Centre’s Mines Bill erodes states’ powers: CPI secretary M Veerapandian

CHENNAI: CPI state secretary M Veerapandian on Friday urged the Union government to withdraw the Mines and Minerals (Development and Regulation) Amendment Act, 2026, alleging that it would undermine states' fiscal powers and enable corporates to exploit natural resources.

In a statement, Veerapandian said the amendment would give the Centre greater control over states' tax, cess and other revenue powers from mineral resources, weakening their financial autonomy and constitutional rights.

He said the move came despite the Supreme Court's 2024 judgment upholding states' taxing powers over mineral rights. The Centre's attempt to override these powers was a deliberate effort to centralise control over natural resources, he alleged.

The amendment would have a major impact on mineral-rich Tamil Nadu by curbing its policy-making powers and revenue from natural resources, he said.

Veerapandian also warned that the legislation could threaten the land, livelihoods and traditional rights of tribal and forest-dependent communities by prioritising mining projects over the community and individual forest rights guaranteed under the Forest Rights Act, 2006.

Mineral resources were public assets and should be used for public welfare, environmental protection and social justice, not corporate profits, he said.

The Tamil Nadu government should strongly oppose the amendment and press the Centre to withdraw it immediately, Veerapandian said.