Bhubaneswar: BJD president Naveen Patnaik on Friday claimed that the passage of the Mines and Minerals Amendment Bill poses a great threat to Odisha’s fiscal autonomy, and urged Chief Minister Mohan Charan Majhi to convene a special session of the Assembly to pass a resolution to oppose it.
The legislation will lead to massive revenue losses in mineral-rich states like Odisha and stifle its developmental agenda, the Leader of the Opposition claimed.
Parliament on Thursday passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to restrict states’ powers to levy taxes on mineral rights and mineral-bearing lands.
In a letter to Majhi, Patnaik said, “Summon a Special Session of the Odisha Legislative Assembly to formally pass a unanimous resolution opposing this Amendment Act and protesting the Union Government’s usurpation of state powers”.
The BJD leader also requested the chief minister to convene an all-party meeting immediately to build a unified consensus on safeguarding Odisha’s federal rights and mineral revenues, which he alleged have been impacted by the passage of the Bill.
“This legislative measure poses a serious threat to Odisha’s fiscal autonomy and constitutional rights over its natural resources,” said the former chief minister.
Patnaik said in the letter that the BJD MPs opposed this Bill in the Rajya Sabha, raising vital objections regarding the severe infringement on the state’s financial rights.
However, the ruling BJP’s 20 MPs were silent when the Bill was passed, and supported the legislation which will impact Odisha’s fiscal freedom, he said.
Patnaik said the provisions introduced in this Bill will impact mineral-rich states like Odisha, leading to massive revenue losses and stifling its developmental agenda.
The former chief minister pointed out that the amendment raises critical concerns like encroachment of state land and fiscal jurisdiction.
“The amendment expands Union control under Section 2 to include ‘mineral bearing lands’ alongside regulation of mines,” he noted.
Similarly, the BJD president claimed that the legislation will restrict the state’s revenue power also.
“Section 9D explicitly prohibits State Governments from levying any tax, cess, or similar levy on mineral rights or mineral-bearing lands (whether based on quantity, value, or royalty) except under conditions imposed by the Central Government,” he pointed out.
This apart, Patnaik pointed out that the amendment grants the Centre sole authority to frame rules restricting states’ power to levy taxes on minerals.
Asserting that Odisha’s natural wealth belongs to the people, Patnaik said that the revenue generated from mining operations is crucial for financing healthcare, education, social welfare schemes, and infrastructure development across the state.
“By stripping the state of its power to impose taxes and cesses on its own mineral-bearing lands, the Union Government has dealt a heavy blow to federalism and state revenue autonomy,” Patnaik said, adding that this legislation will have a long-term adverse implication for Odisha’s economy.
He said that fiscal autonomy is a constitutional principle built into India’s federal system.
“This Bill directly undermines a critical pillar of the Centre-State relationship, taking India’s federal structure in a distinctly retrogressive direction and strikes at the foundation of cooperative federalism,” Patnaik said.
“This issue transcends political affiliations, as it directly impacts the financial stability and future growth of Odisha. If the Central Government takes away the State’s authority over mineral-bearing lands and its right to levy cesses, only pollution, displacement and burden of mining will remain with Odisha, while the benefits are taken away from its people,” the former chief minister said.
Earlier, the BJD in a statement had claimed that the state would lose around Rs 12,000 crore per annum if the Bill passed in Parliament becomes a law.
Earlier in a statement, the BJD said: “The people of Odisha seek an answer to a question – how the state BJP government and the MPs accepted the bill, which strikes at the federal structure. It is unacceptable that Odisha’s mining revenue will not be invested in the development of the state and will instead be used for the development of other states.”
BJD general secretary Bhrugu Baxipatra alleged that the central government has made an “attempt to loot Odisha by amending the MMDR Act”.
“The Centre has passed the bill in Parliament for partisan interests. Despite the Supreme Court’s ruling that the state government has the complete right to collect revenue from the mining sector for the development of mineral-rich Odisha, the central government is disregarding the apex court’s order and taking away our rights,” he claimed.
The regional party also threatened to hit the streets to safeguard the interests of the people of Odisha.
