UPSC Prelims Practice Questions — MMDR Amendment Bill, 2026

Q1. The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was the first amendment to the parent Act of 1957 to do which one of the following?

  • A. Make auction the method for the grant of mineral concessions in place of discretionary allotment
  • B. Bar State Governments from imposing a tax or cess on mineral rights save as centrally prescribed
  • C. Empower the Central Government to auction mining leases for critical and strategic minerals
  • D. Abolish the distinction between captive and merchant mines for the sale of minerals produced

Q2. With reference to the bar on State levies introduced by the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, consider the following statements: 1. A State may not impose any tax or cess on mineral rights except in accordance with conditions or restrictions prescribed by the Central Government. 2. The bar covers mineral bearing land as well, and extends to a levy computed on the quantity or value of minerals or on the royalty payable. 3. Dues of such State levies that remained unpaid or unrecovered before the commencement of the amendment are deemed invalid, and amounts already recovered are to be refunded to those who paid them. 4. The bar operates only prospectively, leaving untouched every liability towards such State levies that had already arisen before commencement. Which of the statements given above is/are NOT correct?

  1. A State may not impose any tax or cess on mineral rights except in accordance with conditions or restrictions prescribed by the Central Government.
  2. The bar covers mineral bearing land as well, and extends to a levy computed on the quantity or value of minerals or on the royalty payable.
  3. Dues of such State levies that remained unpaid or unrecovered before the commencement of the amendment are deemed invalid, and amounts already recovered are to be refunded to those who paid them.
  4. The bar operates only prospectively, leaving untouched every liability towards such State levies that had already arisen before commencement.
  • A. 1 and 2
  • B. 2 and 3
  • C. 3 and 4
  • D. 1, 3 and 4

Q3. Consider the following legislative entries of the Seventh Schedule and the subject matter attributed to each: 1. Entry 54 of the Union List — regulation of mines and mineral development to the extent declared by Parliament by law to be expedient in the public interest. 2. Entry 49 of the State List — taxes on lands and buildings. 3. Entry 23 of the Concurrent List — regulation of mines and mineral development, exercisable by the Union and the States alike. 4. Entry 50 of the State List — taxes on mineral rights, subject to any limitations imposed by Parliament by law relating to mineral development. Which of the above is/are NOT correctly matched?

  1. Entry 54 of the Union List — regulation of mines and mineral development to the extent declared by Parliament by law to be expedient in the public interest.
  2. Entry 49 of the State List — taxes on lands and buildings.
  3. Entry 23 of the Concurrent List — regulation of mines and mineral development, exercisable by the Union and the States alike.
  4. Entry 50 of the State List — taxes on mineral rights, subject to any limitations imposed by Parliament by law relating to mineral development.
  • A. 1 and 4
  • B. 2 only
  • C. 3 only
  • D. 3 and 4

Q4. The power of Parliament to impose limitations, by law, on a State's levy of taxes on mineral rights is contained in which one of the following entries of the Seventh Schedule?

  • A. Entry 54 of the Union List
  • B. Entry 49 of the State List
  • C. Entry 97 of the Union List
  • D. Entry 50 of the State List

Q5. In its judgment of 25 July 2024 in Mineral Area Development Authority v. Steel Authority of India Ltd., how did the Supreme Court characterise the royalty payable under the Mines and Minerals (Development and Regulation) Act, 1957?

  • A. As a tax in the nature of a compulsory exaction, imposable exclusively by the Union Parliament
  • B. As a payment arising out of the contractual obligation to enjoy mineral rights, and not a tax
  • C. As a cess that is necessarily assimilated into the land revenue of the State concerned
  • D. As a fee that invariably compensates the State for the entire depletion of its mineral wealth

Q6. While permitting States to recover past dues after its 2024 ruling on mineral rights taxation, the Supreme Court fixed the earliest period to which such demands could relate. Which one of the following correctly states the direction it gave?

  • A. Demands may relate only to periods on or after 25 July 2024, the date of the judgment itself
  • B. Demands may relate to periods on or after 1 April 1989, the year of the precedent that was overruled
  • C. Demands may relate to periods on or after 1 April 2005, but must be recovered in a single instalment
  • D. Demands may relate to periods on or after 1 April 2005, with payment staggered over instalments

Q7. A provision inserted into the MMDR Act, 1957 in 2015 requires every holder of a mining lease to pay a percentage of royalty to a non-profit body whose funds are used for regional and detailed prospecting. That body is:

  • A. The District Mineral Foundation, established by the State Government in each affected district
  • B. Mineral Exploration and Consultancy Limited, a public sector undertaking of the Ministry of Mines
  • C. The National Mineral Exploration Trust, established by the Central Government by notification
  • D. The Indian Bureau of Mines, an attached office functioning under the Ministry of Mines

