The ruling Jharkhand Mukti Morcha (JMM) and the Congress went up in arms on Thursday, protesting the amendment to the MMDR [Mines and Minerals (Development and Regulation)] Act passed by the Lok Sabha (LS) on Wednesday that reportedly seeks to take away the states’ rights to levy cess or any other tax on major minerals.A week after a nine-judge constitution bench of the Supreme Court ruled by majority on July 25, 2024, that states have the power to levy tax on mineral-bearing land, the Jharkhand Assembly passed a bill on August 2, to tax all kinds of mined minerals in the state.Jharkhand is one of the richest states in terms of mineral resources ranging from coal and iron ore to uranium and the new legislation aimed to augment the state’s revenue. The Assembly passed the ‘Jharkhand mineral-bearing land cess Bill 2024’, which provides for varying degrees of tax on different minerals on a per-metric-tonne basis. The Act was further amended in the 2025 Budget Session to increase the cess on mined minerals by up to four times.Officials said the state government projected revenue of ₹14,656 crore from the Mineral Bearing Land Cess in the 2026-27 budget. Around ₹9,000 crore of this revenue is designated to fund its flagship Mukhyamantri Maiyan Samman Yojana (MMSY), under which the government provides ₹2,500 each to around 5.1 million women every year.In a statement on the development, the JMM said while minerals would be extracted from Jharkhand’s soil, with its people bearing the burden—including displacement, pollution, the loss of forests and land, and the associated social cost—the right to levy cess on its own mineral-rich land would now be subject to Delhi’s terms.“In 2024, the SC recognised this right for the states. Jharkhand enacted a mineral land cess based on that very constitutional right. Now, the Centre is curtailing that right and has introduced a provision to invalidate even old, uncollected dues. Our land, our minerals, and the damage from mining is ours to bear—so why shouldn’t the right to generate revenue for our people’s development also be ours? The BJP must remember: Jharkhand is not asking for a favour regarding its minerals. It is demanding its constitutional right,” the party said.Congress legislature party leader Pradeep Yadav said the amendment was a direct attack on state rights. He stated the Centre was attempting to undermine the constitutional and financial rights of states, thereby depriving them of their legitimate dues.“The Central Government has introduced this amendment to snatch away the very right to levy additional cess on mineral resources that states had secured following a verdict by the SC Bench. This move runs counter to the spirit of cooperative federalism and deals a severe blow to the economic autonomy of states. The Centre’s intent is clear: to economically weaken states that do not align with its political ideology and to make them dependent on the Centre for their development and welfare schemes,” he said.Yadav said numerous welfare schemes benefiting the poor, women, farmers, and the needy were currently operational in Jharkhand and schemes like the ‘Maiyan Samman Yojana’ could also face adverse effects.He added the Congress opposed this Bill in Parliament and would fight vigorously in Jharkhand to protect the state’s rights. He called upon the Centre to immediately reconsider this decision and withdraw the amendment Bill.Finance minister Radha Krishna Kishore said the Centre had long been trying to weaken Jharkhand financially. “Be it disbursing funds under Jal Jeevan Mission, scholarships for students or funds against GST rationalisation, the Centre has been punishing the state. Recently, they shifted the financial burden onto the state through the VB-G RAM G Bill. Now they have overturned an SC ruling. We will oppose the move and if required, will also approach court,” he added.