India: Jharkhand Chief Minister Urges Modi to Reconsider Mining Law
Jharkhand's Hemant Soren seeks changes to mining law affecting state revenue and welfare.
Jharkhand Chief Minister Hemant Soren has urged Prime Minister Narendra Modi to reconsider amendments to the mining law, citing a potential significant impact on revenue and welfare in the state. The meeting comes as many mining companies have already started shutting down operations due to restrictions imposed by the new bill. Restrictions on state-level mineral levies could significantly affect Jharkhand's revenues, with the state relying heavily on non-tax revenue for its welfare and development programmes.
The Mines and Minerals (Development and Regulation) Amendment Bill restricts states from imposing taxes on mineral rights, rendering a significant portion of Jharkhand's revenue vulnerable to changes in federal policy. Prior to the amendment, the state had enacted the Jharkhand Mineral Bearing Land Cess Act in 2024, which was later recognized by a Supreme Court judgment as having legislative competence. The court's decision effectively validated the state's right to tax mineral-bearing land, which would have mitigated some of the concerns expressed by Chief Minister Soren. However, the new law could still have a substantial economic impact on the sector, with many mining companies already shutting down operations due to the restrictions imposed by the bill. Industry insiders report that the closure of these operations will result in significant job losses, further exacerbating concerns over the potential economic hit from the new law.
The government is expected to make a decision on the mining bill soon, with the outcome likely to have far-reaching implications for Jharkhand's economy and population. Mr Soren's meeting with Prime Minister Modi was seen as an attempt to persuade the federal government to reconsider its stance on the bill, which would require significant changes to the current legislation. Industry insiders say that the closure of mining operations will result in significant job losses, further exacerbating concerns over the potential economic hit from the new law.
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