Mounting criticism in Kerala over Centre’s Mines and Minerals Amendment Act

Leader of the Opposition Pinarayi Vijayan says the amendment should therefore be viewed as a direct challenge to States’ fiscal and legislative autonomy. | Photo Credit: SPECIAL ARRANGEMENT Protests are mounting in Kerala over the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, passed in Parliament, which both the ruling front and the Opposition in the State say completely disregards the federal principles guaranteed by the Constitution.Leader of the Opposition Pinarayi Vijayan has termed the MMDR Amendment Act an assault on the federal structure envisaged by the Constitution and urged the United Democratic Front (UDF) government in Kerala to challenge its provisions in the Supreme Court.On Thursday (August 13, 2026), Chief Minister V.D. Satheesan had stated that the State government would mount a strong political opposition and, if necessary, legal opposition to the Act. He pointed out that the legislation amounted to “a serious encroachment on the State’s constitutional powers over land and poses a grave threat to India’s federal structure.”‘Encroaches upon States’ domain’In a Facebook post on Friday (August 14), Mr. Vijayan said the amendment, by restricting the power of States to impose taxes, cess and other levies on mineral rights and mineral-bearing land, encroaches upon the States’ constitutional domain.Land falls under Entry 18 of the State List in the Seventh Schedule, while taxation of land is also a State subject, he pointed out.One of the provisions in the MMDR amendment Act gives the Union government control over the regulation of mines and development of mines and “mineral-bearing lands” under the Centre’s regulations.State leviesKerala’s concerns assume significance because the amendment empowers the Centre to prescribe conditions and restrictions governing State levies on mineral rights and mineral-bearing land.Mr. Vijayan said the amendment should therefore be viewed as a direct challenge to States’ fiscal and legislative autonomy. He questioned whether the UDF government was prepared to take a stand against the Centre and protect Kerala’s federal rights.He also alleged that the legislation formed part of a broader policy to open India’s precious mineral wealth, including strategically important and rare minerals, to private monopolies.Centre’s argumentThe Centre had argued that the new amendment is intended to promote mineral production, ensure mineral security and create a more uniform regulatory framework. Mr. Vijayan, however, alleged that the larger objective was to weaken the public sector and create opportunities for corporates to reap windfall profits.The Opposition leader also alleged that the UDF government had taken the same approach as the Centre towards the entry of private operators into sandmining. He pointed out that the UDF government’s Revised Budget and the White Paper on the State’s finances had contained proposals to fully privatise beach sandmining.Rare earth corridorsThe Union Budget 2026-27 proposed dedicated rare earth corridors in mineral-rich States including Kerala, with the stated objective of promoting mining, processing, research, and manufacturing. Mr. Vijayan said the State government’s proposed rare earth corridor was a similar attempt to hand over the State’s coastal mineral wealth to private companies. He alleged that the covert moves to “destroy” the State’s public sector undertaking, Kerala Metals and Minerals Ltd., are part of the privatisation agenda of the government.Mr. Vijayan alleged that KMML’s sandmining activities at Chavara are being curtailed to the extent that the public sector enterprise that was running profitably is no longer able to continue its operations. He pointed out that it was curious and strange that KMML is now being forced to procure more than twice its monthly requirement of raw materials from private firms at higher rates.Mr. Vijayan said that any move to weaken and close down KMML and facilitate private sector’s control over Kerala’s mineral resources should be resisted tooth and nail.Fishers’ forum raises issueThe Kerala Matsyathozhilali Aikyavedi has also raised its voice that Kerala’s rich beach sand mineral belt and offshore zone must not be surrendered to big private monopolies, as the Central government is allegedly attempting to do, through the recent MMDR amendment Act.The organisation said the Centre was amending all existing mining laws to make way for the private sector to gain monopoly in the mining sector.It said the State government had remained silent about the announcement of a dedicated mineral corridor spanning Kerala, Tamil Nadu, Andhra Pradesh and Odisha in the Union Budget, even though the Chief Minister had assured that private players will not be entertained in the mining sector. In the light of the new amendment brought in by the Centre, the State government should now clarify its position regarding the MMDR amendment Act, the fish workers’ organisation said. Published - August 14, 2026 05:37 pm IST