States' share of revenue from India's mining and coal sectors has jumped from 65% to 88% in a decade, while the Centre's share has fallen to 12%, according to data shared by Union Coal and Mines Minister G Kishan Reddy after Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026.
Mineral revenue: a decade of transfer to states
According to the mines ministry data cited by PTI, states collected Rs 13,258 crore from mineral revenue in 2014-15, rising to Rs 71,035 crore in 2024-25. The central government's collection over the same period rose only marginally, from Rs 7,102 crore to Rs 8,932 crore. In percentage terms, states' share of total mineral revenue increased from 65% to 88%, while the Centre's share declined from 35% to 12%.
| Metric | 2014-15 | 2024-25 |
|---|---|---|
| States' mineral revenue (Rs crore) | 13,258 | 71,035 |
| States' share (%) | 65% | 88% |
| Centre's mineral revenue (Rs crore) | 7,102 | 8,932 |
| Centre's share (%) | 35% | 12% |
Coal revenue: states now take 96%
A similar shift is visible in coal sector revenue, according to the data. States' share rose from 55%, or Rs 11,948 crore, in 2014-15, to 96%, or Rs 58,592 crore, in 2024-25. The central government's share of coal revenue declined at the same pace, from 45% to 4% over the decade.
Parliament passes the Mines and Minerals Amendment Bill, 2026
Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to restrict states' powers to levy taxes on mineral rights and mineral-bearing lands. The Lok Sabha passed the bill on Wednesday, and the Rajya Sabha cleared it on Thursday, completing the parliamentary approval process. PTI reported the bill will become law after receiving the President's assent.
Speaking to reporters after the bill's passage, Reddy said the new legislation will ensure uniform mineral rates across the country.
Minister: no revenue loss, rates to rise with production
Reddy said the new legislation will not impact the fiscal position of any state, and the revenues of state governments would continue to increase in tandem with production growth.
"The central government will not take any revenue even today, nor is there any plan to take it as of now." — G Kishan Reddy, Union Coal and Mines Minister
"...there won't be even a single rupee's loss of income or revenue. Rates will continue to rise based on production -- as production increases, revenue increases accordingly," the minister told reporters, according to PTI.
Clarifying the mechanism for future revisions, the minister explained that whenever mineral rates or cesses are revised, they will increase uniformly across the country.
What the data means for mining stakeholders
For companies holding mining leases and for commodity analysts tracking Indian mineral supply, the mines ministry data shows states now retain 88% of mineral revenue and 96% of coal revenue. According to the minister, future revisions of mineral rates or cesses will apply uniformly across the country, providing clarity on how royalty changes will be implemented.
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