UPSC Prelims Practice Questions — MMDR Amendment Act, 2026

Q1. With reference to the constitutional entries invoked in the context of the Mines and Minerals (Development and Regulation) Amendment Act, 2026, consider the following statements: 1. Entry 50 of the State List empowers State legislatures to tax mineral rights, subject to any limitations imposed by Parliament by law relating to mineral development. 2. The State power to tax under Entry 49 of the State List is subject to the same parliamentary limitation as the power under Entry 50. 3. Entry 54 of the Union List enables Parliament to provide for the regulation of mines and mineral development in the public interest. 4. Under Entry 49 the subject of taxation is mineral rights, whereas under Entry 50 the subject of taxation is land as a unit. Which of the above is/are NOT correct?

  1. Entry 50 of the State List empowers State legislatures to tax mineral rights, subject to any limitations imposed by Parliament by law relating to mineral development.
  2. The State power to tax under Entry 49 of the State List is subject to the same parliamentary limitation as the power under Entry 50.
  3. Entry 54 of the Union List enables Parliament to provide for the regulation of mines and mineral development in the public interest.
  4. Under Entry 49 the subject of taxation is mineral rights, whereas under Entry 50 the subject of taxation is land as a unit.
  • A. 1 and 3
  • B. 2 and 4
  • C. 2 only
  • D. 1, 3 and 4

Q2. Consider the following impositions in the context of the Mines and Minerals (Development and Regulation) Amendment Act, 2026: 1. A levy imposed by a State Government on mineral-bearing lands computed on the value of the minerals produced. 2. A cess imposed by a State Government on mineral rights computed with reference to the royalty payable. 3. Royalty payable by a lessee at the rates specified in the Schedules to the MMDR Act, 1957. 4. The contribution payable by a lessee to the District Mineral Foundation of the district concerned. Which of the above are correctly identified as impositions that a State Government may make only in accordance with conditions or restrictions prescribed by the Central Government?

  1. A levy imposed by a State Government on mineral-bearing lands computed on the value of the minerals produced.
  2. A cess imposed by a State Government on mineral rights computed with reference to the royalty payable.
  3. Royalty payable by a lessee at the rates specified in the Schedules to the MMDR Act, 1957.
  4. The contribution payable by a lessee to the District Mineral Foundation of the district concerned.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1, 3 and 4
  • D. 3 and 4 only

Q3. In the Mineral Area Development Authority case (2024), how did the Supreme Court characterise the nature of royalty payable by a mining lessee?

  • A. A compulsory exaction in the nature of a tax on mineral rights, traceable to Entry 50 of the State List
  • B. A contractual consideration flowing from the lessee to the lessor under the mining lease, and not an impost of the nature of a tax
  • C. A regulatory fee recovered for services rendered in regulating mineral development, traceable to Entry 54 of the Union List
  • D. A tax on land measured by the quantity of mineral extracted, traceable to Entry 49 of the State List

Q4. Consider the following statements comparing the Supreme Court's 2024 Mineral Area Development Authority ruling with the Mines and Minerals (Development and Regulation) Amendment Act, 2026: 1. While the ruling held that Parliament may limit the State taxing power over mineral rights but not over land, the Amendment Act restrains States in respect of both mineral rights and mineral-bearing lands. 2. The Amendment Act obliges State Governments to refund amounts already collected under levies that it renders invalid. 3. Whereas the ruling permitted States to raise tax demands relating to periods from 1 April 2005 onwards, the Amendment Act invalidates such demands to the extent they remain unrecovered at its commencement. Which of the statements given above is/are correct?

  1. While the ruling held that Parliament may limit the State taxing power over mineral rights but not over land, the Amendment Act restrains States in respect of both mineral rights and mineral-bearing lands.
  2. The Amendment Act obliges State Governments to refund amounts already collected under levies that it renders invalid.
  3. Whereas the ruling permitted States to raise tax demands relating to periods from 1 April 2005 onwards, the Amendment Act invalidates such demands to the extent they remain unrecovered at its commencement.
  • A. 1 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q5. The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was passed by the Rajya Sabha how many days after its introduction in the Lok Sabha?

  • A. Two days
  • B. Three days
  • C. Six days
  • D. Eight days

Q6. Consider the following statements regarding the passage of successive amendment Bills to the Mines and Minerals (Development and Regulation) Act, 1957: 1. The 2026 Bill was passed by the Lok Sabha on the second day after its introduction, whereas the 2025 Bill was passed by the Lok Sabha on the day immediately following its introduction. 2. Both the 2025 and the 2026 Bills were cleared by the Rajya Sabha in the same calendar month in which they had been introduced in the Lok Sabha. 3. Like the 2026 Bill, the 2023 amendment Bill was also introduced in the Lok Sabha and passed by both Houses within the month of August. Which of the statements given above is/are correct?

