New Delhi, Aug 13 (PTI) States have recorded a steep surge in their revenue from mining and coal sectors over the past decade, while the central government’s share has declined at the same rate, according to data shared by Union Minister G Kishan Reddy.
Speaking to reporters after the passage of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, in Parliament, the coal and mines minister said that the new legislation will ensure uniform mineral rates across the country.
Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to restrict states’ powers to levy taxes on mineral rights and mineral-bearing lands.
The Lok Sabha had passed the bill on Wednesday, while the Rajya Sabha cleared it on Thursday, completing the parliamentary approval process. The bill will become a law after receiving the President’s assent.
According to data shared by the mines ministry, states’ share in mineral revenue has increased from Rs 13,258 crore in 2014-15 to Rs 71,035 crore in 2024-25. During the same period, the collection of the central government has risen marginally from Rs 7,102 crore to Rs 8,932 crore.
Percentage-wise, states’ share in the total revenue collection has increased from 65 per cent to 88 per cent in the past 10 years. However, the Centre’s collection has declined from 35 per cent in 2014-15 to just 12 per cent in 2024-25, the data showed.
Similarly, in the coal sector revenue, the share for states increased from 55 per cent, or Rs 11,948 crore, in 2014-15 to 96 per cent, or Rs 58,592 crore, in 2024-25.
However, the central government’s coal sector revenue declined at the same pace from 45 per cent to 4 per cent.
Reddy said that the new legislation will not impact the fiscal position of any state, and the revenues of state governments would continue to increase in tandem with production growth.
“The central government will not take any revenue even today, nor is there any plan to take it as of now,” the minister told reporters here.
“…there won’t be even a single rupee’s loss of income or revenue. Rates will continue to rise based on production — as production increases, revenue increases accordingly,” Reddy said.
Clarifying the mechanism for future revisions, the minister explained that whenever mineral rates or cesses are revised, they will increase uniformly across the country. PTI SID HVA
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