not be disproportionate to a mine's
economic value and profitability. The proposal notes that despite adequate
domestic resources, domestic mineral supply has become costly and there is a
risk of rising imports. The move could curtail a material revenue source for
mineral-rich states and heighten tensions between New Delhi and state
governments.
