Hemant Soren says mining revenue is vital to Jharkhand’s finances and warns that restrictions on state levies could affect development and welfare programmes.

Jharkhand Chief Minister Hemant Soren has urged Prime Minister Narendra Modi to reconsider a recently passed mining bill, warning that restrictions on the state’s ability to collect mining-related revenue could put significant pressure on government finances.

In a letter to Modi, Soren said Jharkhand’s Mineral Bearing Land Cess was expected to generate around 71.1 billion rupees ($745 million) annually. He described mining-related revenue as an important source of income for the mineral-rich eastern state.

Soren Raises Revenue Concerns

Soren said mining revenue accounted for 84.9% of Jharkhand’s own non-tax revenue during the 2024-25 financial year.

According to the chief minister, any major reduction in this revenue could affect the state’s ability to finance development programmes, welfare schemes and social-security measures.

Jharkhand is one of India’s major mineral-producing states and relies heavily on mining-related activities for government revenue as well as employment and economic activity.

Parliament Passes Mining Bill

India’s Parliament has passed legislation that restricts state governments from introducing new taxes or other levies on mineral rights and mineral-bearing land unless they meet conditions specified by the federal government.

The central government has said the legislation is intended to establish a more uniform tax framework for the mining sector.

It also aims to address concerns over different and potentially excessive fiscal burdens placed on mining companies across Indian states.

Read more: Why Are Jharkhand Students Protesting? Inside the JPSC and JSSC Recruitment Controversy

Concerns Over Social Impact

Soren warned that the impact of the legislation could extend beyond state finances.

He said communities in Jharkhand have long faced the environmental and social costs associated with mining, while local governments depend on mining-related revenue to support development and welfare programmes.

According to the chief minister, a substantial reduction in state revenue could increase public dissatisfaction and contribute to social tensions in mining-affected communities.

The issue could now become a point of discussion between the Jharkhand government and the federal administration as the state seeks greater clarity over how the new mining framework will affect its finances.