UPSC Prelims Practice Questions — Why are States divided over the mining amendment?

Q1. With reference to the constitutional distribution of power over the regulation of mines and mineral development in India, consider the following statements: Which of the statements given above is/are correct?

  1. The State List power to regulate mines and mineral development is expressly made subject to Union List provisions on regulation and development under Union control.
  2. Union control over the regulation of mines and mineral development extends to all mines automatically, without any declaration by Parliament.
  3. Once Parliament declares by law that Union control is expedient in the public interest, State regulation operates only in the space left open by that law.
  • A. 2 and 3 only
  • B. 1, 2 and 3
  • C. 1 and 3 only
  • D. 1 only

Q2. With reference to the taxing powers of States relating to land and minerals under the Seventh Schedule, consider the following statements: Which of the statements given above is/are correct?

  1. Of the State List entries on taxes on lands and buildings and on taxes on mineral rights, only the latter is expressly made subject to limitations imposed by Parliament.
  2. A State may levy a tax on mineral rights only after Parliament has enacted a law authorising such a tax.
  3. Taxes on mineral rights are a Union List subject, and their proceeds are assigned to the States.
  • A. 1, 2 and 3
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1 only

Q3. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. The provision of the MMDR Amendment Act, 2026 that deems unpaid State mineral levies from before its commencement invalid is void under Article 20(1) of the Constitution as an ex post facto law.
  2. Article 20(1) protects a person from conviction under, or a heavier penalty imposed by, a criminal law made after the act was committed.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q4. With reference to the original jurisdiction of the Supreme Court under Article 131 of the Constitution of India, consider the following statements: Which of the statements given above are correct?

  1. A dispute in which the Government of India and some States are on one side and another State is on the other side can fall within this jurisdiction.
  2. The High Courts share this jurisdiction with the Supreme Court when the dispute concerns a central law.
  3. This jurisdiction covers any political disagreement between the Union and a State, whether or not a legal right is involved.
  4. Disputes arising out of certain pre-Constitution treaties, agreements or sanads that continue in operation are excluded from this jurisdiction.
  • A. 1 and 4 only
  • B. 1 and 3 only
  • C. 1, 3 and 4 only
  • D. 2 and 4 only

Q5. Consider the following features of the MMDR Amendment Act, 2026: States may impose taxes, cesses or levies on mineral rights and mineral-bearing lands only in accordance with conditions prescribed by the Central Government; 'mineral-bearing land' means land having mineral content in accordance with parameters prescribed by the Central Government; and State levies left unpaid before the Act's commencement are deemed invalid. Which of the following inferences can be drawn from the above?

  1. The Act reverses the Supreme Court's holding that royalty is not a tax.
  2. The Union's choice of parameters can widen or narrow the base on which State levies are subject to its conditions.
  3. States can no longer earn any revenue at all from minerals extracted within their territory.
  4. A State's ability to raise revenue through new mineral levies now depends on terms set by the Union.
  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 3 and 4 only
  • D. 1, 2 and 4 only

Q6. Several State governments have announced a challenge in the Supreme Court to the MMDR Amendment Act, 2026. In this context, consider the following statements: Which of the statements given above is/are correct?

  1. A mining company aggrieved by the Act cannot bring its challenge under Article 131, because that jurisdiction is confined to disputes involving the Government of India and the States as parties.
  2. A State government can invoke Article 32 to enforce its legislative competence over mineral taxation as a fundamental right.
  • A. 1 only
  • B. 2 only
  • C. Both 1 and 2
  • D. Neither 1 nor 2