Bhubaneswar, Aug. 31 (UDN): The Mines and Minerals (Development and Regulation) Amendment Bill, 2026 has triggered a fresh political debate in Odisha, with concerns being raised over its potential impact on the state’s mining revenue and powers to levy mineral-related charges.

The issue has intensified after the Opposition Biju Janata Dal (BJD) questioned the financial implications of the amended law, while the ruling Bharatiya Janata Party (BJP) defended the legislation, leading to an exchange of views between the two parties.

Revenue and Taxation at the Core of Debate

At the centre of the controversy is whether the amended provisions could affect Odisha’s ability to generate revenue from its vast mineral resources.

Under the amended MMDR Act, state governments cannot impose new taxes on mineral-bearing lands beyond those permitted under the Central law. The provision has drawn attention in Odisha, where mining remains one of the state’s biggest revenue sources.

Currently, mining operations in the state involve multiple revenue streams, including royalty, auction premium, dead rent, District Mineral Foundation (DMF) contributions, GST and transit-related charges.

Odisha’s Mining Economy

Odisha is among India’s richest mineral-producing states, and mining contributes significantly to its finances.

Official figures show that 35 of the state’s 79 auctioned mining blocks have become operational. Between 2020-21 and 2025-26, Odisha generated around ₹87,000 crore through auction premiums alone, highlighting the sector’s importance to the state economy.

The ongoing debate centres on whether future amendments could influence the state’s revenue potential from mining and the extent of its fiscal authority over mineral resources.

Political Positions

BJD president Naveen Patnaik has raised concerns over the amended law by writing to Chief Minister Mohan Charan Majhi and BJP Members of Parliament, besides seeking clarification on several provisions of the Bill.

The BJP, on the other hand, has maintained that the amendment does not undermine Odisha’s interests and has defended the Centre’s position on the legislation.

Earlier Legal Context

The debate over Odisha’s powers to levy charges on mineral resources is not new. In 2005, the state enacted the Odisha Rural Infrastructure and Socio-Economic Development (ORISED) Act, which was later challenged in court, keeping the issue of mineral-related taxation under legal scrutiny for years.

With the MMDR Amendment Bill now back in focus, questions surrounding Odisha’s revenue from mineral wealth and the balance between central and state powers have once again become a key political issue in the state.