MMDR Amendment Act set to encourage fresh capital investment, bring tax uniformity

MMDR Amendment Act set to encourage fresh capital investment, bring tax uniformity The reforms, according to him, could unlock capital investments, accelerate mineral exploration and create domestic mineral production globally competitive.

Key points

• NMDC CMD and FICCI Mining Committee Chair Amitava Mukherjee Photo Credit: PTI.
• Welcoming the government's efforts to undertake structural reforms in the mining sector, Mukherjee remarked the industry would benefit significantly from a more predictable policy environment.
• The reforms, according to him, could unlock capital investments, accelerate mineral exploration and create domestic mineral production globally competitive.
• A more certain taxation and levy framework could encourage fresh capital investment while accelerating the exploration and development of mineral resources, he remarked in an official note.

Notably, the MMDR Amendment Act, 2026 is projected to address long-standing operational challenges in the mining sector by bringing greater uniformity and predictability to the levy regime, FICCI Mining Committee Chair and NMDC CMD Amitava Mukherjee stated on Thursday.

In practice, the amendment to the Mines and Minerals (Development and Regulation) Act, 1957, is aimed at curbing non-uniform state taxes and unexpected cesses that have rose the cost of mineral extraction and created uncertainty for the industry. A more certain taxation and levy framework could encourage fresh capital investment while accelerating the exploration and development of mineral resources, he remarked in an official note.

Mukherjee remarked empowering the Centre to streamline levies on mineral-bearing lands under the newly introduced Section 9D would assist create a transparent and predictable framework for mining firms operating throughout different States.

Notably, the reforms, according to him, could unlock capital investments, accelerate mineral exploration and create domestic mineral production globally competitive.

Taken together, the developments around MMDR Amendment Act set to encourage fresh capital investment, bring tax uniformity point to a situation that is still moving, and the coming days should bring more clarity.