ONE MAN’S LOSS is another man’s gain. Seems that has come true in the case of Tamil Nadu due to a new law notified by the union government. Recently, the Ministry of Mines notified the Mines and Minerals (Development and Regulation) Amendment Act, 2026 has come to force post parliament nod. As per the new Act states can no longer freely tax mineral rights or mineral bearing lands on their own. It must be done under certain conditions imposed by the centre.
This comes as a blow for Tamil Nadu government. Post a 2024, supreme court verdict upholding states’ power to tax mineral rights, Tamil Nadu government introduced the Tamil Nadu Mineral Bearing Land Tax Act, 2024 to levy tax on minerals. Few more states too imposed the levy. The tax offered a major source of revenue for Tamil Nadu, amid a tight financial position. The state projects minerals Blow For TN Govt, Relief For Cement Industry? revenue from the mineral tax to be over Rs 3000 crore in the revised budget projections for 2026-27.
The centre’s move now totally changes the equation and comes as a setback for the state. Meanwhile, sectors like cement would be re lieved. Cement makers have been complaining that Tamil Nadu is the only state where such a huge levy is imposed, which is Rs 160 per tonne of limestone, from April 2025. The industry also urged the state government to reduce the levy. It would be interesting to see what approach Tamil Nadu government takes to protect is revenue? Reportedly some states are planning to move the apex court. One has to wait and watch to see who will have the last laugh