India, Aug. 13 -- The Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, on Wednesday. The legislation essentially overturns a 2024 Supreme Court judgment that allowed states to levy their own taxes on mining and mineral extraction activities.

The legislation, on the one hand, brings a welcome predictable business environment for companies who undertake such operations. As events in the past few years have shown, mining has emerged as a strategic sector thanks to its critical role in global value chains. Large companies will be hesitant to invest if they face an arbitrary tax regime. This, however, cannot be the entire story; two more aspects must be considered when evaluating the larger impact of ...