Q8. Consider the following changes to the Mines and Minerals (Development and Regulation) Act, 1957 and the amendment credited with each: 1. 2015 — auction adopted as the method for the grant of mineral concessions, and the District Mineral Foundation and the National Mineral Exploration Trust created. 2. 2021 — the distinction between captive and merchant mines removed. 3. 2023 — six minerals, including lithium, beryllium, titanium, niobium, tantalum and zirconium, taken out of the list of atomic minerals. 4. 2020 — the contribution payable by lease holders to the National Mineral Exploration Trust raised from two per cent to three per cent of royalty. Which of the above is/are NOT correctly matched?

  1. 2015 — auction adopted as the method for the grant of mineral concessions, and the District Mineral Foundation and the National Mineral Exploration Trust created.
  2. 2021 — the distinction between captive and merchant mines removed.
  3. 2023 — six minerals, including lithium, beryllium, titanium, niobium, tantalum and zirconium, taken out of the list of atomic minerals.
  4. 2020 — the contribution payable by lease holders to the National Mineral Exploration Trust raised from two per cent to three per cent of royalty.
  • A. 1 and 2
  • B. 2 and 3
  • C. 3 only
  • D. 4 only

Q9. Which one of the following was the first class of minerals in respect of which the Central Government was empowered to conduct auctions of mining leases to the exclusion of State Governments, and by which amendment?

  • A. Critical and strategic minerals placed in Part D of the First Schedule, by the 2023 amendment
  • B. Atomic minerals placed in Part B of the First Schedule, by the 2015 amendment to the parent Act
  • C. Deep-seated minerals occurring at depths beyond 200 metres, by the 2021 amendment to the Act
  • D. Hydrocarbon energy minerals placed in Part A of the First Schedule, by the 2020 amendment

Q10. The authority of the Central Government to auction mining leases for lithium and rare earth elements, to the exclusion of the State Governments, is traceable to which one of the following?

  • A. Their inclusion in Part D of the First Schedule of the MMDR Act, 1957 by the amendment of 2023
  • B. Their classification as atomic minerals under the Atomic Energy Act, 1962, which vests all such minerals in the Union
  • C. A notification under the National Critical Mineral Mission, which reserves all critical minerals entirely for central agencies
  • D. Entry 54 of the Union List, which by itself transfers every mineral auction in the country permanently to the Union

Q11. With reference to the passage and content of the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, consider the following statements: 1. It was introduced in the Lok Sabha in August 2026 as a Government Bill sponsored by the Ministry of Mines. 2. It was passed first by the Rajya Sabha and only thereafter by the Lok Sabha. 3. It brings under the control of the Union the regulation of mineral bearing land, identified by mineral content in accordance with parameters prescribed by the Central Government. 4. Since it restricts the taxing powers of the States, its passage required ratification by the Legislatures of not less than one-half of the States. Which of the statements given above is/are NOT correct?

  1. It was introduced in the Lok Sabha in August 2026 as a Government Bill sponsored by the Ministry of Mines.
  2. It was passed first by the Rajya Sabha and only thereafter by the Lok Sabha.
  3. It brings under the control of the Union the regulation of mineral bearing land, identified by mineral content in accordance with parameters prescribed by the Central Government.
  4. Since it restricts the taxing powers of the States, its passage required ratification by the Legislatures of not less than one-half of the States.
  • A. 1 and 3
  • B. 2 and 4
  • C. 2 only
  • D. 3 and 4

Q12. With reference to the public interest declaration contained in the Mines and Minerals (Development and Regulation) Act, 1957 and to Union primacy in mineral regulation, consider the following statements: 1. The Act declares it expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals. 2. This declaration takes effect through Entry 54 of the Union List, which operates only to the extent so declared by Parliament by law. 3. The 2026 amendment extends the reach of that Union control to mineral bearing land as well. 4. Once such a declaration is made, the State Governments cease to have any role in granting mineral concessions, which are thereafter granted by the Central Government. Which of the statements given above is/are NOT correct?

  1. The Act declares it expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals.
  2. This declaration takes effect through Entry 54 of the Union List, which operates only to the extent so declared by Parliament by law.
  3. The 2026 amendment extends the reach of that Union control to mineral bearing land as well.
  4. Once such a declaration is made, the State Governments cease to have any role in granting mineral concessions, which are thereafter granted by the Central Government.
  • A. 4 only
  • B. 1 and 2
  • C. 2 and 4
  • D. 1, 3 and 4