Parliament amended the Mines and Minerals Bill, 2026, restricting states' power to levy mineral taxes. The Centre seeks predictability, investment, and lower infrastructure costs. States, however, fear revenue loss and threats to fiscal federalism, particularly after the Supreme Court affirmed their taxing rights. India's mining tax rate exceeds 50%, higher than global averages, discouraging investment. While the Centre claims states' revenue share remains high, states with limited resources worry. A more predictable mining framework is crucial for attracting investments and fostering national economic growth.