CHENNAI: Chief Minister C Joseph Vijay has opposed the recently enacted Mines and Minerals (Development and Regulation) Act, 2026, joining Kerala, Karnataka, Jharkhand and several other states in raising concerns over provisions that curtail the states’ powers to levy taxes on major and minor minerals.
In a letter dated August 17 to Prime Minister Narendra Modi, Vijay expressed the state’s reservations over the MMDR Act, 2026. The CM also objected to a provision that would cancel all pending and unpaid taxes payable by mining operators to the state from the date on which the amended Act comes into force, sources said.
Despite stating that the amendments could jeopardise the state’s interest, the TVK government has not made the letter to the PM public. Interestingly, neither the DMK nor the AIADMK has opposed the amendments so far.
Responding to a question raised by PMK MLA A Ganeshkumar in the Assembly on Tuesday, Natural Resources Minister TK Prabhu said the chief minister had already written to the PM and that discussions at the secretary level were under way to safeguard the state’s interests.
Official sources told TNIE that the CM, in his letter, highlighted that the amendments would have significant implications for the Tamil Nadu Mineral Bearing Land Tax Act, 2013, and the Tamil Nadu Mineral Bearing Land Tax Rules, 2013. He pointed out that the state had earned `2,248 crore through the Mineral Bearing Land Tax in 2022-23, marking a steady increase in revenue from the sector.
He also flagged the possibility of double taxation on minerals. The amended provisions of MMDR Act allow states to impose taxes or cess on minerals subject to conditions or restrictions prescribed by the union government.
As per official data, the state earned around `4,356 crore from the mining sector in 2025-26 through the regulation of mining and minerals and has set a target of increasing the revenue to around `11,000 crore in 2026-27.