Economy · 25 Aug 2026

MMDR Amendment Act 2026 Section 9D

Consider the following statements:

  1. Section 9D of the MMDR Amendment Act, 2026 bars states from imposing fresh taxes on mineral rights and also blocks retrospective recovery of past dues, effectively overriding the practical effect of a 2024 Supreme Court ruling.
  2. The 2024 Supreme Court ruling in Mineral Area Development Authority v. Steel Authority of India upheld states' powers to tax mineral rights under Entries 49 and 50 of the Union List.
  3. Odisha accounted for over 40% of India's national mineral production value in 2024-25 and mining constitutes over one-third of its projected 2026-27 state revenue.
AOnly one
BOnly two
CAll three
DNone
This question is based on: Rs 1 Lakh Crore Odisha Won't Collect - And Who Actually Pays For That
Take this in full test mode → Instructions for 25 Aug 2026
About this question

Why in news

Parliament's passage of the MMDR Amendment Act, 2026 has triggered a fiscal-federalism confrontation with Odisha, whose mining revenue is directly threatened by a provision that effectively overrides a landmark 2024 Supreme Court ruling on states' mineral taxation powers.

Why for UPSC

UPSC frequently tests whether candidates know which Schedule/List a specific taxation entry belongs to - confusing the State List with the Union List is a classic, high-value distinction in fiscal federalism questions.

Prelims summary

The MMDR Amendment Act, 2026's Section 9D bars fresh state mineral taxes and blocks retrospective dues recovery, overriding the effect of the 2024 SC ruling that had upheld state taxation powers under Entries 49 and 50 of the State List. Odisha (43.49% of national mineral output) is the most exposed state.

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