Pinarayi backs Satheesan’s stand against mining law, suspects move to privatise Kerala’s mining PSU

Bengaluru: Kerala Opposition leader Pinarayi Vijayan has backed Chief Minister VD Satheesan’s opposition to the Centre’s Mines and Minerals (Development and Regulation) Amendment Bill, 2026, warning that it could weaken states’ fiscal powers and threaten state’s mining public sector enterprise, Kerala Minerals and Metals Ltd (KMML).

Vijayan said the amended provisions were contrary to constitutional principles and urged the UDF government to be prepared to challenge them in the Supreme Court.

“The question is whether the government of Kerala is prepared to take a stand against the Union government to protect federalism and the rights of the states,” the former chief minister said.


He opposed the proposed restrictions on states imposing taxes, cess or other levies linked to mineral rights and mineral-bearing land, calling them an encroachment on states’ constitutional powers.

Parliament passed the Bill last week. A key provision, Section 9D, restricts states from imposing taxes, cess or other levies on mineral rights or mineral-bearing land based on mineral quantity or value, royalty payable or similar criteria, except under conditions prescribed by the Centre. It also seeks to invalidate certain state levies imposed before the law takes effect but not yet recovered.

The CM has said the state will oppose the changes politically and legally, citing the potential impact on state revenues and fiscal powers.

Vijayan also alleged that the changes could weaken KMML by restricting mineral-sand mining at Chavara and creating greater space for private players. He claimed the company was being forced to buy raw materials from private firms at higher prices.

“An attempt is now underway to push KMML completely into a crisis by halting the mining of mineral sands in the public sector at Chavara,” he said.

Satheesan has termed the proposed restrictions a “serious encroachment” on states’ constitutional powers. He has also questioned the Centre’s attempt to define land as “mineral-bearing land”, noting that land is a state subject under Entry 18 of the State List.

Kerala plans to convey its objections to the Centre and examine legal options.