2 weeks ago
Naveen Patnaik says mining bill infringes Odisha's financial rights
India's government has made a new law about the minerals found under the ground, called the Mines and Minerals (Development and Regulation) Amendment Bill, 2026.
Some parts of India, like the state of Odisha, have a lot of these minerals.
Odisha earns about Rs 50,000 crore every year from companies that dig them up.
The state uses this money for things like schools, hospitals, roads and help for poor families.
A leader named Naveen Patnaik, who used to be Odisha's chief minister, says the new law is not fair.
He says the law takes away Odisha's right to collect its own taxes from mining and gives all the power to the central government.
He even says only problems like pollution would stay in Odisha while the money goes elsewhere.
Patnaik wrote a letter to the current chief minister, Mohan Charan Majhi, asking him to call a special meeting.
He wants everyone in the state assembly to come together and say no to the law.
Earlier, India's Supreme Court had said states could collect such taxes, but Patnaik worries this new law changes that.
Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which the BJD opposed in the Rajya Sabha.
Naveen Patnaik called the law an infringement on Odisha's financial rights and a threat to the state's fiscal autonomy and constitutional rights over natural resources.
Patnaik urged Chief Minister Mohan Charan Majhi to convene an all-party meeting and a special Odisha Assembly session to pass a unanimous resolution against the Bill.
The Bill expands Union control to mineral-bearing lands and prohibits states from levying taxes, cesses or similar levies on mineral rights and mineral-bearing lands.
Odisha earns around Rs 50,000 crore annually from mining, and the Supreme Court in July 2024 upheld states' power to tax mineral rights.
- Who
- Naveen Patnaik, BJD president and Leader of the Opposition in the Odisha Assembly, who wrote to Odisha Chief Minister Mohan Charan Majhi.
- What
- Opposition to the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which Patnaik says infringes on Odisha's fiscal autonomy and rights over mineral resources.
- Where
- Odisha, India; the Bill was passed by the Union Parliament.
- When
- The Bill was passed by Parliament, and Patnaik sent his letter to the Chief Minister on Friday, a day after the passage.
- Why
- Patnaik says the Bill expands Union control over mineral-bearing lands and bars states from levying taxes and cesses, threatening Odisha's roughly Rs 50,000 crore annual mining revenue and undermining cooperative federalism.
Odisha and state fiscal autonomy advocates
Union government and Parliament
Control over mineral-bearing lands
Odisha and state fiscal autonomy advocates
The Section 2 amendment expanding Union control to mineral-bearing lands is an encroachment on the state's land and fiscal jurisdiction, Patnaik says.
Union government and Parliament
Parliament passed the Bill, which extends the Centre's regulatory control to mineral-bearing lands alongside mines.
State taxation of mineral rights
Odisha and state fiscal autonomy advocates
The Supreme Court upheld states' power to tax mineral rights in July 2024, and Patnaik says prohibiting such levies deals a heavy blow to state revenue autonomy and federalism.
Union government and Parliament
The Bill prohibits state governments from levying any tax, cess or similar levy on mineral rights or mineral-bearing lands, except under conditions prescribed by the Centre, and grants the Centre sole rule-making authority.
Impact on Odisha's revenue and development
Odisha and state fiscal autonomy advocates
Patnaik warns the Bill could cause massive revenue losses, stifle Odisha's development agenda, and leave the state bearing only the pollution, displacement and burden of mining.
Union government and Parliament
The Union government enacted the legislation through Parliament, indicating it considers central regulation of mineral resources necessary.
Key facts
- Legislation
- Mines and Minerals (Development and Regulation) Amendment Bill, 2026
- Key opponent
- Naveen Patnaik, BJD president and former Odisha chief minister
- Letter addressed to
- Odisha Chief Minister Mohan Charan Majhi
- Demands
- All-party meeting and special Odisha Assembly session for a unanimous resolution
- Odisha's annual mining revenue
- Around Rs 50,000 crore
- Contested provisions
- Amendments to Sections 2, 9D and 13 of the MMDR Act
- Supreme Court ruling
- July 2024: states may tax mineral rights; arrears allowed from April 1, 2005 without interest or penalty
- Earlier law
- ORISED Act 2004 struck down by the Orissa High Court in December 2005; appeal pending in the Supreme Court
Quotes
BJD president Naveen Patnaik
President of the Biju Janata Dal political party
“If the central government takes away the state’s authority over mineral-bearing lands and its right to levy cesses, only pollution, displacement and the burden of mining will remain with Odisha, while the benefits are taken away from its people.”
telegraphindia.com
indianexpress.com
“The bill directly undermines a critical pillar of the Centre-state relationship, taking India’s federal structure in a distinctly retrogressive direction and striking at the foundation of cooperative federalism.”
telegraphindia.com











