UPSC Prelims Practice Questions — Mines Bill won’t affect autonomy of States, Minister says in RS

Q1. The Mines and Minerals (Development and Regulation) Act, 1957 rests on a declaration by Parliament that it is expedient in the public interest for the Union to take under its control the regulation of mines and mineral development. Such a declaration is made under which one of the following entries of the Seventh Schedule?

  • A. Entry 52 of the Union List, dealing with industries the control of which by the Union is declared expedient in the public interest
  • B. Entry 54 of the Union List, dealing with regulation of mines and mineral development to the extent declared expedient in the public interest
  • C. Entry 23 of the State List, dealing with regulation of mines and mineral development subject to the provisions of the Union List
  • D. Entry 50 of the State List, dealing with taxes on mineral rights subject to limitations imposed by Parliament

Q2. The mining-taxation controversy settled by the Supreme Court in 2024 turned on four entries of the Seventh Schedule: Entry 23, Entry 49, Entry 50 and Entry 54. How many of these four entries belong to the State List?

  • A. One
  • B. Two
  • C. Three
  • D. All four

Q3. As held in Mineral Area Development Authority v. Steel Authority of India (2024), a State's competence to tax mineral rights can be curtailed by which one of the following?

  • A. Parliament, by enacting a law relating to mineral development, which may go to the extent of prohibition
  • B. The Central Government alone, by executive notification issued by the Ministry of Mines, which is final and binding
  • C. The GST Council, whose recommendations on all levies connected with minerals are binding on every State
  • D. The Finance Commission, which alone determines the entire scope of States' taxing powers over natural resources

Q4. Which one of the following statements about the principal precedent departed from by the nine-judge Bench in the 2024 mineral-taxation ruling is correct?

  • A. India Cement Ltd. v. State of Tamil Nadu (1989), which had held that royalty is a tax, was the position departed from
  • B. India Cement Ltd. v. State of Tamil Nadu (1989), which had held that royalty is a contractual payment and not a tax, was the position departed from
  • C. State of West Bengal v. Kesoram Industries (2004), which had held that royalty is a tax on mineral rights, was the position departed from
  • D. Hingir-Rampur Coal Co. v. State of Orissa (1961), which had held that States cannot regulate mines at all, was the position departed from

Q5. Defending the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 in Parliament, the Union Mines Minister said the restriction applies only to major minerals and leaves untouched the States' existing powers over how many minor minerals?

  • A. 23
  • B. 31
  • C. 49
  • D. 55

Q6. Consider the following statements comparing the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 with earlier interventions in the mineral sector: 1. The 2026 Bill inserts a new Section 9D barring a State Government from imposing any tax, cess or other levy on mineral rights or mineral-bearing lands except in accordance with conditions or restrictions prescribed by the Central Government. 2. Unlike the 2015 amendment, which created the District Mineral Foundation, the 2026 Bill requires State Governments to refund to lessees all amounts of such levies already deposited with or recovered by them before the Bill's commencement. 3. The 2026 Bill was passed by both Houses of Parliament in August 2026, whereas the Supreme Court ruling to which it responds was delivered by a nine-judge Bench in 2024. Which of the statements given above is/are correct?

  1. The 2026 Bill inserts a new Section 9D barring a State Government from imposing any tax, cess or other levy on mineral rights or mineral-bearing lands except in accordance with conditions or restrictions prescribed by the Central Government.
  2. Unlike the 2015 amendment, which created the District Mineral Foundation, the 2026 Bill requires State Governments to refund to lessees all amounts of such levies already deposited with or recovered by them before the Bill's commencement.
  3. The 2026 Bill was passed by both Houses of Parliament in August 2026, whereas the Supreme Court ruling to which it responds was delivered by a nine-judge Bench in 2024.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q7. Auction was first made the mandatory method for the grant of mineral concessions under the MMDR Act, 1957 by which one of the following amendments?

  • A. The amendment of 2015, which also provided for stringent penalties for illegal mining
  • B. The amendment of 2016, which addressed certain emergent issues in the mineral sector
  • C. The amendment of 2020, which dealt with continuity of mining operations on expiry of leases
  • D. The amendment of 2021, which also removed the distinction between captive and merchant mines

Q8. The Exploration Licence, permitting reconnaissance and prospecting operations for deep-seated and critical minerals, was introduced into the MMDR Act, 1957 by which one of the following?

  • A. The MMDR Amendment Act of 2015, which introduced the auction regime for mineral concessions
  • B. The MMDR Amendment Act of 2021, which permitted transfer of statutory clearances to a new lessee
  • C. The MMDR Amendment Act of 2023, which also created Part D of the First Schedule
  • D. The MMDR Amendment Bill of 2025, which sought to widen the scope of mineral exploration

Q9. Consider the following statements regarding the passage of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 through Parliament: 1. It was introduced in the Lok Sabha on 10 August 2026 by the Ministry of Mines. 2. It was passed by the Lok Sabha on 12 August 2026 and by the Rajya Sabha on 13 August 2026. 3. It was referred to the Departmentally Related Parliamentary Standing Committee for examination before being taken up for passage. 4. Having been passed by both Houses, it requires the assent of the President under Article 111 of the Constitution before it becomes an Act. Which of the statements given above is/are NOT correct?

  1. It was introduced in the Lok Sabha on 10 August 2026 by the Ministry of Mines.
  2. It was passed by the Lok Sabha on 12 August 2026 and by the Rajya Sabha on 13 August 2026.
  3. It was referred to the Departmentally Related Parliamentary Standing Committee for examination before being taken up for passage.
  4. Having been passed by both Houses, it requires the assent of the President under Article 111 of the Constitution before it becomes an Act.
  • A. 1 and 3
  • B. 2 and 4
  • C. 3 only
  • D. 3 and 4

Q10. The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was piloted in Parliament by which one of the following ministries?

  • A. The Ministry of Coal, which handles all legislation on mineral-bearing lands in the country
  • B. The Ministry of Mines, which administers the parent Act of 1957
  • C. The Ministry of Steel, which is the sole nodal authority for every mineral used in metallurgy
  • D. The Ministry of Environment, Forest and Climate Change, whose clearance alone governs all mining leases

Q11. Which one of the following correctly describes the statutory basis and funding of the District Mineral Foundation?

  • A. Established under Section 9B of the MMDR Act, inserted in 2015, funded by 10% of royalty for mining leases granted on or after 12 January 2015
  • B. Established under Section 9B of the MMDR Act, inserted in 2023, funded by 30% of royalty for all mining leases irrespective of the date of grant
  • C. Established under Section 9C of the MMDR Act, inserted in 2021, funded by 2% of royalty payable by every holder of a mining lease
  • D. Established under Section 9A of the MMDR Act, inserted in 2015, funded by a share of auction premium devolved on the recommendation of the Finance Commission

Q12. Mineral concessions for the critical and strategic minerals listed in Part D of the First Schedule to the MMDR Act, 1957 are auctioned by which one of the following?

  • A. The State Government concerned, with the entire auction proceeds being transferred to the Central Government
  • B. The Central Government, with the auction revenue continuing to accrue to the State Government concerned
  • C. The Geological Survey of India, which grants such concessions on behalf of the Ministry of Mines
  • D. The National Mineral Exploration Trust, which conducts such auctions out of its statutory exploration corpus