How is royalty on minerals described in the source document?

Royalty is a payment made by a mining company to the government for extracting and using mineral resources. It is described as a contractual payment rather than a tax. The Mines and Minerals (Development and Regulation) Amendment Bill, 2026, seeks to bring "mineral-bearing lands" under central control, restricting states' power to impose taxes, cess, and levies on them. The Bill follows the July 2024 Supreme Court ruling that royalty is not a tax and states have powers to tax mineral rights under Entry 50 of the State List, but Parliament can impose limits.