Karnataka Deputy CM Challenges New Mining Bill: Appeals for Federal Cohesion

Karnataka Deputy CM G Parameshwara has urged PM Modi and Union Minister G Kishan Reddy to reconsider the Mines and Minerals Amendment Bill, arguing it undermines state fiscal autonomy and federal principles. The bill, passed by Parliament, aims to provide stability in the mining sector but faces significant state opposition.

Karnataka's Deputy Chief Minister, G Parameshwara, has taken a firm stance against the Mines and Minerals (Development and Regulation) Amendment Bill, urging Prime Minister Narendra Modi and Union Minister G Kishan Reddy to revisit provisions that, he argues, threaten the fiscal autonomy of states.

In a letter sent on Tuesday, Parameshwara emphasized the implications that the legislative changes hold for fiscal federalism and state authority. He underscored that the bill particularly encroaches upon the power of state governments to impose taxes, citing constitutional provisions that safeguard state rights on mineral and land taxation.

Despite the Ministry of Mines’ assertion that the amendment enhances investment and ensures fiscal predictability, Parameshwara argued that it impacts the core federal structure by altering the balance of power detailed in the Seventh Schedule of the Indian Constitution. The ministry maintains that 90% of mining-related taxes currently benefit states, a status quo that will remain under the amended law.