The Jharkhand cabinet, chaired by Chief Minister Hemant Soren, on Monday approved 33 significant proposals, covering agriculture, infrastructure, education, governance, and welfare reforms.

One of the most crucial decisions was the approval of Amendments under the Jharkhand Mineral Bearing Land Cess Act, 2024.

This is in accordance with the Jharkhand Assembly passing a Bill to impose cess on mined minerals to boost the state's revenue three days back on Friday.

This move follows the Supreme Court's July 25 ruling, which affirmed that the legislative power to tax mineral rights rests with the states.

Mining Minister in-charge Mithilesh Thakur introduced the 'Jharkhand Mineral-Bearing Land Cess Bill 2024', which was approved by voice vote.

The Bill proposes varying tax rates for different minerals on a per-metric-tonne basis: Rs 100 for coal and iron ore, Rs 70 for bauxite, and Rs 50 for manganese ore and other minerals.

This move of the Hemant Soren government has far reaching implications. One, the cess collected from central government public sector undertakings such as Central Coalfields Ltd, Bharat Coking Coal Ltd and National Thermal Power Corporation can help the state government implement is social welfare schemes such Maiya yojna.

However, coal supplied by the above PSUs for thermal power plants in Jharkhand and across the country will have to pay millions of rupees as additional cess to the state government of Jharkhand.

This can increase the price of CCL, BCCL and other companies producing coal in Jharkhand promoting the purchasing companies to explore import of coal from foreign countries.