  1. The 2026 Bill was passed by the Lok Sabha on the second day after its introduction, whereas the 2025 Bill was passed by the Lok Sabha on the day immediately following its introduction.
  2. Both the 2025 and the 2026 Bills were cleared by the Rajya Sabha in the same calendar month in which they had been introduced in the Lok Sabha.
  3. Like the 2026 Bill, the 2023 amendment Bill was also introduced in the Lok Sabha and passed by both Houses within the month of August.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. Consider the following statements comparing the 2023 and 2025 amendments to the Mines and Minerals (Development and Regulation) Act, 1957: 1. The 2023 amendment created the exploration licence for minerals specified in a newly inserted Seventh Schedule, whereas the 2025 amendment allowed the inclusion of new minerals in an existing mining lease. 2. Under the 2023 amendment the Central Government auctions mining leases and composite licences for critical and strategic minerals, although the concessions themselves continue to be granted by State Governments. 3. The 2025 amendment reduced the contribution payable by lessees to the central exploration trust from three per cent to two per cent of royalty. Which of the statements given above is/are correct?

  1. The 2023 amendment created the exploration licence for minerals specified in a newly inserted Seventh Schedule, whereas the 2025 amendment allowed the inclusion of new minerals in an existing mining lease.
  2. Under the 2023 amendment the Central Government auctions mining leases and composite licences for critical and strategic minerals, although the concessions themselves continue to be granted by State Governments.
  3. The 2025 amendment reduced the contribution payable by lessees to the central exploration trust from three per cent to two per cent of royalty.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. Consider the following statements about successive amendments to the Mines and Minerals (Development and Regulation) Act, 1957: 1. The 2015 amendment mandated auction as the method for the grant of mineral concessions covered by it. 2. The 2015 amendment provided for a District Mineral Foundation to be established by the State Government and a National Mineral Exploration Trust to be established by the Central Government. 3. The 2023 amendment removed six minerals from the list of atomic minerals and required all of them to be auctioned exclusively by the State Governments concerned. 4. The 2025 amendment removed the ceiling of fifty per cent of annual production on the sale of minerals from captive mines and exempted every mineral newly added to an existing lease from any additional payment. Which of the above is/are NOT correct?

  1. The 2015 amendment mandated auction as the method for the grant of mineral concessions covered by it.
  2. The 2015 amendment provided for a District Mineral Foundation to be established by the State Government and a National Mineral Exploration Trust to be established by the Central Government.
  3. The 2023 amendment removed six minerals from the list of atomic minerals and required all of them to be auctioned exclusively by the State Governments concerned.
  4. The 2025 amendment removed the ceiling of fifty per cent of annual production on the sale of minerals from captive mines and exempted every mineral newly added to an existing lease from any additional payment.
  • A. 1 and 2
  • B. 3 only
  • C. 3 and 4
  • D. 2 and 4

Q9. Which one of the following best describes the principal change made by the Mines and Minerals (Development and Regulation) Amendment Act, 2026 in the subject-matter placed under the control of the Union?

  • A. Union control now extends to the regulation of mineral-bearing lands, in addition to the regulation of mines and mineral development
  • B. Union control now extends to every parcel of land situated within a notified mining district, irrespective of its mineral content
  • C. Union control now extends to the ownership of all minerals, which stands transferred from the State Governments to the Union
  • D. Union control now extends to the grant of every mineral concession, the power of State Governments to grant leases being wholly withdrawn

Q10. Under the Mines and Minerals (Development and Regulation) Amendment Act, 2026, what does the expression 'mineral-bearing land' mean?

  • A. Any land over which a mining lease, prospecting licence or composite licence is for the time being in force
  • B. Any land having mineral contents in accordance with the parameters prescribed by the Central Government
  • C. Any land notified by the State Government concerned as containing workable deposits of a major mineral
  • D. Any land in a district affected by mining operations, as notified for the purposes of the District Mineral Foundation

Q11. Under the Mines and Minerals (Development and Regulation) Act, 1957, what is the nature of the contribution payable to the District Mineral Foundation by the holder of a mining lease?

  • A. An amount not exceeding one-third of the royalty, at such rate as may be prescribed by the Central Government
  • B. An amount equal to the whole of the royalty payable, collected by the State Government over and above royalty
  • C. An amount equal to the contribution payable to the central exploration trust, as notified by the State Government
  • D. An amount fixed solely by the State Government concerned, no ceiling being prescribed under the Act

Q12. In the legal framework underpinning the National Critical Mineral Mission, the minerals listed in Part D of the First Schedule to the MMDR Act, 1957 are those—

  • A. for which mining leases and composite licences are auctioned by the Central Government, though the concessions are granted by State Governments
  • B. for which an exploration licence may be granted by State Governments through competitive bidding for reconnaissance or prospecting
  • C. which are reserved for exploitation by government companies and their subsidiaries, private participation being barred
  • D. which are classified as atomic minerals and are reserved for the Department of Atomic Energy and its undertakings