Centre will seize control of Rajasthan’s mineral wealth, says Gehlot warning Bhajan Lal govt over MMDR Amendment Bill

Jaipur, Aug 11 (IANS) Senior Congress leader and former Rajasthan Chief Minister Ashok Gehlot on Tuesday urged the Bhajan Lal Sharma-led state government to oppose the proposed Mines and Minerals (Development and Regulation) Amendment Bill (MMDR Amendment Bill), warning that the legislation could undermine the state’s authority over its mineral resources and revenue.

Gehlot said the Rajasthan government must immediately raise its voice against the proposed changes in Parliament.

He warned that continued silence could amount to a “betrayal” of Rajasthan’s mineral revenue and employment opportunities.

In a post on social media platform X, Gehlot alleged that the Central government was attempting to consolidate greater control over mineral-rich land and the taxes, royalties and cesses associated with mineral resources.

He said that Rajasthan has 34,445 mines, generates around Rs 10,394 crore in revenue from the sector and provides employment to around 30 lakh people.

According to Gehlot, the proposed amendment would affect the state’s financial autonomy by restricting its ability to impose or recover certain levies on mineral rights and mineral-bearing land.

He particularly criticised the proposed Section 9D, which he said would prevent states from recovering certain outstanding tax, cess or levy dues imposed on mineral rights or mineral-bearing land before the amended provisions came into force.

He alleged that the provision could result in revenue that would otherwise accrue to states being lost.

Gehlot also compared the proposed changes with the introduction of the Goods and Services Tax (GST), saying that the promise of a uniform tax structure had previously resulted in financial losses for states.

“This is not an administrative reform,” he said, alleging that the proposed changes could make states increasingly dependent on the Centre.

Union Mines Minister G. Kishan Reddy recently introduced the MMDR Amendment Bill in the Lok Sabha.

The proposed legislation seeks to regulate the imposition of taxes, royalties, cesses and other levies on mineral rights and mineral-bearing land.

Under the proposed framework, the Central government would have greater authority to prescribe conditions and restrictions relating to such levies.

Another significant proposed change concerns land containing common minerals.

While the existing framework primarily focuses on the development of mines and minerals, the proposed amendments would expand the regulatory framework to mineral-bearing land as well.

One of the key provisions of the proposed amendment concerns taxes, cesses or other levies imposed by state governments before the amended provisions take effect.

Under the proposed Section 9D, certain such levies that remain unpaid could be treated as having no legal requirement for payment.

At the same time, amounts that have already been deposited or collected would not be required to be refunded.

Gehlot has called on the Rajasthan government to take a clear position on the proposed legislation, stressing the importance of protecting the state’s mineral revenue, economic interests and employment linked to the mining sector.

–IANS

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