UPSC Prelims Practice Questions — BJD stages protest over Mines and Minerals Amendment Act

Q1. Consider the following four entries of the Seventh Schedule of the Constitution of India, all of which were invoked in the litigation over State levies on mining: 'Regulation of mines and mineral development subject to the provisions of List I'; 'Taxes on mineral rights, subject to any limitations imposed by Parliament by law relating to mineral development'; 'Taxes on lands and buildings'; and 'Regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest'. How many of these four entries are placed in the State List?

  • A. Only one of the four entries
  • B. Only two of the four entries
  • C. Only three of the four entries
  • D. All four of the entries

Q2. The Mines and Minerals (Development and Regulation) Amendment Act, 2026 inserts a definition of 'mineral bearing lands' into the parent Act of 1957. As defined, the expression means which one of the following?

  • A. Land over which a mining lease or a composite licence stands granted and is currently in force under the Act
  • B. Land containing minerals in accordance with such parameters as may be prescribed by the Central Government
  • C. Land notified as such by the State Government in whose territory the deposit is situated, after survey
  • D. Land situated within a district in which a District Mineral Foundation has been constituted under the Act

Q3. With reference to successive amendments to the Mines and Minerals (Development and Regulation) Act, 1957, consider the following: Which of the above is/are correctly identified?

  1. The 2015 Amendment introduced grant of mineral concessions through auction and provided for the establishment of the District Mineral Foundation.
  2. The 2023 Amendment empowered the Central Government to exclusively auction mining lease and composite licence for 24 critical minerals listed in a newly inserted Part-D of the First Schedule.
  3. The 2025 Amendment raised the contribution payable to the National Mineral Exploration Trust from 2 per cent to 3 per cent of royalty.
  4. The 2026 Amendment transferred the collection of royalty from the State Governments to the Central Government.
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 4
  • D. 1, 2 and 3

Q4. Under the Mines and Minerals (Development and Regulation) Act, 1957, payments made by a mining lease holder under which one of the following heads accrue to the Central Government rather than to the State Government concerned?

  • A. Royalty payable in respect of minerals removed or consumed from the leased area
  • B. The contribution payable to the District Mineral Foundation of the district concerned
  • C. The contribution payable to the National Mineral Exploration Trust constituted under the Act
  • D. The auction premium payable by the successful bidder for a mining lease

Q5. By its consequential order of August 2024 in Mineral Area Development Authority v. Steel Authority of India, the Supreme Court permitted States to recover past dues on mineral rights and mineral-bearing lands accruing from 1 April 2005 onwards, to be paid in staggered instalments spread over a period of how many years?

  • A. Eight years
  • B. Ten years
  • C. Twelve years
  • D. Fifteen years

Q6. Consider the following statements comparing the Supreme Court's rulings on levies relating to minerals: 1. In India Cements Ltd. v. State of Tamil Nadu (1989), a seven-judge Bench had held royalty to be a tax. 2. In State of West Bengal v. Kesoram Industries Ltd. (2004), a five-judge Bench held that royalty is not a tax, attributing the contrary conclusion of the earlier ruling to a typographical error. 3. In Mineral Area Development Authority v. Steel Authority of India (2024), the nine-judge Bench traced the States' power to tax mineral rights to Entry 54 of the Union List. Which of the statements given above is/are correct?

  1. In India Cements Ltd. v. State of Tamil Nadu (1989), a seven-judge Bench had held royalty to be a tax.
  2. In State of West Bengal v. Kesoram Industries Ltd. (2004), a five-judge Bench held that royalty is not a tax, attributing the contrary conclusion of the earlier ruling to a typographical error.
  3. In Mineral Area Development Authority v. Steel Authority of India (2024), the nine-judge Bench traced the States' power to tax mineral rights to Entry 54 of the Union List.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q7. With reference to the Mines and Minerals (Development and Regulation) Amendment Act, 2026, consider the following: Which of the above is/are NOT correct?

  1. It bars a State Government from imposing any tax, cess or levy, by whatever name called, on mineral rights or mineral-bearing lands except in accordance with conditions or restrictions prescribed by the Central Government.
  2. It withdraws from the State Governments the power to regulate and to tax minor minerals such as sand, gravel and laterite.
  3. State levies pertaining to the period before its commencement that remain unpaid or unrecovered are deemed invalid, while amounts already deposited or recovered are not refundable.
  4. It transfers the District Mineral Foundation contribution to the National Mineral Exploration Trust administered by the Central Government.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 only

Q8. Which one of the following statements regarding the enactment of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 by Parliament is correct?

  • A. It was introduced in the Lok Sabha in August 2026 and completed its passage through both Houses on 13 August 2026
  • B. It was introduced in the Rajya Sabha and required prior ratification by all mineral-bearing State Legislatures before enactment
  • C. It was certified as a Money Bill, and the Rajya Sabha was therefore wholly excluded from any consideration of its clauses
  • D. It completed its passage through both Houses on 10 August 2026, the very day it was laid before the Lok Sabha

Q9. Odisha, which holds roughly 96 per cent of India's chromite and about half its bauxite resources, receives explored mineral blocks for auction from a body that is an attached office of the Ministry of Mines, has its central headquarters at Kolkata, and maintains regional offices at Lucknow, Jaipur, Nagpur, Hyderabad and Shillong. That body is:

  • A. The Indian Bureau of Mines, the regulator for approval of mining plans and mineral conservation
  • B. The Geological Survey of India, mandated to create and update national geoscientific information
  • C. Mineral Exploration and Consultancy Limited, the public sector drilling and exploration agency
  • D. The National Institute of Rock Mechanics, the research body for mining strata and ground control

Q10. Under the Mines and Minerals (Development and Regulation) Act, 1957, the liability of the holder of a mining lease to pay royalty to the State Government in respect of any mineral removed or consumed from the leased area arises under which one of the following sections?

  • A. Section 8A, which governs the period for which a mining lease is granted or renewed
  • B. Section 9, which governs royalties payable by holders of mining leases
  • C. Section 9B, which governs the establishment and functions of District Mineral Foundations
  • D. Section 9C, which governs the constitution of the National Mineral Exploration Trust

Q11. A State party aggrieved by a central law routed its memorandum to the President through the Governor. In this context, consider the following: Which of the above is/are correctly identified?

  1. Under Article 200, the Governor may reserve a Bill passed by the State Legislature for the consideration of the President.
  2. Under Article 356, the President may act on receipt of a report from the Governor of a State.
  3. Under Article 168, the Governor is a component part of the Legislature of the State.
  4. Under Article 201, the President is required to declare assent or withholding of assent within one month of a Bill being reserved for consideration.
  • A. 1 and 2 only
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1 and 4 only

Q12. The report of the Sixteenth Finance Commission, tabled in Parliament in February 2026 for the award period beginning 2026-27, recommended that the States' share in the divisible pool of central taxes be fixed at what percentage?

  • A. 32 per cent
  • B. 41 per cent
  • C. 42 per cent
  • D. 50 per cent