Thiruvananthapuram: Kerala Chief Minister V D Satheesan has written to Prime Minister Narendra Modi seeking a review of provisions in the Mines and Minerals (Development and Regulation) Amendment Bill passed by Parliament.

Satheesan said that the new Bill could undermine the constitutional and fiscal powers of states. He added that the proposed Section 9D, which makes the power to levy taxes, cess and other levies on mineral-bearing land subject to criteria prescribed by the Centre, would affect the constitutional powers of states.

The Bill also contains provisions to bring mineral-bearing land under central control and waive pending state taxes.

He said the amendments could have significant implications for Kerala, which has mineral deposits in several parts of the state. “Restricting the state’s fiscal powers over mineral-bearing land could adversely affect state revenue as well as the tax income of local self-government institutions,” he said.
Satheesan urged the Prime Minister to intervene urgently and address Kerala’s concerns over the proposed amendments.

Referring to a 2024 Supreme Court judgment, Satheesan said royalty on mining rights is not a tax. Under Entry 50 of List II of the Seventh Schedule of the Constitution, states have the power to levy taxes on mineral rights, he said.

The Supreme Court has also recognised the power of states to impose taxes on land containing mineral resources based on the quantity or value of mineral production, Satheesan pointed out in his letter.